Red Ocean Strategy | red ocean and blue ocean strategy examples
Tounderstandredoceanstrategyletusbeginbydefiningblueoceanstrategy.BlueOceanStrategy[1]iswhereacompanycreatesacompletelynewmarketspace(ormarketcategory).Thisnewmarketspaceiscreatedbylaunchingnewofferings,withtheaimbeingtomakethecompetitionirrelevantsothatanorganizationcangrow,uncontested,atleastinthebeginning.Youcanthinkofablueoceanbeingaplacewherethesailingiseasy(uncontestedwithclearwater)ifyoucansuccessfullyintroduceanoffering.BlueOceanscanbethoughtofasmarketsthatdonotexistyet.Themicrowaveo...
To understand red ocean strategy let us begin by defining blue ocean strategy. Blue Ocean Strategy[1] 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. The microwave oven would h...