RED OCEAN STRATEGY
By
Greeshma Rao.

CONTENTS
• Red Ocean Strategy
• Customer Value
• Examples of Red Ocean
• Red vs. Blue Oceans
• Comparing of both Oceans
• Advantages
• Disadvantages
• Conclusion

RED OCEAN
 Prof. W. Chan Kim and Renee
Mauborgne in 2005
Competition within market space
“Known” market
Number of competitors

Conti..
Traditional strategy
 Companies compete for
Customers
 Aim – Fight and Beat the
competition
 Demands among same customers
by changing companies offerings

Conti...
Make the Value or Cost Trade-off
 As the market space gets crowded,
profits and growth are reduced
 Cut-throat competition turns the
ocean red
 RED ocean strategy is Market-
competing strategy

Creating Value or Trade-Off

Example for Red Ocean
Beverages
No one stands a chance in
front of these giants

Other Examples

Red V/S Blue Ocean

Products of Red and Blue

Comparing Both Oceans

Red Ocean Strategy
Advantages
• The market is already established
• It is clear what products and
services customers want

Red Ocean Strategy
Disadvantages
• Established market leader who will
be very hard to beat
• Competition is fierce

HIGH ABOVE OR FIGHT LIKE SHARKS
Which is better???