How blue ocean strategy is targeting a new market


Problem: In the book a blue ocean strategy is targeting a new market where competition is not yet present (David et al. 2020) However a blue ocean strategy can be created from a red ocean if the strategy is expanding an existing industries boundaries. Consider the circus. Who hasn't been to one with the big tent, elephants and performers? Cirque du Soleil expanded that market by combining performing arts with a circus like act. No other company has come close to being competitive in this expansion of boundaries. Another example I found was AMC. The typical movie theater experience was stadium style seats, maybe a cup holder and the big screen with surround sound. AMC expanded the boundaries of going to the movies experience with larger chairs, rockers, recliners, in movie food service with a complete meal, larger screens, better sound and more convenience for purchasing and reserving specific seats. Few have come close to offering this revitalization to "going to the movies" which has kept AMC at the top of their industry. Can you think of any other industries that have expanded beyond their industry creating a blue ocean?

 

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Marketing Management: How blue ocean strategy is targeting a new market
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