Part 1: Go Online And Research Blue Ocean Strategy ✓ Solved

Part 1please Go Online And Research Blue Ocean Strategy Th

Part 1. Please go online and research Blue Ocean Strategy. There is the original article titled Value Innovation: a leap into the blue ocean by W. Chan Kim, which is a great starting point to begin this semester. There are also numerous websites covering this topic and thus plenty of information. There are more current articles on this topic that you may want to review and add to this discussion. Share your sources with your discussion mates on this and each of the other discussion topics upcoming this semester. This concept fits well with what you will be doing in Capsim. Participate often and enjoy this discussion!

Part 2. An age-old question is "Does structure follow strategy or does strategy follow structure?" The new, successful firms appear to be online driven and not really interested in brick and mortar. Amazon is the obvious example. Does the rapid growth of Amazon and similar firms put pressure on Walmart and Target, etc. to change or can they still survive without creating online revenue streams to go along with their traditional strategy of storefronts? Is Amazon a true Technology company? They never really developed or wanted to develop a brick and mortar strategy. Is ecommerce, in all its forms, the Blue Ocean of today (soon to become Red)? Is this truly the future, the destiny of retail and many other industries? These are just examples of threads/directions that you can discuss along with the many others that you all will develop over the time frame this board is open.

Paper For Above Instructions

The concept of Blue Ocean Strategy, introduced by W. Chan Kim and Renée Mauborgne in their seminal work, is pivotal in understanding how companies can achieve sustainable growth by navigating away from intense competition in saturated markets—termed "red oceans"—into uncontested markets, or "blue oceans." The original article, "Value Innovation: A Leap into the Blue Ocean," emphasizes the importance of value innovation, which is the simultaneous pursuit of differentiation and low cost, making competition irrelevant (Kim & Mauborgne, 2004).

Critical to the Blue Ocean Strategy is the creation of new market spaces or 'blue oceans', where competition is negligible. This requires companies to shift their focus from outpacing rivals in existing markets to creating demand in untapped markets. For instance, Cirque du Soleil redefined the circus industry by combining elements of theater and circus, creating an entirely new entertainment genre that attracted audiences willing to pay a premium, thus illustrating a successful blue ocean shift (Kim & Mauborgne, 2004).

The discussion around the evolution of retail in the context of blue ocean strategy is particularly relevant today, especially with the rise of e-commerce as seen with Amazon. The traditional retail landscape has shifted dramatically with the advent of online shopping, pushing companies like Walmart and Target to reconsider their long-standing brick-and-mortar business models. Amazon epitomizes the successful adaptation to an online-driven marketplace, efficiently utilizing technology and logistics to offer unmatched convenience and pricing—effectively operating in a blue ocean.

The question "Does structure follow strategy or does strategy follow structure?" encapsulates the ongoing debate about organizational design in response to strategic direction. Rapid advancements in technology have enabled firms to operate in a more agile manner, where digital-first strategies often dictate structural decisions. For Amazon, its structure has always been deeply integrated with its strategy to avoid the traditional retail model. Instead, their focus on online sales channels has allowed them to dominate as a technology company rather than simply a retailer (Hitt, 2020). This leads to the consideration of whether e-commerce can be viewed as the blue ocean of today, destined to become a red ocean as competition intensifies.

To further illustrate this shift, consider how other e-commerce businesses, such as Shopify, have enabled traditional retailers to adapt to online sales. These platforms provide an avenue for businesses to enter the e-commerce space without the significant investments typically required for technology and logistics, thus democratizing access to online selling opportunities. This trend suggests that as more players enter the e-commerce market, the blue ocean may indeed start to become red with competition (Porter, 2008).

Moreover, the COVID-19 pandemic has accelerated the shift towards e-commerce, forcing businesses to adapt rapidly or face obsolescence. Essential businesses that developed an online sales presence thrived during lockdowns, while those that remained reliant on physical foot traffic faced severe challenges (Laudicina, 2021). This phenomenon reinforces the necessity for traditional retailers to innovate and explore new market opportunities to remain relevant.

The ability to harness technology and innovate continuously has become crucial for survival. Companies now must adopt a mindset of agility and flexibility to navigate the rapidly changing business landscape. By doing so, they can create unique value propositions that resonate with today’s consumers, ultimately carving out their own blue oceans amidst fierce competition.

In conclusion, the examination of Blue Ocean Strategy within the context of modern retail illustrates the significant shifts that the market is undergoing. Companies must prioritize innovation and adaptability to create value in untapped markets, avoiding the pitfalls of saturated competition. As businesses navigate these changes, it is essential to consider how technology will continue to shape strategy and structure, especially in relation to e-commerce, defining the future of numerous industries.

References

• Kim, W. C., & Mauborgne, R. (2004). Value Innovation: A leap into the blue ocean. Harvard Business Review.
• Hitt, M. A. (2020). Strategic Management: Concepts and Cases. Pearson.
• Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard Business Review.
• Laudicina, P. (2021). The growth of e-commerce during the pandemic. McKinsey & Company.
• Reeves, M., & Deimler, M. (2011). Adaptability: The new competitive advantage. Harvard Business Review.
• Chesbrough, H. (2007). Business model innovation: It’s not just about technology anymore. Strategy & Leadership.
• Mintzberg, H. (1994). The Fall and Rise of Strategic Planning. Harvard Business Review.
• Christensen, C. M. (1997). The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail. Harvard Business Review Press.
• Raman, A. (2018). E-commerce and its effects on traditional retail. International Journal of Business and Management.
• Wirtz, J. (2016). Services marketing: People, technology, strategy. World Scientific Publishing.