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The Red Ocean is the place where every industry is today. There is a defined showcase, defined competitors and a average way to run a business in any specific industry. this is known Red Ocean, identical to a shark pervaded ocean where the sharks are fighting each other for the similar prey.
The Blue Ocean, on the other hand, is quite smooth, with lots of food and little or no opposition. This is where everyone want to be and it is feasible for you to have a Blue Ocean.
Consider some of the well known Blue Oceans created by the New York Police Department, Southwest Airlines, Cemex Cement, and The Body Shop. These association created their blue ocean and so can you.
1)Red ocean strategy concentrates on current customers
Blue ocean strategy concentrate on noncustomers.
In most industries there is little push
to attract new buyers to the industry, thus the focus on the customers currently purchasing in that industry. In the Blue Ocean, there is a focus on trying to increase the size of the industry by attracting people who have never acquired in that industry.
2)Beat the opposition vs. Make the opposition irrelevant. The competition becomes irrelevant because they won’t duplicate the ideas in a way that is a commercial achievement . Remember, the whole idea of Blue Ocean Strategy is to have high value at low cost.
3)Exploit existing demand vs. create and catch new request. You will be creating value so high that you will be attracting customers that never before would have considered entering the market. Nintendo’s Will request to families and seniors. attracted beer drinkers, Southwest Airlines appealed to auto travelers
4)Make the value-cost tradeoff vs. break the value cost tradeoff. If you cut your strategy teeth on Michael Porter’s Competitive Strategy concepts, as I did, you understand that there were only two strategies to chose from, value or low cost. It was understood that you could not have both value and low cost. Kim and Mauborgne have broken that idea and said that you can have high value and low cost and developed the tools to do it , if you don’t break the value cost tradeoff, competitors will easily duplicate what you are doing and the ocean will once again be very red.
The key objectives of the red ocean strategy are to beat the competition and endeavor existing interest
The key objectives of the blue ocean strategy are finding the right advertising opportunity and making the competition irrelevant
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