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Red vs. Blue Ocean Strategy Explained

The document contrasts Red Ocean and Blue Ocean strategies, highlighting the former's focus on competing in existing markets versus the latter's aim to create uncontested market spaces. It introduces the 4 Actions Framework for value innovation, emphasizing the importance of addressing non-customers and optimizing value propositions. Additionally, the Strategic Canvas is presented as a tool for diagnosing and developing value innovation through visual exploration and communication.

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4 views12 pages

Red vs. Blue Ocean Strategy Explained

The document contrasts Red Ocean and Blue Ocean strategies, highlighting the former's focus on competing in existing markets versus the latter's aim to create uncontested market spaces. It introduces the 4 Actions Framework for value innovation, emphasizing the importance of addressing non-customers and optimizing value propositions. Additionally, the Strategic Canvas is presented as a tool for diagnosing and developing value innovation through visual exploration and communication.

Translated by

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Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd

Red Ocean Strategy Blue Ocean Strategy

Compete in the existing space of the Create a space without competition in


market. the market.
Defeat the competition. Make the competition lose everything
importance.
Exploit the existing demand in the Create and capture new demand.
market.
Choosing between the dilemma of value or Break the dilemma of value or cost.
cost.
Align the entire system of the Align the entire system of the
activities of a company with the activities of a company with the
strategic decision of the propósito de lograr diferenciación y
differentiation or low cost low cost.
The Blue Ocean Strategy involves processes and subprocesses, that is within
of each stage that companies seeking to excel in a 'blue ocean' market
"blue" experiments, there are tools that can be listed as steps
arranged to identify their competitive advantage more precisely

Identification of Innovation in Value (Value added to the customer: Creation of


Framework of the 4 Actions:

The 4 Actions Framework establishes the main parameters


devaluation of value that the company possesses to optimize them and those that
they lack to search for and implement them. The four actions Remove, Reduce,
Increase and Create are linked to develop a value curve.
Companies typically focus on addressing the needs of the
regular clients segmenting existing markets over and over again,
which sometimes leads to creating segments that are too small to be
exploiters.
Some non-customers know the company or the product, but the company or
the product did not meet its expectations, while others do not consider it.
the product or is beyond their economic means, making it unfeasible.
Their needs are met in other ways or simply ignored, but
both types of customers can become very profitable if they are transformed
value proposition.
STRATEGIC CANVAS

Strategic Canvas, also called


The Strategic Framework is a tool
that allows companies to carry out:

A diagnosis

° A practical framework for development

of innovation in value
The canvas strategic
proposed by the authors is
a coordinate axis where
a series of is represented
Key Success Factors
(FCE)
Visual Awakening.

Visual Exploration.
PHASES OF
CREATION OF
canvas Field Work.
STRATEGIC
Visual Communication Finalization of the canvas
strategic.
A highly important element and
basic that is part of the Frame
Strategic is the value curve, which is
define as the 'Basic component of
strategic framework and constitutes a
graphic representation of performance
relative of a company in the
regarding the variables of the
competition in its industry.
Kim, W.; Mauborgne, Renée. 2005

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