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Comparison of Blue Ocean vs the Red Ocean Strategy with Examples

Home, - Blue Ocean vs the Red Ocean Strategy

Question: Discuss the Blue Ocean vs the Red Ocean Strategy and provide at least 5 points of differentiation between Blue Ocean vs the Red Ocean. Explain using an example of a company, service or product what the Product Changes (at least one per product change) are which makes this a blue Ocean strategy company, product or service. 

Red Ocean Strategy

Blue Ocean Strategy

Compete in existing market space.

Create uncontested market space

Beat the competition.

Make the competition irrelevant.

Beat the competition.

Make the competition irrelevant.

Exploit existing demand.

Create and capture new demand.

Make the value-cost trade-off.

Break the value-cost trade-off.

Align the whole system of a firm's activities with its strategic choice of differentiation or low cost.

Align the whole system of a firm's activities in pursuit of differentiation and low cost.

Example of blue ocean company

The Canadian based company cirque du soleil invent a blue ocean market place. The nature of the business is circus. The company faced issues due to decreased audiences and less profit.

Original business of the company:

Business target to kids

Circus using clowning and animals

Decreased audiences

Blue ocean market

Targets are adults and kids

Include astonishing acts

Not focusing on animals and clowns


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