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Discuss the Blue Ocean vs the Red Ocean Strategy and give at least 5 points of differentiation between them

Home, - Differentiation between Blue Ocean vs Red Ocean Strategy

Question - Discuss the Blue Ocean vs the Red Ocean Strategy and give at least 5 points of differentiation between them. 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.

Answer - Modern business workflow incorporates shift in paradigm. Now the organization's changes their thinking toward efficient strategies and they continuously shift from e-business to business or e-strategy to strategy with view that signifies hybrid strategy i.e. incorporation of efficient strategic planning with internet services provides a powerful force with competitive advantage.

Blue Ocean strategy deals with the identification of uncontested growing markets whereas red ocean strategy deals with the overdeveloped saturated business market. Blue Ocean consists of organizations which are not yet existed, or you can say conceptual marketplace or opportunity. Red ocean consists of all market industries which are known to us and have existence today.

Red ocean industries

  • Healthcare
  • Digital Services
  • Innovation and research
  • Travel
  • Plastic and refinery

Red Ocean

  • Defined marketplace
  • Consists of interdisciplinary businesses
  • Competing with competitors in marketplace.
  • Explore and full fills existing demand
  • Manage value and cost trade-offs

Blue Ocean

  • Uncontested marketplace
  • Treated as opportunities
  • Blue oceans could be created from Red oceans example yellowtail wines USA.
  • Helps in capturing new demand.

Example of Blue Ocean Company

Cirque du soleil: Canadian based company invent a new blue ocean marketplace. The company incorporates circus business consisting of various crazy people in 1980's. The company faced an issue of decreased audience and profits then they think about new market trend.

Original business

1. Target to attract kids audience

2. Earlier the focus was on animals and clowning acts.

3. Suffered from decreased audience

Blue ocean market

1. Realizing winning strategy not to do competition

2. Declining any revenues and profits comparisons

3. Sophisticated experience gains from world class performers

4. Now primary targets are adults, kids are still the part

5. Includes astonishing acts

6. Did not focus on clown and animal shows


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