Blue Ocean Strategy - Including Examples And PDF DownloadThis blog article is a overview of some of the key points of the book by W. In this article you will learn how to make your competition irrelevant and have sales and profit growth in excess of anything you thought was even possible. Click the link above or the picture below to read more. Interested in buying the book? Blue oceans strategy is the approach that suggests a company is better off searching for ways to play in uncontested market places instead of engaging with competition in existing marketing spaces. It is the idea of trying to find market spaces that are free of competitors by creating and caputuring new demand, making the competition irrelevant.
8 - Blue Ocean vs Red Ocean
Red Ocean Traps
To understand red ocean strategy let us begin by defining blue ocean strategy. Blue Ocean Strategy is where a company creates a completely new market space or market category. This new market space is created by launching new offerings, with the aim being to make the competition irrelevant so that an organization can grow, uncontested, at least in the beginning. You can think of a blue ocean being a place where the sailing is easy uncontested with clear water if you can successfully introduce an offering. Blue Oceans can be thought of as markets that do not exist yet.
Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. It is about creating and capturing uncontested market space, thereby making the competition irrelevant. It is based on the view that market boundaries and industry structure are not a given and can be reconstructed by the actions and beliefs of industry players. In their classic book, Blue Ocean Strategy , W. Red oceans are all the industries in existence today — the known market space. In red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. Here, companies try to outperform their rivals to grab a greater share of existing demand.
As established markets become less profitable, companies increasingly need to find ways to create and capture new markets. Despite much investment and commitment, most firms struggle to do this. What, exactly, is getting in their way? The authors of the best-selling Blue Ocean Strategy have spent over a decade exploring that question. To succeed in the long term, companies must find ways to create new markets.
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Red Ocean Strategy Advantages
Blue Ocean. You may think that Chan Kim and Renee Mauborgne may fall into the category of trying to coin new words to set their concepts apart, but there is method to the madness. The concept is quite simple to understand. The Red Ocean is where every industry is today. There is a defined market, defined competitors and a typical way to run a business in any specific industry. The researchers called this the Red Ocean, analogous to a shark infested ocean where the sharks are fighting each other for the same prey.