Question
What did you learn from the Blue Ocean Strategy Analysis case analyses that you can apply to the Amazon company? What context differences are important
- What did you learn from the Blue Ocean Strategy Analysis case analyses that you can apply to the Amazon company?
- What context differences are important between the case example and Amazon? What assumptions do you need to make in order to use the concepts appropriately?
- Given Amazon, what concepts, tools, and readings from other resources are most relevant to helping guide how you might recommend improving Amazon? Why and how are they relevant?
Reference - Apple.com, case analyses.
The telecommunications industry that focuses on phones is a competitive industry with companies fighting for customer sales. Some of these companies are utilizing a "red ocean strategy" method that observes the standards in the industry. This field may see other competitors differentiate themselves with new products that make them stand out in the industry. The "red ocean strategy" revolves around industry competition between established businesses. This method may entail overcoming rivals and implicating the industry's commoditization - contending primarily on cost (Brugha & Varvasovszky, 2000).
While the "blue ocean model" indicates that the products should be increasingly technologically advanced and be lower priced to stand out. The "blue model oceans" is relevant when it is a chance for a company to earn higher profits in the face of less competition or new opportunities. The strategy is designed to seize new customer demand and give the competition a difficult way to keep up. For instance, introducing new superior products, features and services can accomplish this goal (Jepsen & Eskerod, 2009).
Substitution
Some of these companies vying for profit in the telecommunications industry may offer products like Apple's but could be cheaper and of higher quality. However, Apple has been able to adapt and constantly introduce innovative products. Even though other companies have similar effects, Apple can maintain a competitive advantage. The "blue ocean strategy" could be used if other existing or new companies can develop products like Apples at lower prices and similar quality standards. For instance, if one of these companies can creatively create new technologies such as 3-d technology and be employed faster, Apple could lose its advantage in the industry (Brugha & Varvasovszky, 2000).
Bargaining Strength of Suppliers
The pricing and availability of new raw materials are dependent on the suppliers. For instance, some of the supplies that Apple uses are located internationally, thus allowing the company to use a material that may be purchased at a lower price. Conversely, suppliers may see this as an opportunity and leverage to make demands of Apple. For example, the influence can revolve around raising costs or demanding other benefits (Brugha & Varvasovszky, 2000).
Bargaining Strength of Buyers
Apple has done a great job developing products that customers enjoy and are eager to buy, but some other companies have done the same, and now customers have choices. However, some customers are willing to wait and only purchase from Apple, akin to a cult-like mindset. This mindset leads to customers owning multiple Apple products due to brand loyalty (Brugha & Varvasovszky, 2000).
Competition
Apples are competitive but also have a lot of competition in the telecommunications/technology industry. For instance, Samsung is increasingly producing software and hardware, making a competitive force. Apple has surpassed other computer makers such as Dell as the number one computer maker. The company has also spent more money on research and development, putting it on par with competitors such as Google and Microsoft. For instance, in the electronic media and phone-based, Apple has competed with Amazon, Samsung, and Google. Apple has leveraged its creativity and innovation to remain competitive by challenging the status quo (Brugha & Varvasovszky, 2000). This is a strategy that works for the company.
Opportunities and Threats
Apple has managed to leverage its opportunities and faces many obstacles in the smartphone space. Figure 5 presents some of these opportunities and threats. Apple should analyze how it handles and interacts with opportunities and threats since competitiveness is closely related to success. For instance, Apple could expect new companies providing products employing a "blue ocean strategy" to challenge it and become dominant in the smartphone industry. Moreover, some of these threats can be substituting products that can take away from Apple's market share. Apple should increase its network of customers and suppliers to cushion some of the substitution and new competitors (Gupta, 2020).
Apple creativity allows it to go into the smartphone industry. Apple can grow if it
manages its distribution network carefully introduce green products, smart wearables technology, and artificial intelligence. The advantages of these tools are that they will allow it to reach more customers and increase market share (Gupta, 2020). Green technology will enable the company to attain the needs of stakeholders and customers, and artificial intelligence will allow it to lead in the smartphone industry.
Moreover, Apple is facing competition in the smartphone industry. It also faces outside threats such as Covid-19 - a global epidemic. The other increased competition comes from Samsung, Dell, and Google. Furthermore, Apple's chain supply must be distributed with the worldwide epidemic and content with shortages and shifts of economies and products globally. China produces most of its components in China, putting the company in danger of not being apple to access its supply chain (Brugha & Varvasovszky, 2000). However, adaptive organizations can survive economic shifts that may impact the company and the economy of countries.
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