Blue ocean vs red ocean pdf

This study is based on the pros and cons of the blue ocean strategy bos that offers users a framework for creating uncontested market space and diverts the views from the current competition to. These competitors may possess a competitive advantage driven by cost, differentiation, or niche market strategies. Blue ocean vs red ocean questions blue ocean vs red. They defined todays markets as either being a blue ocean or a red ocean, with the latter being the one most companies operate in and the one we all understand best. This blog article is a overview of some of the key points of the book by w. Mmtbatch 36 marketing management blue ocean strategy vs. One of the reasons why the authors have used the colors red and blue is to describe the market. An introduction to blue ocean strategy mba knowledge base.

Pdf impact of blue ocean strategy on organizational. Blue ocean strategy challenges companies to break out of the red ocean of bloody competition by creating uncontested market space that makes the competition irrelevant. The insead blue ocean strategy institute is dedicated to extending the research on blue ocean shift, blue ocean strategy, and blue ocean leadership by chan kim and renee mauborgne and disseminating it to professors, researchers and practitioners around the globe. How to create uncontested market space and make the competition irrelevant, a. Want more secrets and tricks like the blue ocean strategy. Most blue oceans are created from within red oceans by expanding existing industry boundaries. Value innovation strategy competes in an uncontested market space. If we compare the blue ocean with the red ocean we find that whereas the former denotes all the industries not in existence now and hence, are potential opportunities for companies to enter and unlock demand, the latter denotes the existing industries and the known market space, which is characterized by reduced. As competition increases, prospects for profit and growth decline. Comparing the red ocean strategy with the blue ocean strategy. Blue ocean strategy provides a systematic approach to break out of the red ocean of severe competition and make the competition irrelevant by reconstructing market boundaries to create a leap in value for both the company and its buyers.

Chan kim and renee mauborgne is a strategy that challenges companies to distance itself away from fierce competition by establishing uncontested market space that makes existing competition irrelevant. Blue ocean vs red ocean strategy free download as powerpoint presentation. The result of the competition is destruction, which draws the analogy of red blood in. Red ocean vs blue ocean this blog article is a overview of some of the key points of the book by w.

There are tons of competition in the existing market space. Instead of swimming in the bloodstained red ocean, you can create a. We will introduce the aspects of red ocean strategies that most of the companies use around the world, and then we will compare the advantages and. The red oceans are the markets where sharks fight for their share, while the blue oceans, competition is irrelevant. He projected on the screen guestroom photos of eight different hotel rooms, belonging to different brands, and he asked who in the room could. The following table is useful in highlighting the different focus areas between a red ocean and blue ocean strategy. There is ample opportunity for growth that is both profitable and rapid. The premise of the book is that companies can succeed by creating. Successful trailblazing organizations will attract competition, creating a red ocean. There is a defined market, defined competitors and a typical way to run a business in any specific industry. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Blue ocean strategy shift from red oceans to blue oceans. A marketcompeting strategy divides existing wealth between rival companies.

Chan kim and mauborgne use the metaphor of red and blue oceans to describe the market. Red ocean blue ocean bloody competition why competeto take a larger share when you dontin the market have to. Successful trailblazing organizations will attract competition, creating a. In red oceans, there is a competitiveadvantage worldview, companies are often driven to outperform rivals and capture greater shares of existing or shrinking market space. Innovation, new market space and creating demand are central characteristics. You must keep in mind that there is a deeper potential of the marketplace that hasnt been explored yet. The goal of a blue ocean strategy is for organizations to find and develop blue oceans uncontested, growing markets and avoid red oceans overdeveloped, saturated markets. Blue ocean strategy is a book published in 2005 and written by w. Red ocean basis of competition is trying to get a bigger share in the same defined market.

In this 5 minute blog, ill tell you what the difference is between a red ocean vs blue ocean and how you can survive a red ocean and swim into a more profitable and audible blue one. So blue ocean strategy is about how can any company or organization break out of the red ocean of bloody competition or existing market space, which tends to. Are you a fiveforces disciple or a blueocean enthusiast. See comparison between red and blue ocean strategies here in one simple table. In a red ocean, an industry sector boundary is defined and accepted. Red ocean and blue ocean strategies comparison table. The strategy is formulated to achieve the goals of the firm.

Ideal for strategy lectures or strategy analysis introduction, impress your audience with this appealing slide. Blue ocean strategy and its implications for businesses. Like the blue ocean, it is vast, deep and powerful in terms of opportunity and profitable growth. A company will have more success, fewer risks, and increased profits in a blue ocean market. A blue ocean strategy is based on creating demand that is not currently in existence, rather than fighting over it with other companies. Most of us work in industries that require that we displace our competitors in order to grow. Each table is created as powerpoint tables, and are 100% editable. Thank you blue ocean and red ocean strategies bos vs ros overview blue ocean strategy studying the red ocean strategies with examples. Blue ocean theory could help enterprises focus in another philosophy on how to attract market share from their competitors, as the current competition strategies. Discussion blue ocean strategy versus red ocean strategy every blue ocean company would ultimately reach to. In this article you will learn how to make your competition irrelevant and have sales and profit. A red ocean is a saturated market with industry competitors. While they are generally perceived to be more exciting and innovative, there are still major opportunities in traditional red ocean businesses when companies apply rethinking and some adjustments.

Nearest metro station samaypur badli or rithala is video me humane blue ocean strategy k bare me baat ki hai. Blue ocean strategy including examples and pdf download. Then, the team must answer the following questions in a written response coversheet and about 5 to 6 pages total for all the 4 questions. A blue ocean is contrasted with a red ocean where all market participants are doing the same thing and fighting for the same customers. Achieved via the delivery of features that have a highest marginal benefit to customer needs.

The porters five forces is focusing more on what makes an organization competitive in existing red markets and it is concerned with the microenvironmental factors affecting businesses within the same industry. Blue ocean strategy the blue ocean approach is a strategic tool that helps innovation strategists asses current and desired future strategic states whereasred ocean is a current state. Competing in the red ocean means aiming to beat your competition. This is the same idea expressed in the form of an analogy. Red ocean in blue oceans, demand is created rather than fought over. Blue ocean vs red ocean strategy strategic management. That is, do you try to dominate existing markets or look for opportunities to create new ones. It is aimed at enriching blue ocean strategy with a case study in which we see the process of creating a blue. If blue ocean strategy dominates in the shortterm while porters five forces dominates in the longterm such that profits are positively related to the number of firms in the shortterm but negatively related in the longterm, that would imply that innovation by new firms generates shortterm competitive advantage with associated higher. Introducing the tools used in the blue ocean strategy. In this article you will learn how to make your competition irrelevant and have sales and profit growth in excess of anything you thought was even possible. Kim and mauborgne claim that blue ocean strategy makes sense in a world where supply exceeds demand. Blue ocean and red ocean strategies by arnav gupta on prezi. Blue ocean strategy powerpoint templates present better.

Competitive rules of the game are wellknown and predefined. Companies try to outperform each other and gain a greater share of product or service demand. Blue ocean businesses create new markets, new demand, and often give the business insulation against competition. Blue ocean strategy, red ocean strategy, innovation, competition, cirque, rivals. The researchers called this the red ocean, analogous to a shark infested ocean where the sharks are fighting each other for the same prey. What levie did to illustrate the fact that so much of the hotel industry has fallen into a sea of sameness i. It is worth noting the organizations will move between blue oceans and red oceans over time.