Red-vs-Blue-Ocean-Market-Strategy

1.

Red vs. Blue Ocean:
Market Strategy
Companies choose to compete in crowded markets (Red Ocean) or
create new markets without rivals (Blue Ocean).

2.

CHAPTER 1
The Red Ocean: Fight for Customers
It's a tough market where companies battle for existing customers.

3.

Red Ocean Explained
Clear Market Rules
Tough Competition
Bloody Battles
These are established markets. All
Companies fight hard for
The market becomes "red" from
companies know how to compete.
customers in crowded markets.
fierce competition. This means
price wars and aggressive ways to
win.

4.

Red Ocean Strategy: Main Ideas
01
02
Stay in Your Market
Beat Other Businesses
Work within the market you're already in. Don't try to make new
Your main goal is to be better than rivals. Win over customers who
markets.
are already there.
03
04
Pick Value or Low Price
Plan to Win
You have to choose: offer something special, or sell at a low price.
Everything your company does should help you beat your
You can't do both at once.
competitors.

5.

Red Ocean Example: Soft Drinks
Coca-Cola vs. Pepsi
This is a classic 'red ocean' fight. Two huge companies compete for sales
in a market that is full and not growing.
They compete using brands, prices, and small product changes.
The market won't grow much. Most people already drink soda.
If one sells more, the other sells less.
Billions are spent each year on ads just to keep sales steady.

6.

Red Ocean Challenges
Low Profits
Slow Growth
Lots of competition means
As time passes, growing
lower prices. Costs stay the
becomes harder. The market is
same or go up. This results in
full, and getting new
very small profits, sometimes
customers costs a lot more
too small to keep going.
money.
Less New Ideas
New ideas are held back by
old rules and common
practices. Companies mostly
focus on just keeping up with
rivals.

7.

Red Ocean:
Fierce
Competition
These markets are tough and crowded. Companies must fight harder,
move faster, and be smarter than many rivals. Everyone is trying to get
the same limited customers and profits.

8.

CHAPTER 2
The Blue Ocean
This is a calm space with no competition. New ideas create new markets and attract new customers.

9.

What is a "Blue Ocean"?
Untapped Space
Creating New Demand
Value Innovation
Blue oceans are new markets you
Instead of fighting for old customers, a
Win by being unique and keeping costs
create. There's no competition.
blue ocean finds new ones who aren't
low. No need to compromise.
buying similar things.

10.

Blue Ocean Strategy: Key
Ideas
Find New Markets
Instead of fighting rivals, find new market areas with no
competition.
Offer Value & Low Cost
Don't pick between being special or being cheap. Do both
at once.
Involve Everyone
Make sure your whole company helps create new and
valuable things for customers.

11.

Cirque du Soleil: A Blue Ocean Story
New Kind of Show
Cirque du Soleil made a totally new type of show. They stopped
using old circus acts. Instead, they added style and drama.
They mixed theater, acrobatics, and artful stories for a great
show.
They brought in rich adults and businesses who would pay
more, like for a play.
They cut out costly animal acts and star performers, saving
much money.
They fully avoided competing with regular circuses.

12.

Advantages and Risks of Blue Ocean Strategy
Big Growth Ahead
Blue oceans offer big chances for growth and money. You can
lead the market without competition.
Needs Brave Ideas
To succeed, you need brave ideas, good timing, and the
courage to do things differently from others.
Always Risky
Blue ocean plans have more risks. It's hard to make new
markets. Carrying out the plan can be tricky, and you might
guess wrong about what customers want.

13.

Blue Ocean:
New
Opportuniti
es
These are open spaces. Here, you create your own path. You find new
chances with no rivals.

14.

15.

ГЛАВА 3
Переход от алых к голубым океанам
Чтобы перейти от переполненных, конкурентных рынков к новым, инновационным пространствам, нам нужны четкие
стратегии и смелые действия.

16.

How to Make the Transition
The Four Actions
Framework
Find New Customers
Offer Something Unique
Create products or services that are
Look for people who don't buy from
different and not too expensive. Give
your industry now. Learn why they
customers much more value for their
Change what you offer. Remove
don't buy. This helps you find new
money. This makes your products
things you don't need. Make some
ideas and chances your rivals missed.
stand out.
things better, and create new ones.
This helps you find new customers
and make more money.
Example: Tesla made a new market for fancy electric cars. They mixed eco-friendly ideas with strong performance. This
drew in buyers who never thought about electric cars before.

17.

Conclusion: Choose Your Path
Red Ocean: Tough
Competition
Blue Ocean: New Chances
Mix Both Ways
Blue oceans bring big growth. Here,
Smart companies use both ideas. They
Red oceans mean many rivals.
companies make new ideas, new
keep their "red ocean" business safe,
Businesses fight hard for small gains in
markets, and find spaces with no rivals.
but also look for "blue ocean" chances.
crowded markets.
How you compete shapes your company's future. Will you find new areas, or keep fighting in crowded ones?