Blue Ocean And The Red Ocean Essay - 1674 Words

Companies who once thought of only being in the red ocean are now beginning to understand the importance of being in the blue ocean. Instead of fighting dominance in the red ocean where profits and market growth starts to dwindle, blue ocean represents the untapped market space where there are opportunities for growth making the competition irrelevant. The authors, Kim and Mauborgne, relying on their study were over 150 companies across 30 industries were analyzed, concluded that currently, two markets exist: the â€Å"red ocean† and the â€Å"blue ocean†. Red oceans represent traditional existing industries and known market space, where rivals outperform each other for bigger market share in an already crowded space and where profits and growth are limited. Blue Ocean depicts the new and unchartered markets and opportunities with new value creations, new customer bases and no competition. What drives the need to create blue oceans are the fast technological advancem ents that continue to shrink market spaces and the supply that is overtaking demand due to globalization. Other researchers mention blue ocean strategy is effective when markets are saturated or in a decline, thus the need to target completely new customers to increase its market base. The Blue Ocean Strategy model provides a series of tools and structure to guide companies to develop new strategies to create their own uncontested markets. While the blue ocean is the objective, the red ocean must be valued as itShow MoreRelatedThe Red Ocean And Blue Oceans1806 Words   |  8 Pagesbusiness world is composed of two types of spaces, these are called red oceans and blue oceans. Red oceans are the representation of all industries that have already been established and are in existence to this day, such as the automobile industry. Within the red ocean space boundaries have been set up and established throughout the industry, companies accept them and understand the competitive nature and rules. Companies within the red ocean industries, try to compete for the existing demand from the consumersRead MoreStrategic Information Management - Red Ocean Blue Ocean Strategy3356 Words   |  14 Pages | |THE COMPARISON OF | |BLUE OCEAN STRATEGY AND RED OCEAN STRATEGY | | Read MoreBlue Ocean Strategy Paper1088 Words   |  5 Pages Blue Ocean Strategy Paper XXXXXXXX MKT 42110/13/2014 Mr. Boswell Blue Ocean Strategy Paper There has been a lot of discussion and consideration when it comes to the red or blue ocean approach to marketing strategies for businesses both already established and newly founded. Red oceans refer to the known market space – all the industries in existence today. In red oceans, industry boundaries are clearly delineated and accepted, and the competitive rules of the game are known. Companies tryRead MoreBlue Ocean846 Words   |  4 PagesBlue Ocean Strategy Jaime Quintero MKT/421 March 23, 2015 Salomon Chavira Blue Ocean Strategy While businesses are continuously looking for techniques in which they can better cope with their rivals, one theory recommends they would be better off studying methods in which they are contending against no one but themselves. This is known as the blue ocean strategy. Blue Ocean Blue Ocean Strategy is a recently established marketing concept obtained from the devises of W. Chan Kim and Renà ©eRead MoreBlue Analysis : Blue Ocean Strategy1056 Words   |  5 PagesW.Chan Kim and Renee Maugborgne article â€Å"Blue Ocean Strategy† and Blue Ocean Strategy: From Theory to Practice challenges firms to distance themselves from the fierce competition in the marketplace by utilizing Blue Ocean Strategy versus the dominantly used Red Ocean Strategy. Both Blue and Red Oceans are distinctly different strategies, both logics are important to understand, and they both coexist. By understanding by the underlying logic of both strategies companies will be able to make decisionsRead MoreEssay on strategy marketing1247 Words   |  5 Pagesï » ¿Team : Hetong Xu; Jin Liu; Jieqi Jin. Blue Ocean Strategy 1. What is a blue ocean strategy? What is a red ocean strategy? Explain these from the perspective of company, competition, costs, and markets. Blue ocean strategy, as a business method, is about company creating a new market or industry where there is no competitor. Companies play not by traditional rules, never use the competition as a benchmark. They could ether create greater value for customers at a higher cost or create reasonableRead MoreBlue Analysis : Blue Ocean Strategy1725 Words   |  7 PagesTHE BLUE OCEAN STRATEGY The term blue ocean was coined by two professors W.Chan Kim and Renee Mauborgne in their book titled â€Å"Blue Ocean Strategy: How to Create Uncontested Market Space and the Make Competition Irrelevant† (2005). The authors present the idea of a business being able to operate in a league of its own, without intense competition. The company is able to set its own pace to create, sell and profit from unique products and services in high potential new markets. The blue ocean is takenRead MoreBlue Ocean Strategy789 Words   |  4 PagesSTRATEGIC MANAGEMENT ASSIGNMENT # 5 BLUE OCEAN STRATEGY October 24, 2014 Case Study Question 1 Critically analyze the case. Solution 1 In this case study, the author has discussed different methods and strategies which global firms are adapting to achieve success and to grow exponentially in their relevant industries. This article has focused on two strategies, Red Ocean and Blue Ocean particularly. These strategies are used to define the environment a firm is operating in and toRead MoreAnalysis Of Blue Ocean Strategy By W. Chan Kim And Renee Mauborgne1231 Words   |  5 Pagesfailure of the company. And the â€Å"Blue Ocean† Strategy, the term introduced in the book â€Å"Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant†, by W. Chan Kim and Renà ©e Mauborgne, is one, which ensures a company to have a long stretch of uncontested success away from the competition. Key Concepts Red Ocean: A market space filled with several players competing with each other for profit and market share is a Red Ocean. Blue Ocean: An unexplored and unknown marketRead MoreWhat is the Blue Ocean Strategy?758 Words   |  4 PagesWhat is Blue Ocean Strategy? by Nattida Sae-Iw MBA Student What is Blue Ocean Strategy? Let’s start with the metaphors To understand the term of Blue Ocean, imagine a market universe composed of two sorts of oceans: Red Oceans and Blue Oceans. Red Oceans represent the existing market space which is known market. Companies in red oceans are competitive-base; they are fighting each other and aim to get a bigger market share