June 1, 2016

Red Ocean vs Blue Ocean

What characterises Red Ocean Dwelling vs Blue Ocean Creating Organisations?

Red Ocean companies try to outperform their rivals to grab a greater share of existing demand.  As the market space gets crowded, prospects for profits and growth reduce.  Products become commodities and cut-throat competition turns the ocean bloody red.

Blue Ocean companies, in contrast, access untapped market space and create demand, and so they have the opportunity for highly profitable growth.  In Blue Oceans, competition is irrelevant. Yes, imitators arise, but experience shows there is a wide window of opportunity to stay ahead of imitators.

What consistently separates winners from losers in creating Blue Oceans is their approach to strategy.  Creators of blue oceans do not use the competition as their benchmark, but follow a different strategic logic that we call value innovation.

Instead of focusing on beating the competition, Blue Ocean-creating organisations make them irrelevant, by simultaneously creating a leap in value for buyers, and their organisation, thereby opening up new and uncontested market space.

Blue Ocean creating businesses follow a different strategic logic:

  • We Challenge Industry Conditions & Paradigms
  • We Focus On Customers, Not Competitors
  • We Don’t Segment Customers, We Aggregate Them
  • Our Assets Capabilities Are Not Fixed, They Are Fluid
  • We Solve Problems Across The Entire Supply Chain

To learn more about Blue Ocean Strategy:

  • DOWNLOAD THE MAP – Download our 12 Week Blue Ocean Strategy Navigation Map

  • WEBINARS – Attend a webinar (podcasts coming soon!)

  • WORKSHOPS – Attend one of our 2 day Deep Dive workshops, to immerse yourself in the tools as you apply them to your own business

  • BOOKSTORE – Visit the Amazon bookstore for a curated list of books, audio and articles

Or view these short videos

How to Devise And Implement Your Blue Ocean Strategy

Click the image to discover our navigation map, to build execution into your Blue Ocean Strategy in 12 weeks

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Source: Extracts from the book Blue Ocean Strategy. (c) Kim & Mauborgne, 2015. Boston. Harvard Business School Publishing