A red ocean strategy is where you go after the same people as your competitors and try to meet the same needs that your competitors are meeting. Red deer Cervus elaphus: Sand cat Felis margarita: The subspecies Felis margarita scheffeli is endemic to Pakistan. For example, "competing factors" in blue ocean strategy are similar to the definition of "finite and infinite dimensions" in Funky Business. 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. Based on an eponymously titled book, this strategy argues that “cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool.”Companies should instead look for new market space and ways to reinvent the industry. When the iPod was introduced in 2001, Steve Jobs said that “with [the] iPod, Apple has invented a whole new category of digital music player that lets you put your entire music collection in your pocket and listen to it … This blog article takes a look at what kind of ROI some companies have achieved by implementing a blue ocean strategy by W. Chan Kim and Renée Mauborgne. Red Ocean = The Known Market Space – High Competition. They are competing very successfully in the already saturated red ocean of the short-haul airline business. Introduction Blue Ocean Strategy evolves to Red Ocean Chan Kim and Renee Mauborgne derived the term “Blue Ocean Strategy” to explicate this new business model. If we have new product or Innovation it would be ideal to follow Blue Ocean Strategy so its situation if you want to become path breaking company then you can embrace Blue Ocean technology . Because, only with a blue ocean strategy and the right entrepreneurial mindset, you can swim into a … Implementing the blue ocean strategy is, simply put, a gargantuan task. In order to create this shift in attention from Red Oceans to Blue Oceans the authors came up with a concept called ‘ Value Innovation ‘ that allows for a simultaneous pursuit of both differentiation and low-cost. The researchers called this the Red Ocean, analogous to a shark infested ocean where the sharks are fighting each other for the same prey. A good example of Red Ocean Strategy is the European airline Ryanair. Where Red Ocean Strategy is a zero-sum game that is all about splitting up the pie between rivals, Blue Ocean Strategy is about creating the pie and/or enlarging it. RED Strategy. But then, with more customers and higher profits, there will be new competitors jumping into the market White Ocean Strategy "A powerful paradigm for sustainable success in a world where everyone can finally be a winner!" Blue Ocean Strategy 6 of those initial applications in September 2014 the number of applications available had exploded to 1,300,000 million applications available to purchase (Costello, 2014). Rather than competing in an existing market with your product, create a space where you enjoy hundred percent monopoly. ... For example, cars with television ... and bring new customers is a key to keep the business working for longer term without the fear in being trapped in a red ocean. Products and services become commodities and cutthroat competition turns the ocean bloody. Before we dive into Blue Ocean Strategy examples, let’s get clear on what a blue ocean is. 8 Blue Ocean strategy is a framework which inspires to create a market for an innovative product or market where there is a less competition. Blue Ocean Strategy vs. BLUE OCEAN STRATEGY Red Ocean Strategy Blue Ocean Strategy Virgin Cola Red Bull Competed vs. Coke and Pepsi with Niche product: carbonated traditional cola … ∗Blue Ocean Strategy is a: ∗Value Innovation Strategy – competes in an uncontested market space ∗“Combination Strategy ”: pursue differentiation while controlling costs. Blue Ocean Strategy Examples & Return On Investment. Research has shown that the RED strategy results in significantly more children being immunized, and this guide aims to enable many more health workers to employ the approach. I think most of the companies if they are in niche market follow red ocean strategy like my company also does as we are not in manufacturing so we compete in existing market space. To understand red ocean strategy let us begin by defining blue ocean strategy. RED OCEAN STRATEGY By Greeshma Rao. Because of similar products, the firms in the Red Ocean also face pricing competition from the other existing firms to drive up their Business Revenues. The value of having a blue ocean strategy is better understood when compared to a red ocean strategy. The authors of the best-selling Blue Ocean Strategy have spent over a decade exploring that question. As the market space gets crowded, prospects for profits and growth are reduced. 