Strategy marketing Essay Example

serves as an analogy for unexplored market spaces with greater potential.

At the core of Blue Ocean Strategy lies 'Value Innovation', which involves creating value for both buyers and companies through various means such as products, services, or delivery methods that enhance market value while eliminating less valuable features or services. The text challenges Michael Porter's belief that successful businesses only concentrate on low-cost or niche markets by advocating a shift towards considering value and lower costs beyond traditional market divisions.

It explains that Blue Ocean Strategies redefine how teenagers perceive "low cost". Unlike traditional red ocean strategies relying on differentiation and low-cost offerings for competitive advantage, blue ocean strategy strives to create significant value through innovation for both buyers and the company.This unique approach enables companies to enter untapped market spaces without facing competition. To achieve this, it is necessary to align utility, price, and cost. The perceived value of buyers is calculated by subtracting the price from the utility, while the company generates value by deducting the cost from the price. On the contrary, red ocean strategies focus on surpassing competitors and gaining market share in an already established competitive environment. Companies implement various tactics within existing market spaces such as outperforming competition, capitalizing on demand, making trade-offs between value and cost or aligning all activities with a chosen differentiation or low-cost strategy to gain a competitive edge.

Ford's exemplification of blue ocean strategy can be seen through its implementation with the Model T which showcases industry and market dynamics. Strata can incorporate blue ocean strategic thinking into its business strategy by creating a product that caters to a wide range of consumers and utilizes high-quality

materials just like Henry Ford did with the Model T. Despite offering only one color option and model, the Model T was renowned for its reliability, durability, and ease of repair. Furthermore, Ford priced it in a way that made it affordable for most Americans. Compared to other cars during that time period, the initial Model T had a price of $850 which was half their cost. Over time, Ford continued reducing the price of the Model T until it reached $240 by 1924This pricing approach provided significant value to consumers in comparison to their closest alternative at the time, which was the horse-drawn carriage. Ford revolutionized the automotive industry by implementing a standardized approach and restricting options and interchangeable parts on their assembly line. Skilled craftsmen were replaced with ordinary unskilled laborers who efficiently completed one small task, resulting in a 60% reduction in labor hours. This innovative approach allowed Ford to significantly reduce costs and make their cars accessible to the mass market. By incorporating these concepts from Henry Ford's success story into Strata's business strategy, they can incorporate blue ocean strategic thinking by creating products that cater to diverse consumer needs while utilizing high-quality materials and focusing on affordability through competitive pricing strategies similar to what Ford did with his Model T. Additionally, Strata can streamline production processes through standardization and limited options or interchangeable parts like Ford's assembly line approach. This will enable them to reduce costs without compromising quality and ultimately achieve success in new untapped markets—a true application of blue ocean strategic thinking. Let's outline the specifics: A) Enhance the internal features and safety of our vehicles within our

product mix. Furthermore, we have chosen to allocate funds towards developing new technologies that will enhance the value of our cars.
After analyzing the dealership report, it was clear that car sales were stronger in the North and East regions compared to the West and South areas. To tackle this imbalance, our decision is to expand our dealership presence specifically in the North and East regions.