Blue Ocean Strategy Versus Red Ocean Strategy

DEFINITION OF STRATEGY: _“Strategy is a pattern of the fundamental goals of the walk and planned,
the distribution of resources and the organization of interaction with the market, competitors and
factor-environmental factors.”_ -John A. Byrne _

 “The core of the strategy is how to survive in a competitive world, how to create a better
perception in the minds of consumers, to be different, identify strengths and weaknesses
competitors, specializes, to control one simple word in the head, which provide leadership and
direction to understand the reality of the market by becoming the first of which became
better.”_

RED OCEAN STRATEGY: Definition: Red Ocean Strategy is a head to head battle where the players
of a particular segment compete with each other remaining in the same market space i.e. within the
boundaries of the same industry on the principle of ‘competitive advantage’.

 Characteristics:
 Deals with all the industries in existence today.
 Market space is known as it has been created and contested.
 Industries’ boundaries are defined and accepted.
 Competitive rules are known.
 Opportunities for growth and profit are reduced.
 Works on the principle of competitive advantage.
 Low cost or differentiation.
 Beat the competition.
 Exploit existing demand.

BLUE OCEAN STRATEGY: Definition: Blue Ocean Strategy is a creative battle where the
players of a particular segment don’t compete with each other remaining in the same market
space; instead explore, create and acquire new market spaces by dealing with new demand
through the principle of ‘ value innovation’.

 Characteristics:
 Donates to all the industries not in existence today.
 Market space is unknown as it has been uncontested and is to be created.
 Industries’ boundaries are not yet defined as they will be new industries.
 Competitive rules are to be explored and created.