Red Ocean And Blue Ocean Strategy Pdf

red ocean and blue ocean strategy pdf

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Analyzes not only winning business players that created blue oceans but also their less successful competitors. Searches for convergence among the strategic moves that created blue oceans and divergence between these moves and those of less successful players caught in the red ocean of bloody competition. Finds clear strategic patterns that united the strategic moves that created blue oceans and separated these from the strategic moves that left companies battling for incremental market share in red oceans of overcrowded markets.

Value innovation: a leap into the blue ocean

Red oceans are all the industries in existence today — the known market space, where industry boundaries are defined and companies try to outperform their rivals to grab a greater share of the existing market. Cutthroat competition turns the ocean bloody red. Blue oceans denote all the industries not in existence today — the unknown market space, unexplored and untainted by competition. The chart above summarizes the distinct characteristics of competing in red oceans Red Ocean Strategy versus creating a blue ocean Blue Ocean Strategy. Learn the essentials of blue ocean strategy and shift created by the 1 Management Thinkers in the World. Create uncontested market space.

Blue Ocean Strategy Books

It can be difficult to succeed with the cutthroat competition in the business environment today. Luckily, there are many strategies you can use in order to gain an edge on your competition. Two of these are red ocean and blue ocean strategies, which were introduced by W. Download our free B2B Marketing for Executives: Big Rocks First eBook to learn foundational best practices to form your marketing strategy, evaluate your messaging and more! A red ocean strategy involves competing in industries that are currently in existence. This often requires overcoming an intense level of competition and can often involve the commoditization of the industry where companies are competing mainly on price. For this strategy, the key goals are to beat the competition and exploit existing demand.

This article is provided by the California Management Review. The market universe is composed of two types of oceans: red oceans and blue oceans. Red oceans are all the industries in existence today; they are increasingly characterized by intense competition. Blue oceans are all the industries not in existence today; they are untouched and uncontested. To prosper in the future, companies need to go beyond competing; they need to create blue oceans. The issue is how to do so.

The Blue Ocean Strategy is a strategic framework, mindset and method that you can use to create new markets where there is no competition. Most companies compete in tightly defined markets and continually fight for a limited amount of value available. Over time, margins and opportunities erode as costs associated with improving market share or profits outweigh returns — these are red oceans. The Blue Ocean framework is a strategic approach that how companies can create new markets where there is little or no competition and therefore they can earn above-average profits. The blue ocean takes you from market competing to market creating. Why use it? A good way to understand how to reassess strategic options.

Red Ocean Strategy

The first example of blue ocean strategy comes from computer games giant, Nintendo, in the form of the Nintendo Wii. The Nintendo Wii launched in and at its heart is the concept of value innovation. This is a key principle of blue ocean strategy which sees low cost and differentiation being pursued simultaneously. To reduce costs, Nintendo did away with the hard disk and DVD functionality found in most game consoles and reduced the processing quality and graphics. At the same time, Nintendo introduced a wireless motion control stick to differentiate itself against the market offering.

This blog article is a overview of some of the key points of the book by W. 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. Click the link above or the picture below to read more. Create your own market winning business strategy for free.

Blue Ocean Strategy: From Theory to Practice

Blue Ocean Strategy is a book published in written by W. They assert that these strategic moves create a leap in value for the company, its buyers, and its employees while unlocking new demand and making the competition irrelevant. The book presents analytical frameworks and tools to foster an organization's ability to systematically create and capture "blue oceans"—unexplored new market areas. The book is divided into three parts: [3]. The first part presents key concepts of blue ocean strategy, including Value Innovation — the simultaneous pursuit of differentiation and low cost — and key analytical tools and frameworks such as the strategy canvas and the four actions framework.

Blue Ocean Strategy challenges the common belief that you have to outcompete your business rivals to achieve sustained profitability. Plus, it offers an alternative. The alternative is to make your competitors irrelevant through innovation and creating your own market. This new market is called your blue ocean. Being able to innovate is becoming increasingly important, with markets becoming saturated and profit margins being squeezed due to competition.

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Blue Ocean Strategy & Shift Tools

4 COMMENTS

Turndenvini1991

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How does blue ocean strategy differ from red ocean strategy? See comparison between red and blue ocean strategies here in one simple table.

Curtis R.

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include blue ocean strategy along with the red ocean strategy. The vieoints of the authors are discussed with a greater clarity in order to clearify both the terms.

John B.

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