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Blue ocean strategy’s aim is to develop a new market and developing new demand. The blue ocean strategy is applied by the organisations that hold a strong urge for gaining competitive advantages (Sitinjak, 2018). The strategy is to abandoning the efforts to beat the existing market competitors and formulating a new segment of market that will help the organisation to develop new demands and exploiting the opportunity of new marker expansion.
Uber can implement a blue ocean strategy to turn the non-customers into their potential customers. In this context Uber does not need to compete with the rivals actually, but it will not use the cheaper pricing strategy that may threaten the organisation to become failure to gain the desired business outcomes. The Strong competition of Uber are the other taxi services such as DiDi, Lyft, Bolt , Ola, Yandex. Uber does not need exactly to compete with these market leaders, however; instead Uber has made the services of these transports irrelevant. It can be stated that Uber has already used a Blue ocean strategy that helped the company to utilize the smart phone services like internet, GPS tracking phone calls and others (Anthony, 2019). This has helped the organization to reduce the efforts of the customers to find a transport for any kinds of work.
However, the organisation could implement the blue ocean strategy in different manner. For instance, even after implementing the currently used blue ocean strategy Uber needs to compete with the emerging growing organisation that in future may impact upon the revenue of the organisation as well as its market share can reduce. Therefore, a suggested strategy can be thinking differently to develop a market that can be the potential target to reduce the urge of the organisation to compete with the existing rivals. For instance, like others this organisation also has the soon to b customers, refusing customers and unexpected non customers. This can be considered as an opportunity to the organisation. For instance, the organisation may target the refusing customers to understand how they can be converted into customers. It can be stated that in most of the cases, Uber targets generally the customers aged from 18 to 60 that attend concerts regularly, and travels for the purpose of business. It can be stated that Uber may create a new market by offering cab service only for ill persons.
It seems that this organisation can implement a strategy to develop a 24/7 ambulance service for the persons seeking immediate care. The services that can added on to the new strategy of this idea is to emergency booking of the appointment and ensuring that the individual seeking immediate help may get the opportunity to reach faster to the hospital as well as gets an emergency booking (Orlov, 2017). The service is required to be planned effectively. For instance, individuals having health issues or having a family member that has any health issue may register their requirements and details with the Uber services and when the service is needed the service representative is to come and pick up the treatment seeking individual to the hospital with the prior booking of emergency services.
It can be stated that the ambulance services may not be available due to the inability of the hospitals to support with adequate ambulance services due to increased number of demand. Therefore, this will be the opportunity for the organisation to implement the strategy for ensuring long term growth and generating revenue. It can be stated that in order to successfully implement the strategy, the organisation is required to tie up with the medical service providers such as ambulance service assistance. Apart from that medical equipments are also required to be included into the service such as heart rate and blood pressure monitoring equipment, devices for oxygen deliver, IV pumps, essential medications that are actually needed and prescribed by the doctor to the patient and pain relief kits. In different manner, Uber can redesign the helping kit for the specific issues treatment seeking individuals facing.
The strategy to sustain the business in this manner is to obtain feedback from the customers. It can be stated that customer opinions and feedbacks can be used for redesigning the ambulance set up so that the patient does not face any difficulty. Another strategy to sustain the service is to overlap the services of ambulance. For instance, the ambulance may not have the GPS tracker due to which it can take time to reach hospital within a short period of time (Lauer, 2019). However, Uber can implement or use the GPS system to track the least trafficked area heading towards which it will take the shortest time to take the individual to the hospital at an emergency situation. These are the strategies that Uber could implement to ensure a long term growth and revenue generation.
The unrelated diversification is often achieved through acquisition or merger. It helps and organisation to enter into a completely new market where the organisation offers a dissimilar products from the existing ones to the customers (Richter, 2017).
There are mainly two advantages of unrelated diversification. As mentioned by Boschma (2017), unrelated diversification may help in boosting the efficiency in managing the cash and to allocate the investment effectively. Along with this unrelated diversification may create value through the financial economics. However, the drawbacks of this diversification are the total performance ability of the unrelated businesses may not perform well against the sum of the individual businesses. It stabilises the sales-profit that is highly required for every business.
