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Red vs Blue Ocean Strategy Explained

Red ocean strategy involves competing in existing markets by focusing on differentiation or low costs, while blue ocean strategy creates new, uncontested markets by breaking traditional trade-offs. The four action framework helps companies pursuing a blue ocean strategy by having them reduce and eliminate some existing factors while creating and raising new factors to establish a new value curve unlike anything offered in current industries.

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1K views2 pages

Red vs Blue Ocean Strategy Explained

Red ocean strategy involves competing in existing markets by focusing on differentiation or low costs, while blue ocean strategy creates new, uncontested markets by breaking traditional trade-offs. The four action framework helps companies pursuing a blue ocean strategy by having them reduce and eliminate some existing factors while creating and raising new factors to establish a new value curve unlike anything offered in current industries.

Uploaded by

rakibart
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
  • Red Ocean vs Blue Ocean Strategy

Red ocean VS Blue ocean strategy :

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

The four action framework : four action frame work to break the trade-off between :
differentiation and low cost.
Reduce Which factors should be reduced well below the industrys standard?

Eliminate Which of factors that the industry takes for granted should be eliminated?

A new value curve

Create Which factors should be created that the industry has never offered?

Raise Which factors should be raised well above the industrys standard?

Red ocean VS Blue ocean strategy : Red Ocean Strategy Blue Ocean Strategy Compete in existing market space Create unconteste

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