Blue ocean scheme makes the competition irrelevant by making a new market infinite where there is no competitions. There are many pros and cons of this strategy- the chief and considerable advantage of this scheme is the first mover benefit in footings of market incursion where the companies see no competition and hence these companies become the male monarch of the market. These companies ne’er use competition as the benchmark and hence there is more range for deduction of engineering in the new approaching merchandises as there will be no market boundaries.
This scheme is suited chiefly for little concern organisations as it involves less hazard and less capital investing Though bluish ocean scheme has many advantages. it has few cons as good like- happening an untapped market is hard particularly in a globalized universe where information reaches corners of the universe really fast. Measuring the client involvement becomes hard as the client base is really immense and therefore this scheme is hazardous if there is no demand for the merchandise.
Uncontested or untapped market Oklahoman or subsequently becomes Red Ocean. as bluish ocean scheme is more attractive and hence creates competition and the organisations lose first mover benefit.
Companies that enter the market tardily. have ability and advantage to analyze the behaviour of the bing merchandises and hence come up with a better merchandise. Indian auto market was a monopolistic market ruled by Hindustan Motors and Premier Automobiles in 1980’s. Analyzing this market. Maruti Udyog Ltd came up with Maruti 800 which was the first of all time fuel efficient auto in India which had international engineering. This auto became a immense success as it had all the advantages being the first mover in an untapped market. It captured about 75 % of the market portion and ruled the market for about 15 old ages. But bit by bit this bluish ocean market became Red Ocean as many other companies like Hyundai and Chevrolet entered the market. This was the clip when Maruti redesigned its schemes and came up with a in-between degree auto –Swift. Swift once more brought a immense success to the company. Hence to retain the first mover advantage. companies should make high grade of trade name value in the bluish ocean ; a good research about the demands and wants of clients and making a market system that is simple to follow and implement.
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Pros and Cons of Blue Ocean Strategy Sample. (2017, Sep 16). Retrieved from https://graduateway.com/pros-and-cons-of-blue-ocean-strategy-essay-sample-essay/