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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