Blue Ocean Strategy As an Example of a Strong Business Strategy
The decision to implement blue ocean strategy was chosen with the purpose to emerge and develop a strong business strategy that would remain profitable in the future. In particular, blue ocean strategy was implemented with the attempt to avoid the risks of red-zones competition. It is evident that this approach also assures better profitability. To obtain success with this goal, it is necessary to assess potential value of the product and consider proper pricing techniques. Taking into account that competitive strategies are irrelevant in blue ocean approach, the value of the product is a core concept that should be thoroughly studied. Therefore, endeavoring to anticipate the level of the future demand, this business development project concentrates on the research of the demographic situation and the major factors that affect the demographics. Besides, it studies the current patterns in pricing of the footwear and evaluates how it was changed during the last decades. In addition, the research is oriented towards the rapid technological growths because it is critically important to comprehend and successfully implement the up-today means of business operation. The exploration of the above-mentioned aspects allows developing and enhancing the value of the product and setting relevant prices. The decision to implement a gradual increase in prices is dictated by the scrutiny that minimizing prices fits more the Porter’s model of competition. Nevertheless, blue ocean strategy does not presume competition; therefore, attracting new clients with low prices is irrelevant. At the same time, it would inappropriate to set high prices before a considerable clients’ base is formed because the value of the blue ocean product should be at first tested and appreciated. While thinking what could have been done differently in terms o of the blue ocean notion, one may suggest the integration of digital technologies into sport clothes. For example, the hoodies and shoes can be equipped with interactive displays that reveal the weather conditions (such as temperature, humidity, atmospheric pressure, the possibility of a rainfall, wind strength and direction). Another option is the display that would show vital signs of one’s organism. What is more, an ideal variant is the adoption of both kinds of measurements (weather and health conditions).
To apprehend the value of the product and relevant possibilities of its enhancement, one should study the demographic tendencies, such as expected population growth, economic growth, the level of poverty, health care and education, and others. This knowledge helps in targeting market evaluation. Therefore, the relevant information was retrieved from the Work Bank official website. What is more, it is important to learn the current income tax rates, as well as personal allowances in order to access the return of investment. Moreover, one is supposed to survey the former, current and prospective economic indicators with the purpose to identify the general economic patterns and their effects on blue ocean business. For instance, this research studied the apparel manufacturing of Canada. Similarly, the exploration of the interbank rates, official interest rates, and market rates of various states helps to understand what market is more important in terms of profitability. This information is revealed by The Financial Times. Besides, the studying of sport clothes’ branding, pricing and retailing (including e-retailing) provides a comprehensive picture of what is the product value, how it can be increased, and how the products can be retailed. To obtain this information, numerous Internet sites have been surveyed. By scrutinizing what other relevant areas could have been studied, it is appropriate to point to such aspects as business location, workforce and sustainability with the local community and its environmental policies. The choice of business location should be predetermined by cost/loss expectations endeavoring to lower potential expenses. Moreover, the choice of a location of the main office interrelates with the need to attract the workforce. In particularly, one should consider the area with the enough well-trained workforce. Furthermore, the manufacturing should be organized in accordance with environmental sustainability, and the cultural peculiarities of the community in which it emerges should be taken into account. Finally, in order to create an international net, it is necessary to decide what states would be targeted in the first place and on what stage. For instance, whereas, this project suggests that US customers should be introduced to the proposed sport products in the first place, it is also important to consider the markets of other states. Besides, the idea to consider climate peculiarities of different regions is brilliant; thus, it is necessary to develop a business plan that would propose seasoned sport clothes to proper customers. It presumes that the density of the material can be calculated and incorporated into the general plan.
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The main insight acquired thanks to the research and the Major Project is developing a business plan is a multifaceted and multitasking approach, each component of which should be meticulously surveyed, assessed and comprehended. This approach allows elaborating and implementing efficient techniques. Moreover, the development of a business that is expected to be operated in a blue ocean zone is an essential way to succeed in the contemporary business world. The main difference between competitive strategies and blue ocean strategy is that the latter is reported to be more profitable. Besides, the latter does not presume such competitive strategies as differentiation or low costs, since it is supposed to enter the market by creating a new, free niche for further growth and development. In addition, in order to start a business, one should take into account the demographics, cultural peculiarities (attitudes, traditions, dimensions), location, as well as availability of the workforce. Furthermore, choosing the means of advertising and retailing, it is necessary to consider the Internet as one of the main ways to conduct a business. Finally, pricing is a crucial technique. In the case of blue ocean strategy, whereas, a product is supposed to be developed into an easily-recognizable brand, it is more appropriate to consider the higher prices than the low ones.
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Undertaking the MBA program provides theoretical and practical knowledge in the areas of entrepreneurship, helping to adopt and implement the concepts of strategic and project management. In addition, it introduces the web strategies and their meaning in the modern business world. Moreover, the MBA program educates how to conduct business in terms of cross-cultural relations, which is especially relevant while targeting the offshoring areas. It is also useful for better understanding of cultural attitudes of the stakeholders. Furthermore, this course gives essential knowledge about corporate social responsibility and corporate information strategy, which engages a company to conduct a business in accordance with business ethics. Besides, the MBA program reveals the concepts of financial and investment management, as well as managerial accounting.
