Blue Ocean Strategy Essay

In recent times it has been well documented and reported that the way in which retailing is changing. Alongside the former methods of ‘’bricks and mortar’’ stores, modern day retailers must now ensure that their goods and services are available by means of various streams, including websites and mobile apps. (Benady, D. 2014) But it is not only retailing which have changed; the consumer is becoming savvier and increasingly sophisticated. Consumers are expecting more from retailers and now expect a ‘’seamless shopping experience’’ however way in which they may interact with the retailer. (Benady, D. 2014)

One of the most profound decisions for a retailer manager is that of location, a poor business location can have long term adverse effects

(Kim, W. C., Mauborgne, R. 2005) These two concepts include the Red oceans; representing the industries already in existence, namely the ‘’known market space’’, whereas the Blue oceans denote industries which may not be in existence and are not tainted by competition. (Kim, W. C., Mauborgne. R. 2005) The concept of the ‘’Blue Ocean Strategy’’ can be extremely beneficial for retail managers in terms of location, it can be used in order to aid an overall business strategy, namely: ‘’will the business create a new industry or re-create an existing industry?’’. A retail manager must denote whether the business will be based in an area where a large number of competitors lie or on the other hand use the ‘’Blue Ocean Strategy’’ and create a business whereby there is no known competitor, further breaking new ground. (Kim, W. C., Mauborgne, R.

For a retail manager determining location for an organisation, it must be decided whether the business holds ‘’competitive advantage’’ and whether there is opportunity to outperform competitors and capture a share an existing market. (Kim, W. C., Mauborgne. R. 2005) If a retail manager was to determine that little to no existing competitors in a location it could prove massively influential on where to base a business. (Kim, W. C., Mauborgne, R. 2005)

4. Retail Locations and Management Issues

4.1 Town Centres/High Street – Much has been said in regards to the current state of town centres and high streets in the UK. It has been stated that there has been a year on year decline of 10% in terms of shoppers frequenting the high streets. (Wilmot, S. 2013) Though it may be true that a decline in the high street exists, in terms of location, town centres and high street still hold positive attributes including:

• Social space – Successful high streets can allow shoppers to socialise (shop, eat and relax)

• Community – High streets can work towards serving the needs of the local