blue ocean vs red ocean strategy

Blue ocean strategy could be a way out of the crisis and a way to achieve economical and social benefit. Examples of red and blue ocean strategy companies. They use red to indicate how businesses in these environments ‘bleed’ due to being constantly attacked by the competition. Red Ocean vs. Blue Ocean Strategy Coined by W. Chan Kim and Renée Mauborgne, the term “red ocean” refers to all the industries in existence today, otherwise known as “the known market space.” In red oceans, industry boundaries are defined and accepted and the competitive rules of the game are known. Red Ocean Strategies. Beat the competition. Break the value-cost trade-off. Red Ocean Vs Blue Ocean Strategy \ What is the difference between Blue Ocean Strategy and Red Ocean Strategy? There is a defined market, defined competitors and a typical way to run a business in any specific industry. If you are new to blue ocean strategy, watch this brief video introducing you to the basic concepts. … Make the value-cost trade . BLUE OCEAN VS RED OCEAN STRATEGY. How can Dollar Family break out of the red ocean of bloody competition? 40. Blue ocean strategy – is process of making new market and new demand by combination differentiation and low cost strategy. A red ocean is a saturated market with industry competitors. market space Make the competition irrelevant Create and capture new demand. Understanding this dynamic is what led Target to revamp its product strategy and move into a less crowded market. The strategy should involve getting a new product which no other companies in the red ocean has so that the company can leave the saturated market. off Align the whole system of a firms activities with its strategic choice of differentiation … Blue Ocean Strategy is about pursuing differentiation and low cost at the same time. Blue Ocean Strategy vs Red Ocean Strategy Porter vs Blue Ocean Strategy Porter vs Blue Ocean Strategy. ... Red Ocean Strategies to Blue Ocean Strategies can really help an enterprise or an economy to overcome the great depression and create the basis for a healthier competition. The linchpin of any Blue Ocean strategy is strong product differentiation. By: Ayesha Shahid I.D.No. https://medium.com/swlh/red-ocean-versus-blue-ocean-strategy-6310529447cd Are you and your classmates ready to build the future? Blue Ocean is a strategy of innovation in new market space where competition does not exist. Blue vs Red Ocean. Red Ocean vs Blue Ocean. Red Oceans vs. Blue Oceans. market space Beat competition Exploit existing demand BLUE OCEAN VS RED OCEAN STRATEGY. Blue Ocean Vs Red Ocean strategies ….. Prof. Suhas Mekhe ISBS. Red Ocean vs Blue Ocean. This is the most known type of market, as you are competing directly with competitors to offer your products to people already looking for it and trying to find the best price for them. Two of these are red ocean and blue ocean strategies, which were introduced by W. Chan Kim and Renée Mauborgne in 2005. Make the value-cost trade-off. Businesses compete in various markets. Red Ocean Vs. Blue Ocean Strategy. The blue ocean was a utopic paradise just waiting for the right people and companies to come with their ideas. Fight for existing demand. Blue Ocean Strategy is where a company creates a completely new market space (or market category). Create uncontested market space. A business model describes the rationale of how an organization creates, delivers, and captures value (economic, social, cultural, or other forms of value). The concept is quite simple to understand. The counter to the blue ocean is the red ocean. Blue Ocean vs. Red Ocean Businesses: Opportunities in Both Michael L. Omansky Associate Professor Business Division Felician College 223 Montross Avenue Rutherford, NJ 07070 michaelomansky@gmail.com Abstract:“Blue Ocean” businesses create new markets, new demand, and often give the business insulation against competition. When comparing the two, the best way to differentiate the terms is by thinking about the driving factor for operations. Blue Ocean vs. Red Ocean Strategy Infonotizia.it,Italy A brief comparison of red and blue ocean strategies. How can Emaar Dubai break out of the red ocean of bloody competition? Porter’s model focuses on developing a strategic framework that starts with analysing the external environment – Porters Five Forces model. Looking at entire industries in this way allows you to tell over time whether an innovation strategy or a competitive strategy is best. Companies try to outperform their rivals to grab a greater share of existing demand. Currently, there … A blue ocean strategy is a tool used to gaining a competitive advantage, it is a strategy used to create a uncontested market space and make the competition irrelevant. The result of the competition is destruction, which draws the analogy of red blood in the ocean water. Every new product or service on the market is obviously there to stay, not all will be able to handle the bloody competition and with time the underdogs will fade out of the market. A red ocean strategy involves competing in … Create and capture new demand. Red Ocean companies like Indigo and Spice Jet in India, Ryan Air in Europe and Southwest in the USA successfully penetrated in an already saturated ocean of short-haul airlines business. Exploit existing demand. The red ocean represents something that already exists in a given marketplace. ==> Doesn’t seem great no? BLUE OCEAN VS RED OCEAN MARKETING STRATEGY CHARACTER -ISTICS OUTCOME RED OCEAN