Question: Does the organization that you are using for your final paper use a blue or red ocean strategy? Please explain your reasoning. Microsoft Elements of
Does the organization that you are using for your final paper use a blue or red ocean strategy? Please explain your reasoning. Microsoft Elements of both red ocean and blue ocean strategies
Red Ocean Strategy:
st step:
A Red Ocean Strategy is defined as competing in an existing, already competitive market, in which companies compete against each other to outperform rivals and capture a more significant share of the existing demand.
Microsoft's Traditional Software Market: Microsoft's Traditional Software Market: Microsoft's firstline product was Windows OS and the Office Suite Word Excel, PowerPoint operating in a red ocean, already overcrowded and highly dominated by established competitors, who focused on continuing outcompeting rivals using price advantage, bundling, and integration.
Examples: Windows OS vs Apple's MacOS or Linux and Office Suite vs Google Docs.
Competitive Strategy: Aggressive marketing and innovation in the user interface design. Also, providing a bundled product and compatibility with other platforms are considered essential features.
Gaming Console Market Xbox: Microsoft's Xbox directly competes with Sony's PlayStation and Nintendo's gaming systems, making this market a red ocean as all three players vie for market share.
Example: Xbox vs PlayStation.
Blue Ocean Strategy:
st step:
A Blue Ocean Strategy focuses on creating a new market or industry so that competition becomes irrelevant. Companies implementing this kind of strategy innovate to open new markets and, often, are first movers as leaders in this new market.
Microsoft Azure Cloud Computing: Microsoft has transitioned to a blue ocean strategy. When Microsoft forayed into cloud computing, the field was still an emerging market with big competitors such as Amazon Web Services AWS and Google Cloud. However, what helped differentiate Microsoft's Azure from others was its hybrid cloud capability for example, Azure Stack where companies could leverage both onpremises and cloud computing capabilities. One aspect of this was tapping a growing demand for cloud services and moving into a rather underpenetrated space with relatively few competitors for new market space.
Example: Hybrid cloud solutions by Azure were in demand among companies that needed an onpremisescloud infrastructure mix.
LinkedIn Acquisition: Another example of the blue ocean strategy is Microsoft's acquisition of LinkedIn. Even though LinkedIn had been the best professional networking site, its acquisition would allow Microsoft to combine its business tools with Office and Dynamics with the immense professional network of LinkedIn, creating something unique. By doing so Microsoft found a space professional networking that was not too hotly contested by the players in the software industry.
Example: LinkedIn is an emerging market space in which professional networking is hybridized with Microsoft's enterprise software.
Game Pass Subscriptionbased Gaming: Microsoft developed a new business model in the gaming world. In Game Pass, the users pay for access to hundreds of games in return for a monthly subscription, which is somewhat like how people pay for access to their favorite Netflix programs instead of buying them individually. As far as Game Pass is concerned, it creates a new demand for games beyond copying game copies.
Example: Game Pass revolutionizing the game market from ownership to access.
Red Ocean Strategy: Microsoft has traditionally enjoyed Windows OS the Office Suite, and the Xbox, which are always part of a market where quite a few established players operate. In this case, its approach has been outcompeted through better offerings or a higher market share.
Blue Ocean Strategy: Microsoft has adopted the Blue Ocean Strategy, entering relatively untapped or emerging markets. From this perspective, AzureCloud Computing, LinkedIn professional networking and Game Pass subscriptionbased gaming are examples of how Microsoft created new demands and reduced direct competition, making it a blue ocean strategy.
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