Blue Ocean Strategy: An Analysis of Netflix (Research Paper Sample)

Blue Ocean Strategy- An Analysis of Netflix
Executive Summary
The report showcases the importance of the Blue Ocean Strategy and its impact on Netflix. Moreover, it also depicts the plethora of strategies that Netflix has implemented to petrify its blue ocean.
Blue Ocean Strategy is among the most significant strategy which has helped various companies in enhancing their position in the market. It enables companies to approach those sections of the society where competition is minimal via providing quality and unique services at a reasonable price. Netflix is one such example of the success of the Blue Ocean Strategy. Now the main question is, how did Netflix successfully implement the blue ocean strategy and what were the strategies, Netflix adopted to shift to Blue Ocean. Hence, in the performed analysis we have critically discussed the strategies and measures taken by Netflix to shift and solidify its Blue Ocean.
Introduction
Netflix is an American subscription service and Production Company that was first launched in the year 1997. The company belongs to the film industry and is focused on providing on-demand streaming for movies and other television shows. It is observed that Netflix provides educational shows as well which as consequence contributes to enhancing the overall knowledge of individuals. Although the education industry does not hold a large section of the market it has a market of 1 trillion dollars. Moreover, it is to be noted that the music industry of the world is growing dramatically. The revenue of this sector has grown from 18.5% in the year 2021, which was the highest level recorded since 1990. Moreover, it is observed that the demands for streaming platforms are increasing at a high pace as more than 232 million people in the USA were indulges in watching live streams or downloaded videos in the year 20220 across all devices. In regards to the above discussion, research is performed to assess the concept of blue ocean strategy and its significance. It is observed that with the implementation of the Blue Ocean strategy, entities strive to offer quality products in the market, which is free from competition. In regards to this concept, the market strategy of Netflix is discussed. The reason behind using Netflix for assessing this strategy is that it is one of those companies, that was able to sustain its position in the market via successfully implementing the blue ocean strategy. Furthermore, the article also describes the strategies Netflix has taken while shifting from Red Ocean to Blue Ocean. The article also compares the strategy implemented by Netflix and its competitors as well as the key points which have enabled Netflix in out extinguish its competitors. Moreover, the research will also discuss the slight innovation which Netflix can do to retain itself from shifting from Blue Ocean to Red Ocean as it is very much essential for entities to be creative to solidify their blue ocean.
Blue Ocean Strategy
The Blue ocean strategy is among the most significant strategy applied by entities to enhance their position in the dynamic market. It can be said that it is a market where the entities do not face any challenges in regards to competition as there are very less competitors. Moreover, it is observed that this strategy is mainly focused on searching for business ideas where there are very few entities and where there is no price competitiveness. Furthermore, it is to be noted that the Blue ocean strategy can be applied to any type of business i.e. it is not limited to any particular sector of the business (Barsch et al., 2019).
It is observed that business enterprise looks for those markets which are having enough growth potential and fewer competitors i.e. “Blue Ocean” because it helps the entity in enhancing their growth potential and also enables them in sustaining their competitiveness in the dynamic market (Rofiqi and Kolis, 2020). Hence, it can be said that with the implementation of the blue ocean strategy, entities can enhance their profit and income by introducing products with more advanced features in that section of the market (Konstantinovna, 2021).
Critical Analysis of Blue Ocean
(Source: https://sahaysdailypost.com/blue-ocean-strategy/)
In the present scenario, it is observed that every enterprise has to undergo a lot of pressure and they tend to do everything to sustain their competitiveness in the dynamic market. Moreover, it is noticed that the entities have to undergo a lot of challenges and threats regarding price competitiveness. However, this type of situation generally occurs, when entities are required to work in those markets where competition is very high. This type of saturated market is also known as the Red ocean (Ramli, 2020).
It can be comprehended that the term Blue Ocean is focused on helping the entity in establishing a market that is free from competition and is separated from other markets. Hence it can be said that the term blue ocean is the opposite of the struggle which the entities are entitled to do in the red ocean market to sustain their position as there is imperfect competition in those saturated markets. Some scholars including W. Chan Kim have claimed that the blue ocean strategy is required when the overall demand for a particular task or product is less than the overall demand for that service or product in the market (Rebbouh, 2019). Moreover, they have also depicted that, in the present scenario, the demand for the blue ocean strategy is gradually increasing and will be more demanded in the mere future. Hence, it can be said that the blue ocean strategy depicts the high quality and unique products offered by entities at very reasonable prices, thereby making competition listless (Massoudi and Ahmed, 2021).
Why Blue Ocean Strategy?
Blue Ocean Strategy is now a day playing the most significant role in regards to enhancing the competitiveness of the company. It enables entities to work in an environment where there is huge growth potential and there is no competition. It is to be noted that with this mindset, entities are striving to enhance their profit and position by formulating new unique, and superior products rather than competing with other entities concerning survival in the saturated market (Segovia, 2021). Shifting from "Red Ocean to Blue Ocean" contributes to changing the overall focus of entities from "Market competing" to "Market Creating", which as a consequence helps the company in enhancing its growth. However, it is to be noted that entities are required to perform a plethora of steps when they implement the blue ocean strategy (Danial et al., 2020).
Following are the steps, which entities are required to consider before implementing the blue Ocean Strategy
* It is very much essential on part of the entity to select the right market and point to start. Moreover, the entity must formulate the Blue Ocean Team to implement the blue ocean strategy perfectly and efficiently.
* Furthermore, in the next step, they are entitled to discover the hidden challenges, market size, and growth potential of the market in which they want to enter.
* In addition, before implementing the blue ocean strategy, it is very much essential on part of entities to restructure the market boundary as well as formulate alternative blue ocean strategies for a particular situation.
* At last, in the final step, entities are required to select the best Blue Ocean Alternative as per the