Verizon wireless services and the blue oceans strategies
Blue Ocean Strategy assists in building a traditional competitive strategy for an organization by eliminating limitations brought about by excessive focus on value and profit. Blue Ocean Framework is a framework that is mainly innovative oriented which means that it focuses on all areas that contribute attaining consistent innovation. The framework is a 6 path process that focuses on finding solutions to the most common challenges in an organization and these include: Industry, analysis of strategic group, looking across the chain of buyers, understanding complementary services and offerings, looking across functional appeal for buyers and looking across time (Kim & Mauborgne, 2005).
Path 1- Industry
The first step in gaining competitive advantage or attaining uncontested market is attaining stability in the industry. Since issues such as price elasticity and congestion may interfere with the company’s position in the industry, it is essential to concentrate in more than one industry. For instance, Verizon Company is mainly concentrates on bettering their position in the communication industry; this is done by continuous marketing of their broadband services, data services and wireless internet. According to the company this products will assist in improving communication in the companies that purchase them as well as improve social relationships of their customers. However, Verizon Company can change their marketing strategies to focus on using these products to improve international trade which facing language and time challenges. It can also market the products to be essential in improving online payment or e-banking. To achieve this diversity, Verizon can venture in the manufacturing and banking industry. By doing so, the company will widen its target market and further work towards attaining uncontested market.
Path 2- Working across strategic group
Working across strategic group will allow the company weaken competition or at least handle competition better. Verizon company main strategic group are other large communication companies which concentrates on marketing on international market. Verizon can change this perspective and include the small markets. Verizon main customers are corporations and other businesses which use Verizon products for commercial markets. While changing the strategic group the company can focus also on single or individual customers. Ensuring that their products are easily accessible to individual customers will also improve customer royalty and satisfaction.
Path 3- Diversifying chain of buyers
After the Verizon has engaged different strategic groups they should also improve their products to encourage different buyers. To attract a wider chain of buyers Verizon can include products of different prices, size and speed incase of the wireless product. Providing a variety of products to the market will attract a wider range of customers from different regions. Customers require different items and the factors that may be essential to some may not be to others. For instance, Verizon’s products such as data services may seem expensive to individual customers but the company can provide the product in portions whereby customers purchase the package they require.
Path 4-looking across complementary services and offerings
Most industry such as the communication industry tends to focus on the same products and services. Verizon such like other communication companies focus on the internet and data related products, but the company can look at other contemporary services which do not necessary assist in confirming the focus of the said industry. Improving the existing products will only better their level of competition to the same target market but introducing new product which do not only concentrate on communication such as computer games will attract more clients. Since the Blue Ocean Strategy mainly focus on attaining uncontested market though innovation, working cross complementary services will assist in introducing product innovation within a short time line.
Path 5- Looking across functional or emotional appeal for buyers
One of the main concerns of the customers is the main function of the product. By ensuring that the product performs according to the expectations of the clients, their satisfaction and return to purchase will also improve. Therefore, Verizon Company should introduce products to the market after a continuous a performance check has fully been done. For instance the company should ensure that their products such as wireless and broadband services can perform with reasonable speed pleasing to the clients. As a strategic plan, the company can introduce product with are not too expensive for the clients but with adequate performance scale, this should also be supported by enough product life span (Wayne, 2005).
Path 6- looking across time
Time is a crucial factor in the company and industry performance. Most industries tend to have a specific time line when carrying out most activities such as sale on products, sampling and discounts. Most advertising programs are made around holiday seasons while personalized manufacturing and delivery are practiced around the low seasons. Verizon can differ from these set industry practices and calendars and organize their own, this will allow customers appreciate and fully utilize the services offered by the company.
Using the above 6 path Blue Ocean framework Verizon will easily introduce consistent innovation company structures which will further yield competitive advantage or uncontested market space.
Chan, K. W., & Mauborgne, R. (2005). Blue Ocean Strategy How to Create Uncontested Market Space and make Competition Irrelvant. Boston: Harvard Business School.
Nelson, S. (2012). Report ranks the best and worst cell phone companies. Retrieved from http://wqad.com/2012/11/29/report-ranks-best-and-worst-cell-phone-companies/a