RED OCEAN STRATEGY

RED OCEAN STRATEGY

BLUE OCEAN STRATEGY

Blue ocean denotes all the industries not in existence today – the unknown market place , untainted by competition. Here demand is created rather than fought over . There is ample opportunity for growth both profitable and rapid. In blue oceans competition is irrelevant as the rules of the games are yet to be set. It is an analogy used to describe the wider and deeper potentiality of the market space which is yet to be explored.

BLUE OCEAN STRATEGY

STRATEGY FORMULATIONS

STRATEGY EXECUTION

RED OCEAN STRATEGY BLUE OCEAN STRATEGY

Compete in existing market space

Beat the competition

Focus on existing customers

Exploit existing demand

Make the value-cost tradeoff(create greater value to customers at a higher cost or create reasonable value at a lower cost)

Align the whole system of a firm’s activities with its strategic choice of differentiation or low cost

Create uncontested market space

Make the competition irrelevant

Focus on non-customers

Create and capture new demand

Break the value-cost tradeoff(Seek greater value to customers and low cost simultaneously)

Align the whole system of a firm’s activities in pursuit of differentiation and low cost.

RED OCEAN STRATEGY V/S BLUE OCEAN STRATEGY

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