The market universe has never been constant; rather, blue oceans have continuously been created over time but what is this blue ocean? Why companies now believe in blue ocean strategy? Why it has become so much important for the company to think out of box and ? Why it is more important to make the competition irrelevant rather than beat the competition? Why a combo of value-innovation is a need of today. Before we begin with an analysis of blue ocean strategy first let us understand what is red ocean and what is blue ocean? We regularly hear a lot about Red ocean strategy because Red Oceans are all the industries in existence today-the known market space. In red oceans industry boundaries are defined and accepted. Moreover the rules of competition are also known. the companies compete each other in existing market space and try to beat the competition. Here companies try to outperform their rivals to grab a greater share of product or service demand. More and more players enter into the same market and market gets flooded with a lot of companies competing each other and hence chances of profits and growth gets reduced. Red ocean strategy aligns the whole system of a company’s activities with its strategic choice of differentiation or low cost. Competition becomes so intense that products become commodities or niche, and cutthroat competition turns the ocean bloody. Hence, the term red oceans For more than twenty-five years, competition has been at the heart of corporate strategy. Today, one can hardly speak of strategy without involving the language of competition: competitive strategy, competitive benchmarking, building competitive advantages, and beating the competition. Blue ocean denotes the industries that not existence today the unknown market space or market unattained by competition. Blue Ocean strategy provides a systematic approach to make the competition irrelevant. Blue ocean creates and capture new demand. it aligns the whole... [continues]
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