Recession has hit the market badly and companies are reporting a loss everywhere around the world almost all companies are suffering. The markets are drying and consumers are turning towards cheaper alternatives to satisfy their needs and markets are doing really bad. In such times it becomes essential for companies to look for ways by which they can still make their profits rise high .
This creates a need for companies to come up with something new in markets which help them to tap markets and consumers. This is time for BLUE OCEAN STRATEGY by which a company still make out of this recession time and survive still.
Blue Ocean Strategy is about creating and capturing uncontested market space, thereby making the competition irrelevant. In short, Blue Ocean Strategy is about creating exceptional value for the buyer and compelling profit for the firm executed in a motivating fashion for people around it.
The strategy thus focuses on product innovation and finding of new markets by companies at same time giving them high value at low cost. This gives two way benefit as the customers also are satisfied and company is also make good amount of profit.
Tata Nano launch is the perfect example of such strategy where the company has launched an innovative product in the market at the recession time but still customers will be attracted as it offers a great value to the customer at a low price. The market is responding positively to the new product and thus them strategy of company seems to be working good....
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Nice job done dear.
ReplyDeleteBut I think that the launch of Tata Nano was just a coincidence with the recession time, because of the "Unfortunate West Bangal" case, as it was planned a long time back. Even I feel to the extent that launch of Tata Nano in recession will definitely going to hit their expected sales figures, which they would have expected earlier.
A simple reason behind this is that, still the safety and endurance of Nano on Indian roads has to be tested. Here, from endurance I mean, the capability & performance of the car to breathe at the same pace on long drives, with full weight capacity.
And moreover in recession time people don't like to do much experiments. May be this car will do wonders in foreign markets from starting, but in Indian market, I think it will not be the dream start for the company.
Will see the result.
tc :)
Well yes results are still awaited for Nana as the company has till now, not disclosed the number of bookings that has come initially for the car.
ReplyDeleteThe strategy was the main point of focus and its not just about TATA Nano its for other companies also to follow this strategy and make profits.
Great effort to highlight the process and methods of developement of blue occean strategy. I would like to know about the red occean strategy as well.
ReplyDeleteThank You
Well red ocean strategy is about competing in the existing market and allowing others to compete with you, its just opposite to blue ocean strategy.
ReplyDelete