Blue ocean strategy is a strategy that aims to make the competition irrelevant by finding ways to generate uncontested market space (Media Marketing, 2012). By implementing this strategy, a company is being forced to align their process related to production, costs and costs activities (Media Marketing, 2012). By utilizing the blue ocean strategy, Ambang Mata will achieve higher returns and also may continue to survive in the market.
One of the strategy being suggested was setting up a research and development department (R&D) may also very helpful in analyzing the current market trend as well as developing a new products. The research team may do more surveys to understand the market and also listen to the customers’ demand. This can help Ambang Mata to mitigate the risks of producing products that do not required by the market.
For instance, a research had shown that about 78% of the tablet-owning parents let their kids under the age 11 play with the tablets in their homes, and there are 54% among these parents said that their children use tablets for educational purpose (Techvibes Newsdesk, 2013). Among those that did not allow their children play with tablet, there are 20% of them said that they will allow their kids to play if there are more educational content (Techvibes Newsdesk, 2013). From here, we can be analyse that the parents are demanding for more educational content in the tablet. This is also means that the current educations apps that available did not satisfied the demand of the consumers. Hence, this will be a very potential market for Ambang Mata to explore.
Ambang Mata had also formed a new strategy that aims to introduce new game apps to the consumers for the sake of learning the Islamic knowledge. This is a whole new product line that hasn’t being explored by the local publisher. As Ambang Mata had operated for many years in the industry, they had built a very good foundation for their business. There are also banks that offer them for the financing. So, they will be financially supported to explore the new line. Creating apps also requires support from the expertise such as the IT department or the games designer. All these had help Ambang Mata to create a barrier to new entrants. Furthermore, the apps being designed could be consists of full version and trial version. If the parents thinks that the apps is very useful and achieve good performance in educates their children, they will be more and willing to purchase the full version. This will be a great opportunity for them.
Since this is an unexplored market, there are fewer competitors in the market. Although Ambang Mata will need to bear a very high risks in exploring these new product lines, but high risks always associate with high returns. In short term, they might incur huge costs in R&D but in long run, they can create a competitive advantage where it is hard for their competitors to duplicate their products. They might also stand a chance to attract the...