WARNINGS MEANING Red oceans are all the industries in existence today – the known market space, where industry boundaries are defined and companies try … 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. Blue Ocean Vs. Red Ocean. Vision, Mission and Values – Vision – it’s a statement Break the value-cost trade. While they are generally perceived to be more … Red ocean strategy face a lot of challenges from market competitors and companies usually fight within the market to emerge the winner. As the market space gets crowded, prospects for profit and growth are reduced. (Dr.) Nitin Zaware Following my earlier brief post on value innovations that formed the core of a realtively new strategy concept called Blue Ocean Strategy (BOS), this post provides a critique of BOS to offer a deeper insight. It is about redefining the boundaries of the market and changing the industry structure, thereby creating and capturing uncontested market space while making the competition irrelevant. Blue Ocean Strategy . Companies try to … The rivalry of firms fighting for a 0.2% gain in market share meant that investing in such an area could not be as efficient and it made it extremely hard to become the best unless you already were. Where Red Ocean Strategy is a zero-sum game that is all about splitting up the pie between rivals, Blue Ocean Strategy is about creating the pie and/or enlarging it. The red ocean in contrast is red because of…well blood. Red and Blue ocean strategy Red ocean strategy – is to improve the market share in the current market and creating demand beyond expectations. It is a great way to mobilize thinking around new differentiators (value creation). Red Ocean Vs Blue Ocean Strategy \ What is the difference between Blue Ocean Strategy and Red Ocean Strategy? 2Prof. Red oceans are all existing industries - the known market space. Blue Ocean Strategy The “Blue Ocean” approach is a strategic tool that helps innovation strategists’ asses current and desired future strategic states whereas..Red Ocean is a current state. Source: Book ‘Blue Ocean Strategy’ How to survive in a red ocean? According to Kim and Mauborgne, ‘red oceans’ are all the market spaces that currently exist – the ones you’re probably working in. In contrast, a blue ocean has not been created or seen in a particular industry. Blue Ocean vs Red Ocean Strategy. While ASOS PLC also actively pursues the red ocean strategy, it is also an avid follower of the blue ocean strategy. The Red Ocean is where every industry is today. By identifying untapped (or at least less tapped) product markets where unique buyer segments and needs can be identified and satisfied, Blue Ocean Strategy results to lesser or zero competition. Unlike the "red ocean strategy", the conventional approach to business of beating competition derived from the military organization, the "blue ocean strategy" tries to align innovation with utility, price and cost positions. Compete in existing. Red Ocean V/s Blue Ocean Strategy. Trade off value for cost. Create new demand. OCEAN STRATEGY Red Ocean Strategy Blue Ocean Strategy Compete in existing market space. Consequently, they are rivaling head to head with their competition over the same existing customers. Image: red vs blue ocean strategy. The authors of the Blue Ocean concept insist that their strategy is different from Porter’s Five Forces, which they reckon is all about battling the sharks in the red oceans. Beat the competition. In order to create this shift in attention from Red Oceans to Blue Oceans the authors came up with a concept called ‘ Value Innovation ‘ that allows for a simultaneous pursuit of both differentiation and low-cost. But a good a company would strategize and get out of Red Ocean to Blue Ocean. Red Ocean = The Known Market Space – High Competition. To understand red ocean strategy let us begin by defining blue ocean strategy. ASOS PLC differs in its adoption of the blue ocean strategy to achieve rapid growth in unexplored market spaces. Here’s a simple summary of how a traditional red ocean strategy matches up to a blue ocean strategy: Red ocean strategy: Blue ocean strategy: Compete in existing industry. : 9298 What Is Red Ocean? Blue ocean strategy refers to that strategy under which company creates new market or operates in uncontested market, in simple words there is no competition in this type of markets whereas in case of red ocean a firm has to compete in a competitive markets which have many players or in simple words red ocean market is characterized by large number of firms competing with each other … In the red oceans, industry boundaries are defined and accepted. Doing this opens up new market space and allows a company to target customers that previously weren’t even in the market. Create uncontested. In red oceans, business leaders and entrepreneurs are in a cage of creating innovation and competitive advantage as dominant business thinking. To talk about the blue ocean, we need to, first, talk about its opposite: the Red Ocean. Create a new uncontested industry. Make the competition irrelevant. These competitors may possess a competitive advantage driven by cost, differentiation, or niche market strategies. Avoid competition and make competitors irrelevant. The choice of strategy differs based on the product nature and offerings, as well as the business goals, and market development. These are no-frills, low-cost airlines which have acquired customers but are always in direct competition with one another. One way to look at it is as in an ocean.