Facebook’s Blue Ocean Strategy essay 

Facebook’s Blue Ocean Strategy essay

Facebook’s Blue Ocean Strategy


This paper discusses the concept of blue ocean strategy. The concept is discussed within the context of Facebook’s operations that have seen grow its customer base over the years up to level that it is almost the commonest communication, prompts and alerts in the social media. The paper thus focuses on the strategy that Facebook applied to build this great following and customer loyalty over the year.

Facebook’s Blue Ocean Strategy

The blue ocean strategy aims at creating a new market that is uncontested and forms the best route to high performance. This route is contrary to the normal route of competition for the already shrinking market, also known as Red Ocean (Vance, 2012).

Facebook is one of the companies that have succeeded in implementing the blue ocean strategy. Working under Zuckerberg, the company has, within a short time, created its own market and skyrocketed both in terms of the number of users and profits (Vance, 2012).  He craved to see a social network company that would bring the world together as one big family. This made the company unique thus opened another business frontier away from the others.

The second factor that propelled the company concerns value innovation. This means that he built the company on the model of increased value with low costs on the consumer. The first value comes from its user-friendly nature. The software used makes exchange of information pretty easy and faster (Vance, 2012). This is characterized by the easy way of exchanging photos and faster chats, all at low consumer prizes. This is very different from other social networks such as yahoo and twitter among others.

The strategy of reconstructing market boundaries has also kept the company relevant to the market. The management conducts numerous software-generated researches on the functionality and emotional appeal of the site to people. They, for example through these researches, realized that people did not like the “reject” option to friends’ request. They, therefore, decided to replace that with the “not now” option. They realized that his option has helped in keeping many users logged on to the website (Vance, 2012).

Finally, the company has also successfully managed to build a custom webpage for its users on each visit. The most important tool applied here concerns time. The webpages have constant updates on the activities of other people in the network including their photos and video uploads. This means that it also does not choose what should appear on the wall of the user but rather gives them the ability to customize their walls. This makes the users feel more involved thus keeps Facebook in business.