Conducting a research for this business plan provides the insight that numerous variables predetermine the current market, and thus, the demand needs to be thoroughly studied before entering the market. In particular, the demand is predetermined by different economic, political, cultural and individual issues and tendencies. There are also such variables as time and location that are also critical for a successful business and, therefore, should be taken into account.
By uniting together the knowledge obtained thanks to the MBA program and those gathered in the process of research, it is appropriate to deduce that the process of business planning is rather challenging. It requires considering lots of information, which is supposed to be implemented in a way that guarantees the lack or absence of competition and decent profitability. This goal is supposed to be accomplished in terms of economic and cultural globalization with the purpose to remain in frames of business ethics.
After critically evaluating the approaches that were implemented in this research, it is possible to conclude that creating blue ocean strategy using the samples from the red zone areas (no matter how successful those brands became) is inappropriate. Specifically, it means that new strategies are being developed with the old way of thinking. For instance, the assessment of Nike’s performance is poorly relevant because this business orients its performance towards the competition with other famous brands. Further, it means that Nike is a successful competitor in the red ocean. It implements the differentiation competitive strategies in order to remain competitive and prosperous. Meanwhile, blue ocean strategy suggests the usage of inventory and creativity. In its turn, applying inventory in a business world with the aim to create qualitatively new products and/or services suggests being a pioneer in a certain area. The comprehension of this logical chain between blue ocean strategy, inventory and pioneer is crucial for successful business operation in the contemporary business world. It eliminates the need to compete and enhances the likelihood of financial prosperity.
While undertaking the research, collecting valid and important information can rightfully be considered as the main challenge. For instance, the credibility of sources should be evaluated, and the unbiased approach of data representation should be considered. Further, the sources should be up-today. While criticizing the process of research, it is appropriate to recommend interviewing the Internet users from different states with the purpose to gain their opinions regarding the proposed sport products. In particular, it would be of great importance to know the views of potential customers regarding seasoning differentiation of the hoodies and shoes, implementation of the above-mentioned digital techniques, coloring, pricing, and other important matters.
The section of feasibility is the main difficulty of the Major project. The relevant concerns beget uncertainty arousing the questions like what the best way of retailing is, what the best way of product positioning is, what the real needs of customers are, and other crucial questions. This scrutiny leads back to the necessity of conducting a quiz with the purpose to obtain valid information.
One of the core academic ideas is the necessity to adhere to the corporate social responsibility. First and foremost, it means that the Green Gring Bang hoodies and shoes should meet the general quality standards. What is more, it requires launching an effective recruitment process that would help to form a staff trained to be oriented towards the customers’ needs. Furthermore, business ethics engages a company to construct strong positive reputation and spread a positive word of mouth. By advertising its ethical approaches to conducting a business, its owner(s), simultaneously, enhances the values of the produced goods and services. In its turn, this approach assures better profitability that allows a certain business to maintain its financial responsibility towards investors and employees.
It is also important to consider the materials, which are supposed to be used for the production of these sport clothes. Firstly, all materials must be safe and eco-friendly. Secondly, it is also necessary to adhere to the manufacturing processes that do not contaminate the nature. In these terms, one should choose the proper place of manufacturing and relevant techniques. Besides, to save the excessive consumption of resources, it is appropriate to use recycling techniques and the alternative means of energy.
Apart from that, the modern world requires demonstrating the loyalty towards the community not only by means of adhering to the eco-friendly programs, but also through the realization of company’s philanthropic responsibility. Philanthropic responsibility presumes doing something for free, which, naturally, implies greater expenses. To avoid exorbitant expenses, a company should find the way(s) to maintain philanthropic responsibility without violating the financial one. Undoubtedly, it can become especially challenging for a young, developing company. The salvation presumes the simple truth: people are fond of freebie. Given the fact, it is important to arrange as many free services as possible. For instance, in a case of the Green Grin Bang, it would be appropriate to provide a free consultation of stylists. Going further, the consultations of fitness trainers and nutritionist are a great approach to advertise a new business, attract new clients, simultaneously, maintaining philanthropic responsibility for limited expenses. In particular, the above-mentioned experts can be encouraged to give free consulting in exchange for a free hoodie or shoes. Needless to say, these specialists may agree to give free advice just because it is another way for them to promote their businesses (after all, it is how blue ocean strategy works).
The objectives of the Major project include learning and training goals, which, I consider to be successfully achieved. Moreover, the Green Grin Bang is a decently developed business plan that can be used as a standalone project after minor corrections. Besides, it can be integrated by a company as a part of general business aspirations. Further, the elements of the Green Grin Bang business plan can be utilized for the development of similar sport products.
An important finding is that targeting the US and the UK markets does not require price differentiation. Despite this fact, one should understand that certain pricing techniques are relevant and even highly important. For instance, a company can implement smart pricing by setting different prices in different locations in accordance with the buyers’ solvency. Another strategy, price lining, can be used to reward the loyalty of regular customers.
Besides, this business plan accentuates the significance of inventory and creativity while implementing blue ocean strategy. The right adoption of this approach in sport clothes manufacturing can be rather profitable. For instance, presumably, many people would be interested in finding new ways of practical application of their hoodies. Undoubtedly, it considerably increases the value of these commodities.