This approach reflects traditional
Posted: Sat Jan 04, 2025 4:50 am
These two approaches represent opposing philosophies on how to compete and thrive in markets. Back to index Red Ocean Strategy: Competing in Saturated Markets Red Ocean describes existing, highly competitive and often saturated markets where companies try to dominate by offering lower prices, higher quality, or incremental innovation. The term “red” evokes the metaphor of blood-stained waters, an image that evokes the fierce battle between competitors.
This approach reflects traditional strategies based on the concept of “competing better” within an established industry. It focuses on improving the same competitive factors, such as cost, performance or afghanistan phone number list service, without creating new perceived value. A typical example is the smartphone market. Brands such as Samsung and Apple compete directly on technology, design and price. Companies try to steal customers from competitors, but this often leads to price wars that reduce profit margins.
Back to index Blue Ocean Strategy: Creating New Markets The Blue Ocean , on the other hand, represents the idea of creating new market spaces where competition becomes irrelevant. Instead of competing on existing parameters, companies focus on innovations that redefine customer value by introducing new factors of competition and eliminating less relevant ones. This approach is based on the concept of value innovation , a combination of differentiation and cost reduction.
This approach reflects traditional strategies based on the concept of “competing better” within an established industry. It focuses on improving the same competitive factors, such as cost, performance or afghanistan phone number list service, without creating new perceived value. A typical example is the smartphone market. Brands such as Samsung and Apple compete directly on technology, design and price. Companies try to steal customers from competitors, but this often leads to price wars that reduce profit margins.
Back to index Blue Ocean Strategy: Creating New Markets The Blue Ocean , on the other hand, represents the idea of creating new market spaces where competition becomes irrelevant. Instead of competing on existing parameters, companies focus on innovations that redefine customer value by introducing new factors of competition and eliminating less relevant ones. This approach is based on the concept of value innovation , a combination of differentiation and cost reduction.