Blue Ocean Company
Blue Ocean Company is a technology company offering a wide range of commodities to customers. Blue Ocean Company needs to find strategies to govern and help them retain its market position and remain afloat in the industry. Given the data collected in the report, the market forecast suggests allocating more resources to the examination of the existing competing market in order to modernize both Blue Box and Red Box’s functionality and appearance and to enhancement of the marketing strategies for both products.In only 3 hours we’ll deliver a custom Blue Ocean Simulator (BOSS): Efficient Marketing Strategies essay written 100% from scratch Get help
In order to define efficient strategies for the firm, it is imperative to outline the fundamental strategy to present a direction for future development. According to Anwar & Hasnu (2017), the past few decades are associated with the operation of three primary business strategies: prospectors, defenders, and analyzers. Considering the fact that Blue Box is a relatively new product presented by the firm and the Red Box is a more recognized product in the market, different strategies should be applied to the products.
The defender strategy is more relevant for Red Box, as the company tends to benefit from having a steady product in the market that could compete on the basis of quality, customer loyalty, and trust. The prospector or flexible strategy is relevant for Blue Box, as the product may be modified due to its novelty in the market. The specific strategies for the products to stay afloat in the market include but are not limited to:
- Customer loyalty enhancement. For Red Box customers, especially for the 36+ segment, the product has already become more or less trustworthy and worth purchasing. However, the increasing competition in the market may catalyze a change in customer preferences. Recent studies claim the existence of e-commerce loyalty programs to drive customers’ purchase behavior (Alshurideh, 2019). The introduction of a loyalty program for the customers may be a beneficial strategy for target market retention.
- Flexible marketing. The reports show that the products vary in terms of target customers, with the 36+ segment being the most interested in Red Box and Blue Box being proportionally popular with all the segments. For this reason, it is of paramount importance to redefine the channels of communication for both brands, choosing more conventional media for RedBox and more modernized channels, such as TikTok or Discord, for the implicit marketing of the product.
- Examination of the competing market. With competitor companies investing finance in the launch of the new versions of their products, Blue Ocean should allocate resources to market research and the definition of opportunities and threats presented by competition in order to modify their strategy and stay ahead of the competition.
Pro Forma Financial Statement
Any firm requires a business strategy to get prosperous and overcome market competition. Pro forma financial statements, which stand for the method of calculating financial outcomes by means of presumption and projections, are extremely successful in terms of building a strategy (Tuovila, 2021). Business strategies are powerful tools to help a firm reach its goals and define given methods and techniques needed to take the firm to the next level. There are reasons why a business strategy is essential such as planning, efficiency, control, strengths, and weaknesses. These reasons are important because they help the company lay its plans and ways to succeed (Smith, 2019). The following pro forma is a future layout of how Blue Ocean may follow to improve its functionality.
|Year 45||Year 46||Year 47||Year 48||Year 49|
|Cost of goods sold||361,830||378,071||394,311||410,552||426,793|
|Contribution after marketing||287,766||271,835||255,904||239,973||224,042|
Alshurideh, D. M. (2019). Do electronic loyalty programs still drive customer choice and repeat purchase behaviour? International Journal of Electronic Customer Relationship Management, 12(1), 40-57. Web.
Anwar, J., & Hasnu, S. A. F. (2017). Strategic patterns and firm performance: Comparing consistent, flexible and reactor strategies. Journal of Organizational Change Management. Web.
Smith, E. M. (n.d.). Bureau of Labor Statistics (BLS). Encyclopedia of Health Care Management. Web.Academic experts
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Tuovila, A. (2021). Pro forma. Investopedia. Web.