3. W. Chan Kim and Renée Mauborgne are Professors of Strategy at INSEAD and Co-Directors of the INSEAD Blue Ocean Strategy Institute.They are the authors of Blue Ocean Strategy, which has sold over 3.6 million copies and is recognized as one of the most iconic and impactful strategy books ever written. Another issue: Did P&G think Clorox would stand idly by while one of the largest marketing behemoths in the world pushed into its bread and butter product? Did no one at P&G read that book, and understand the consequences? Blue oceans offer firms areas of uncontested competition easing their … Traditional Competitive Strategies. CONTENTS • Red Ocean Strategy • Customer Value • Examples of Red Ocean • Red vs. Blue Oceans • Comparing of both Oceans • Advantages • Disadvantages • Conclusion 3. Therefore you fight over the same fish and, as sharks feeding on the same fish, the water becomes red with blood. Consider two types of oceans: Red oceans, where competition is fierce in bloody waters, strategy centers around beating rivals, and wins are often zero-sum. A Blue Ocean Strategy is one in which you create a space in which there is no competition. Smooth-coated otter Lutrogale perspicillata: Wild goat Capra aegagrus: The subspecies Capra aegagrus blythi and Capra aegagrus chialtanensis are endemic to Pakistan. Red ocean is all about competition, companies in Red Ocean have to squeeze profit margin in order to survive in their industries. 1. In this 5 minute blog, I’ll tell you what the difference is between a red vs blue ocean, and how certain entrepreneurial skills can help you survive a bloody red ocean. The likely hood of an application even being found within that large of a selection is slim. Blue Ocean Strategy (BOS) put forward a new approach which talks about an environment with absolutely zero competition. Here’s a neat little summary for each strategy: Examples of Blue Ocean Strategy There are several examples of the blue ocean strategy all over the world that have been accepted by many industries to get benefits such as Canon, iTunes, Cemex, Philips, Netjets, Curves, JCDecaux, Quicken, Polo Ralph Lauren, and so on. The Blue Ocean Strategy. Of the many strategic planning models that exist, the Blue Ocean Strategy could be considered the pacifist of the group. ∗Achieved via the delivery of features that have a highest marginal benefit to customer needs . Furthermore, the aim of adopting this strategy is to search for a business in which very few firms operate and where there is no pricing pressure. Red Ocean strategy is a marketing strategy where there are a large number of firms selling closely related or even homogenous products. Blue Ocean Strategy is where a company creates a completely new market space (or market category). Blue Ocean Strategy vs. Red Ocean Strategy. There is a defined market, defined competitors and a typical way to run a business in any specific industry. Blue Ocean Strategy (BOS) put forward a new approach which talks about an environment with absolutely zero competition. But many companies have done their homework and succeeded thanks to this strategy. Methodology/Approach: In the first part of this study, an extensive literary review is presented, solely focused on Blue Ocean Strategy and Business Model Innovation. Produced by WHO and UNICEF, the 'Reaching Every District' (RED) micro-planning guide is a useful set of tools for health workers dealing with immunization. iTunes solved the problem of recording industries when it started the business. There strategy is focused on providing a low-cost no frills airline. 4 ABSTRACT Purpose: Aim of this dissertation is to investigate whether Eataly, the largest wine and food marketplace of the world, entered a Blue Ocean via Business Model Innovation. The Red Ocean is where every industry is today. Blue ocean is a slang term referring to the uncontested market space of an unknown industry or innovation. Just as blue ocean strategy claims that a red ocean strategy does not guarantee success, Funky Business explained that "Competitive Strategy is the route to nowhere". ... (red oceans). Companies try to outperform their rivals to grab a greater share of product or service demand. A Red Ocean strategy requires that you are equipped with the business acumen and situational knowledge to be a trusted advisor, with that recipe … An example of a successful execution of a blue ocean strategy is the iPod. Purple Ocean Strategy Purple Ocean Strategy Blue Ocean Strategy Blue Ocean Strategy A mixture of both Red and Blue Strategy approaches Companies are following those combinations of Red and Blue Strategy Purple Ocean strategy advocates continuous innovation, numerous traditional Click the link above or the picture below to read more. The Blue Ocean Strategy concept originated from the research documented in the “Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant.” The cornerstone of Blue Ocean Strategy is value innovation, according to Layton, which creates unprecedented value for the customer while simultaneously creating high profits for the company. Last week lesson, we talked about the difference of Red Ocean strategy and Blue Ocean strategy. This is a classic example of what Kim and Mabourge called a red ocean in their book Blue Ocean Strategy. Most of us, however, live in the Red Ocean. 2.
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