I want this assignment to be done in 3 hours 1. Watch the Ted Talk: Blue Ocean with Renee Mauborgne https://ed.ted.com/on/25CLuAyW 2. Read the Dig Deeper Section 3. Initial Post (600 words) Discuss the factors associated with Red Ocean vs. Blue Ocean Strategies. Include in your answer recommendations on how to formulate and execute Blue Ocean Strategies for your company and make competitors irrelevant. 4. Reply Posts (300 words each) Choose two (2) students that you agree or disagree with and reply to them. You can also reply to your professor’s posts. Posts must contain thought provoking and analytical observations ; contributions embedded with academic literature and a list of references are encouraged.* proper citation.

The two discussions that I want a reply on are these: Discussion 1: Red and Blue Oceans Strategy When I saw the title of the book, I asked myself what is blue oceans strategy? Then I took the book and read it carefully from the first page. It was interesting to me. I learned a lot and I understood what are the blue and red oceans. After reading the book and watched the video, there are lots of things to talk about them but I summarized it in two short discussion parts which are red oceans and blue oceans. First, red Oceans represent all the industries in existence today and this is known as market space. These mean there are a lot of companies, organizations and industries are existed in the market with the same product and services, focusing on the same geographic locations and consumers. The competition is very tide and everyone trying to be the winner and beat the competition; the competitive rules of the play are known and industry boundaries are well defined. As the market space gets crowded, prospects for profits and growth are reduced. The competitors know what they produce and who are their consumers, but they have to beat to increase their profit impact. There is no new market space for them unless they expanding their business into blue oceans strategy, stop to beat the competition and create demands. In this strategy, the industries should spend a lot of time, energy and money to be alive and make their business profitable. Competing in red oceans is a zero-sum game. This means an investor invest in a business with low-profit impact. The market competing strategy has to see the wealth between all the rival companies and divides existing wealth between them. In this strategy, the competition is very high and the companies have to compete fiercely for a greater share of limited demand. It is always important to know a good understanding of the market, analyzing the economic structure of the existing industries, choosing a strategic position of low cost and differentiation, and compete skillfully in the red ocean. According to the research, (Blue Ocean Strategy Book, page 7), “the red ocean business launch is 86%, the revenue impact is 62% and the profit impact is 39%”. When we take a look at the numbers on the blue ocean launches we see a big difference in the profit impact with the percentage of 61%; although, its business launch is 14% and revenue impact is 38%. Second, Blue oceans denote all the industries not in existence today, and this is the unknown market space. The investors create new demand, find their space in the market, and the opportunity is open for highly profitable growth. In this strategy, competition is irrelevant because the rules of the game are not set up yet. When the investors set good rules for their business, they will be the one to create demand for the consumers and find their space in the market space. The blue oceans are unexploited market space which has highly profitable growth and demand creation. Most of them are created from within the red ocean by expanding their existing industry boundaries. When we take a look back to the previous years, there weren’t a lot of industries existed at that time which is existed today. If we see the smartphone companies about twenty years ago, there were no smartphone producers in the market. When Apple introduced the iPhone in the market there were some other phone companies like Nokia in the market as well. Apple had a good market research and they could expand their products and created a good demand for their consumers. Nokia couldn’t swim in the red ocean and finally, they sold the company. Today we see Apple make the $billions profit from the iPhone every year. Even though Samsung Galaxy, LG, and HTC are trying to beat the competition with iPhone but they are not able to make their consumers happy and make them satisfied in the market. Never the less, there is still space in the market for smartphone products due to the high price of iPhone. When other companies produce the smartphone with a lower price with good quality like iPhone they can create uncontested market space and make the competition irrelevant. Blue Ocean is powerful in the terms of market growth and good opportunities to make the profit. Finally, it is important to have a good understanding of how to compete skillfully in the red ocean. Analyzing the economic structure of an existing industry; Choosing a strategic position of low cost or differentiation into the market competition. The creators of blue oceans don’t use the competition as their benchmark. Instead, they follow a different strategic logic and make the competition irrelevant. My personal interest is financial services firm in the field of financial consulting, taxes, accounting, bookkeeping, and accounting institute. I see there are many financial services in the market, follow the same strategy, racing to beat the competition by building a defensible position within existing industries. I like to create a value innovation by establishing a financial institute to train the students in the field of accounting and then introduce them to the market. In the meantime, I like to create demand in the field of accounting, bookkeeping, financial consulting. In the field of bookkeeping, I will transfer the work to a low-cost country to hire some professionals to do the work for me. Discussion 2: Hi, First, I would like to say that I really enjoyed reading the differences between red and blue ocean. Second, after I watched Ted Talk; blue ocean with Renee Mauborgne, I can say that there is too much to talk about it. It is such a great theory. In our modern business world, so many companies are not blue ocean companies. So many of them are just fighting in the red ocean. They are lowering demand and rising competition. In Renee Mauborgne and W. Chan, they summarize three factors of a blue ocean strategy that can help the businesses to be a blue ocean company. Those three factors are include as follow: Divergence: the strategy. If we want to be as blue ocean company, our own strategies should be totally different from other industries. Focus: simply, it is not just about to add changes, it is about finding something different or anything completely different. Compelling tagline: this is important. It is like open window. Clearly, it is about communication that value out customers. Without a good and clear communication, the first two factors are wasted. A good example for blue ocean strategy, the Apple company. When iPod was introduced in 2001, Steve jobs said that “Apple invented a whole new category of digital music player that let the users put the entire music collection in their pocket and listen to them wherever they go. At that time, Apple did such a great thing, it looked behind what were in the market and they could create a new market and product that create it a new industry by them self. Simply, Apple company looked behind what the customers looking for and asking for and they could create really successful product. Not just iPod, the other products that lunched the few years after for example iPhone. However, if we look back to several years ago, we will find many stories and factors about the companies that created their own products and be successful in their business for example Canon’s strategic. Back again to red ocean strategy, so many companies in our modern time are following this kind of strategy that aims to fighting and beating the competition on the market that already exists. In addition to that, this kind of strategy leads to the organizations choosing to follow on of the strategies, low cost or differentiations. The companies who follow this strategy and whichever they chosen they have to align all activities by using one of those strategic directions. In the same side, I can say that there is so many examples about the red ocean strategy. A good one is the Southwest airline in USA. This company is competing very successfully by using the red ocean strategy. They focused on providing a low-cost airline. They could be able to achieve to low costs by follow so many methods for example, using secondary airport further away from the city than the main airport and allowing only online check in and booking plus, they require the customers to pay extras Amongst other methods according to the company’s policy. Finally, let me say if I have tourism company, I will use the blue ocean strategy and keep my own blue ocean strategy alone. In this case, First, I will give the value by focusing on three basic elements: value investing, speed innovation and services like focus on luxury lounges and meals, Second, make my company be different than others by find different ideas with completely new methods. Third thing is effective the strategic. The best way to do that is summed up by my customers.