Yes, Disney is required to pursue an unrelated diversification strategy. The unrelated diversification strategy will help the organisation to provide new and unrelated product lines to the market. It can be stated that Disney is already operating in the industry with a high profit margin. It has vastly implemented related diversification starting from animated series to movie and more. However, unrelated diversification will help the organisation to create a superior value to the customers creating a better competitive advantage. Unrelated diversification strategy may help the organisation to create a new customer base along with the existing ones (Boschma, 2017). Therefore, it may help to assimilate the available market opportunities such as broadening of scope through merger or acquisition to explore the overlooked opportunities.
The most effective unrelated diversification strategy for Disney will be concentric diversification. It is due to the fact that this will help the organization to merge with industries that have technological similarities. This will help them to use their technical knowhow as it is already known that there is a vast technological implementation in the business Disney and it is of their unquestionable capacity to perform within a competitive market. For instance, Disney can offer the new target customers or the existing customers with new video game series. The themes may be kept related to the Disney’s however, to make the customers enjoy real experience tour to the different world of technological recreation; the organization may increase its popularity and customer loyalty through increasing the engagement of the customers. In simpler term, the organization may use their technological knowhow in the improvement of experience of the customers. Introducing 3D video game devices keeping the similar theme such as animations and others will help to gain the loyalty and satisfaction of the customers.
It can be stated that Disney may also adopt related diversification strategies. The major advantages of related diversification strategies include increasing opportunities to share resources to each other. It enables an organisation to use same kind tangible and intangible resources to accomplish the organisational product developmental goal. For instance, Disney can use their already gained knowledge areas upon new kinds of related business; developing new animated series or offering new web series for the children (Boschma, 2016). Penetrating into a new market with the similar kinds of the products may increase the risks to face tremendous competition from the existing rivals. On the other hand, company will not need to invest a cost that is far different from they generate capacity. This will help the organisation to lower the production cost and expand their business opportunities through using the existing resources they have.
Anthony, Kifordu A., F. Igweh, and Agbor Stephen. "Errors of entrepreneur in Nigeria: the blue ocean strategy as panacea." International journal of social sciences and humanities 3, no. 2 (2019): 261-276.
Boschma, R., Coenen, L., Frenken, K. and Truffer, B., 2016. Towards a theory of regional diversification. Papers in Evolutionary Economic Geography, 16, p.17.
Boschma, Ron, Lars Coenen, Koen Frenken, and Bernhard Truffer. "Towards a theory of regional diversification: combining insights from Evolutionary Economic Geography and Transition Studies." Regional studies 51, no. 1 (2017): 31-45.
Boschma, Ron. "Relatedness as driver of regional diversification: A research agenda." Regional Studies 51, no. 3 (2017): 351-364.
Lauer, Thomas. "Generic Strategies, Outpacing and Blue Ocean-Discussing the Validity of Three Strategic Management Theories Using Case Studies from Airlines and Grocery Retail." Theory Methodology Practice (TMP) 15, no. 01 (2019): 57-66.
Orlov, Alexandr K., and Irina Y. Chubarkina. "Blue ocean strategy application in the course of planning and implementation of construction projects in the area of SMART housing and social infrastructure." In MATEC Web of Conferences, vol. 106, p. 08015. EDP Sciences, 2017.
Richter, Ansgar, Monika Schommer, and Amit Karna. "The Performance Effects of Diversification in the Context of Its Decline: A Meta-Analytical Review." In Academy of Management Proceedings (Meeting Abstract Supplement), p. 13813. Academy of Management, 2017.
Sitinjak, Martinus Fieser, Kevin Pramawijaya, and Annetta Gunawan. "ICanStudioLive use of Blue Ocean Marketing Strategy for Value Differentiation." Pertanika Journal of Social Sciences & Humanities (2018).
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