Joennel M. Semilla Ms.

Rowena Garcia
BSA103 The Entrepreneurial Mind

KEY IDEA FACTS

Blue ocean strategy is different from other Blue ocean strategy can:
entrepreneurs’ strategy. Like what have been
 Create uncontested market space
compared to red ocean strategy; Blue Ocean strategy
is different. We think, by using Blue ocean strategy  Make the competition irrelevant
these are those entrepreneurs who only wants a
 Create and capture new demand
peaceful business instead of competing with other
entrepreneurs. For us, it is much better.  Break the value/cost trade-off
 Align the whole system of a company’s activities in
Red ocean strategy is a plan of action to make a pursuit of differentiation and low cost
product survive (and make profits) in a competitive
market. The strategy aims to beat the competition.
Red ocean strategy supports
Red ocean strategy gives a clear view of customer
needs in an established market. It’s a big advantage,  to compete in existing market space,
but the competition is fierce—every entrepreneur is
 beat the competition,
trying to carve out a role for themselves by offering
better quality and deals. A red ocean strategy will  exploit existing demand,
work if the organization has faith in its product and
 make the value/cost trade-off,
strategies.
 align the whole system of a company's
activities with its strategic choice of
differentiation or low cost.
IMPORTANCE
Creating a blue ocean is difficult and generally requires the company to innovate (value innovation)
in a way that creates a previously non-existent or unrealized demand. The importance of the blue ocean
strategy is that it takes company from market competing to market creating, it can also create brand equity that
lasts for decades which allows them to exploit unripe growth without the need for competitive differentiation
or cost advantage. A company that develops Blue Ocean strategy will have more success, fewer risks, and
increased profits in a blue ocean market.

The Red Ocean Strategy has the market that has already existed, so no need to create a new
marketplace.t The services and products have good demand by the customers. Many customers want the
products; so, the new companies can utilize the existing consumers. Additionally, the company can recruit
skilled employees easily who have deep experience in the sector. Finally, the new companies can get ideas on
how to improve the business from their competitors.
WHAT CONFUSES ME
As the lesson goes well, there are no topics that confuses me so far. All of my questions have been answered
through the discussion.

DEFINITION
A blue ocean strategy is based on creating demand that is not currently in existence, rather than fighting over
it with other companies, it is also refers to a market moving in a direction where there is little to no
competition. In a broader business sense, it could mean creating a product or service that solves a problem in a
way none other does. The key to a successful blue ocean strategy is finding the right market opportunity and
making the competition irrelevant.
Red ocean strategy refers to the traditional marketing strategy to compete with the competitors. It is
demonstrated when many companies compete to achieve a competitive advantage in the existing market. These
companies contest in the same marketplace to beat their opponents. Red ocean strategy influences the company
to provide better service to buyers. It mainly focuses on the existing customers and buyers rather than creating
new customers. So, they provide better services and products to attract customers.