Red and Blue Ocean Strategy

The market is composed of 2 types of oceans: Red and Blue. Red oceans are all the industries in existence today, the known market space whereas blue oceans are all the industries not in existence today, the unknown market space. Cut throat competition in existing industries turns the ocean bloody red. Hence, the term red ocean. On the other hand, unexplored competitions are vast, deep and powerful in term of growth and opportunity. Hence the term blue ocean.

Red ocean strategy is a zero sum game, since the competitors are fighting against each other for the limited demand. However , blue ocean is a non zero sum game, since there is a growth in demand. For instance, when Tesla started manufacturing e-cars, none of the industry leaders were into the same segment at the scale of Tesla. The demand of e-cars has been growing exponentially.

At times it may feel like nothing more is left to innovate, the things are hard to innovate now. We have reached to a saturation level. Nevertheless, there is always a bull market somewhere going on. Likewise, there is always an opportunity somewhere in the industry. It takes hard work along with luck to identify or to create it.

It doesn’t mean blue ocean strategy work all the time. May be you have a better idea to reduce the costs and compete better with the existing competitors. You are free to jump in the red ocean. Dmart, a successful retail chain in India, has shown us that. Time back teaching kids to code was a blue ocean strategy. However, since the time programming has been added to the new educational policy, the same industry has turned to a red ocean strategy as there are too many competitors.

Choose what works best for you!

If you are seeing an ad in the article, please click here to know how to browse internet ad free.

As usual you can share this exciting site you figured out with your closed ones, just with a click…