Blue Ocean Strategy by Chan Kim Case Study

The reading exploits the notion that competing in industries that are overcrowded does not sustain or guarantee high performance, and the main opportunity is based on creating blue oceans on a market space that is uncontested. Critical Issues of the Reading The three main critical issues of this reading are a competitive advantage, finding and developing blue oceans, and exploiting and protecting blue oceans. The first issue is a competitive advantage. Many companies and consultants according to the authors mainly focus on developing competitive advantage in competitive industries and in the process ignore the importance of considering developing products for markets that are unexploited (blue oceans) and that guarantee high performance. The second critical issue is finding and developing blue oceans that involves identifying unexploited markets and developing markets and products that can help exploit these niches.

This is s strategic move in which companies are able to create value leaps that are powerful to buyers and the firm. The strategy is effective in unleashing new demand and rendering all competitors or rivals obsolete (Kim & Mauborgne, 2004). Reading 2: iRobot: Finding the Right Market Mix? Executive Summary The case study mainly discusses iRobot that began in 1990, and which is among the primary companies that were involved in the introduction of the robotic technology in the common consumer market. The author of the article discusses the market mix of iRobot that covers the home care industry and other markets that involve contracts with the American government in the line of production and supply of military robots. The article brings to light the market differentiation of this company, diversification, and the importance focusing on the development of more blue oceans to face the competition that has been on the rise.

The ability to develop differentiated products that are able to meet consumer needs has helped the company generate high sales and revenue since its establishment. The second lesson learned from the case studies is that companies should consider establishing a diversified market with the aim of generating sales from different ends. Reliance on a single market can limit sales due to issues such as competition and introduction of alternatives, issues that are common in the global business field. The third lesson is that global companies should have a continuous strategy of developing new markets as competition increases due to varying factors. This strategy is an effective way of maintaining high productivity in the greatly advancing markets and business environments. C. , & Mauborgne, R.