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  • Blue Ocean

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    RITWICK BHANDARI
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    Blue Ocean Strategy describes two types of markets - red oceans and blue oceans. Red oceans are existing markets with known boundaries and fierce competition over market share, while blue oceans represent untapped markets where demand is created rather than fought over. A blue ocean strategy creates a new market space through value innovation that breaks the existing trade-offs between cost and benefits. It renders competition irrelevant by making the rules of the game obsolete. The goal is to explore unknown customer needs and create new demand instead of battling competitors in established red ocean markets.

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    Blue Ocean Strategy describes two types of markets - red oceans and blue oceans. Red oceans are existing markets with known boundaries and fierce competition over market share, while blue oceans represent untapped markets where demand is created rather than fought over. A blue ocean strategy creates a new market space through value innovation that breaks the existing trade-offs between cost and benefits. It renders competition irrelevant by making the rules of the game obsolete. The goal is to explore unknown customer needs and create new demand instead of battling competitors in established red ocean markets.

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    4 views4 pages

    Blue Ocean

    Uploaded by

    RITWICK BHANDARI
    Blue Ocean Strategy describes two types of markets - red oceans and blue oceans. Red oceans are existing markets with known boundaries and fierce competition over market share, while blue oceans represent untapped markets where demand is created rather than fought over. A blue ocean strategy creates a new market space through value innovation that breaks the existing trade-offs between cost and benefits. It renders competition irrelevant by making the rules of the game obsolete. The goal is to explore unknown customer needs and create new demand instead of battling competitors in established red ocean markets.

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    © All Rights Reserved
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    of 4

    Blue Ocean Strategy

    Red Ocean VS Blue Ocean

    Red Ocean Blue Ocean

    All industries are in existence, with a known market space. New industries(not in existence) with an unknown market
    space.

    Industry boundaries are defined. Industry boundaries are not defined.

    Competitors try to outperform others by gaining a higher This is an untapped market wherein the demand has to be
    market share. created to gain higher value.

    Exploit existing demand. Create new market and thereby new demand creation.

    Competition is relevant for the players. Competition becomes irrelevant.


    Key Takeaways

     The strategic aim is to create new rules of the games by breaking the existing value/cost trade-
    off  and thereby creating a blue ocean.
     Company must understand when to become a blue ocean in the market.
     Competition is made irrelevant by creating a leap in values for both buyers & company itself.
     Market Boundaries and industries do not exist and created by the belief of Industry players.
     Effective Blue ocean strategy is about taking risk and minimizing it at the same time.
     Blue Ocean strategy is about exploring the untapped demand in the market.
    Thank You

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