of colorful ocean strategies...

For sometime now, it is quite fashionable to hear CEOs, corporate chieftains, head honcos, tribal chiefs (heheh) talk about blue ocean strategy. Made the 'flavour of the month' by management gurus (I shall not propagate further by mentioning their originators...whom I am sure we are all too familiar with...). When i googled red ocean strategy...i found this interesting comparison that i'd like to share with those, who perhaps did not know.

RED OCEAN STRATEGY

Compete in existing market space

Beat the competition

Focus on existing customers

Exploit existing demand

Make the value-cost tradeoff
(create greater value to customers at a higher cost or create reasonable value at a lower cost)

Align the whole system of a firm’s activities with its strategic choice of differentiation or low cost


BLUE OCEAN STRATEGY

Create uncontested market space

Make the competition irrelevant

Focus on non-customers

Create and capture new demand

Break the value-cost tradeoff
(Seek greater value to customers and low cost simultaneously)

Align the whole system of a firm’s activities in pursuit of differentiation and low cost.