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Align the whole system of a Align the whole system of a firm's strategic firm's activities with its activities in pursuit of choice O differentiation or low differentiation  low cost. Beat the competition. Make the competition irrelevant. Create and capture new demand. !    Red Ocean Strategy Blue Ocean Strategy Compete in existing market space. Exploit existing demand. cost. Break the value-cost trade-off. ß ß  . Create uncontested market space. Make the value-cost trade-off.

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|        |  % %            &   Focuses on rivals within its Looks across alternative ãndustry industries K  .

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orientation of its industry K . industry Focuses on competitive position Looks across strategic groups Strategic Group within its industry K   within strategic group Focuses on better serving the Redefines the buyer group of the Buyer Group industry K  buyer group Focuses on maximizing the value Looks across to complementary Scope of Product and product and service offerings that of product and service offerings Service Offerings go beyond the bounds of its within the bounds of its industry industry K Focuses on improving price. Rethinks the functional-emotional Functional-emotional performance with the functional.

 Orientation of an emotional orientation of this .

 ãndustry industry Focuses on adapting to external Participation in shaping external Time/Trends trends over time K  trends as they occur .

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