Question

Do you agree or disagree that strategists need to shift their focus away from direct competition and instead towards the concept of blue oceans? Explain your answer with real-world examples and be sure to provide justification for your point of view.

Answer 1

Ans 1. Yes I agree with the statement, there are some points which represent my views on the negative aspects.

Direct competition is a platform where all the sellers are selling the goods on the same market profile, where buyers and sellers have complete knowledge about the quality and quantity of the goods and the related price.

Direct competition is a strategy where all the information related to the market is available for both buyers and sellers. Here, sellers are able to earn only normal profit both in the short run and in the long run and the demand curve is perfectly elastic in this market because of the availability of various substitutes in this market.

On the other hand Blue Ocean Strategy is related to a market for a particular product where there is very less competition or no competition. A Blue Ocean Strategy is existing where there is a chance of higher profit and the competition level is irrelevant.

I agree with the statement that sometimes Blue Ocean Strategy is really helpful in making the large market share for a particular product for example in the launch of any new device by Apple all the substitute sellers are not able to compete with the product offered by the Apple because of its quality and unmatchable features.

But sometimes when there is a global competition of a particular good like agricultural commodities in real examples then there is no possibility of a Blue Ocean strategy because every product is available everywhere so in this concept the perfect competition is only the solution.