Blue and Red Ocean Strategy Paper
Blue Ocean Strategy Paper
Karina Visloukh
Marketing/421
April 13, 2015
Creig Foster
Blue Ocean Strategy Paper
The Blue Ocean Strategy
In blue ocean strategy the demand is created instead of fought over. The rules are not is well defined and the opportunity for the profitable growth exists. The competition is made irrelevant. The blue ocean strategy breaks the value-cost trade off. Value innovation is the cornerstone of the blue ocean strategy. Value innovation is innovation is more than innovation. It is about strategy that embraces the entire system of a company’s activities (Blue Ocean Strategy Kenya, 2015). According to the Harvard Business article "Competing in overcrowded industries is no way to sustain high performance. The real opportunity is to create blue oceans of uncontested market space (Kim & Maumborgne, 2004).
The Red Ocean Strategy
In contrast, the red blue ocean strategy the ocean becomes bloody because of the overcrowded competition in market. The rules and boundaries are well established and agreed. The demand is not created like in the blue ocean strategy, instead companies are fighting for the bigger market share within their industry. The blue ocean can be created in the red ocean as well.
Creation of the Blue Ocean within the Red Ocean
For example, if a company is able to bend the existing boundaries within the red ocean, the new demand can be created. As a specific example to demonstrate how the red ocean can become blue, I would like to talk about folding guitar. The folding travel guitar was invented by two individuals, who made sure to patent their unique mechanism that allows to fold the guitar, while not interfering with how it has been tuned. This allows people to have more comfortable travel with their instrument. This is the demonstration how something was created to change the already existing way of owning a guitar.
The Voyage air guitar can be the only player in the music industry market, unless they will
Karina Visloukh
Marketing/421
April 13, 2015
Creig Foster
Blue Ocean Strategy Paper
The Blue Ocean Strategy
In blue ocean strategy the demand is created instead of fought over. The rules are not is well defined and the opportunity for the profitable growth exists. The competition is made irrelevant. The blue ocean strategy breaks the value-cost trade off. Value innovation is the cornerstone of the blue ocean strategy. Value innovation is innovation is more than innovation. It is about strategy that embraces the entire system of a company’s activities (Blue Ocean Strategy Kenya, 2015). According to the Harvard Business article "Competing in overcrowded industries is no way to sustain high performance. The real opportunity is to create blue oceans of uncontested market space (Kim & Maumborgne, 2004).
The Red Ocean Strategy
In contrast, the red blue ocean strategy the ocean becomes bloody because of the overcrowded competition in market. The rules and boundaries are well established and agreed. The demand is not created like in the blue ocean strategy, instead companies are fighting for the bigger market share within their industry. The blue ocean can be created in the red ocean as well.
Creation of the Blue Ocean within the Red Ocean
For example, if a company is able to bend the existing boundaries within the red ocean, the new demand can be created. As a specific example to demonstrate how the red ocean can become blue, I would like to talk about folding guitar. The folding travel guitar was invented by two individuals, who made sure to patent their unique mechanism that allows to fold the guitar, while not interfering with how it has been tuned. This allows people to have more comfortable travel with their instrument. This is the demonstration how something was created to change the already existing way of owning a guitar.
The Voyage air guitar can be the only player in the music industry market, unless they will