Red Queen Effect
Leigh Van Valen proposed the metaphor of an evolutionary arms
race which was appropriate for the description of biological processes
with dynamics similar to arms races. In this processes, an adaptation in
a population of one species may change the selection pressure on a
population of another species, giving rise to an antagonistic
"The rabbit runs faster than the fox, because
the rabbit is running for his life while the fox
is only running for his dinner."
The red queen effect is a metaphor used in the business world to
describe the unsuccessful efforts of a company to get ahead of its
competition. Companies typically research or study the competition
and then implement strategies to help boost their company sales and
Red Queen Effect in Business
This is an effective and practical method of outmaneuvering the
competition. While this technique works in theory, companies might
not achieve their goals because the competition engages in the same
business practice. Despite a company's efforts to surpass the
competition, the company does not move forward or grow.
“Now, here, you see, it takes all the running
you can do just to keep in the same place.”
•If you do nothing, you fall behind.
•If you run hard, you stay in place.
“If you want to get somewhere else, you
must run at least twice as fast!”
•If you transform, you can move ahead.
How does do this transform?
“Red Queen Effect” is in place where there are two emerging strong
competitors who, by trying to stay ahead of the other, keeps improving
their products at a pace that effectively drives the remaining
competitors out of the market or to the brink of irrelevance.
Unlike biological predator-prey relationships, each technology is both
predator and prey. The customer usually benefits from them.
According to Leigh Van Valen
If the longer tree which get longer one way to others in
the forest that consist of the same trees benefit more
from the sun. The trees that in the shadow are
prolonged in order to receive light from the sun.
Otherwise, they will starve and die.
Who will be faster than everbody even than the
industry itself about creating the difference?
It’s all about being innovative.
Organizations that don’t have innovation
culture need adviser like Cheshire cat which
represents knowledge and wisdom in Alice
- Alice: Can you help me to find my way?
- Cheshire Cat: It’s depend on where you want to go to. Where do you
want to go?
- Alice: It doesn’t matter.
- Cheshire Cat: Then, it doesn’t matter which way you choose to go.
In the areas of intense competition, innovation that
created thereby differentiate the value for customer,
dragging companies to the blue ocean.
According to Kim who founder of
Blue Ocean Strategy
Blue Ocean Strategy
A framework which inspires to innovate and develop new demand and
new markets to sell your products instead of fighting with competition
over the same market share and satisfying the same demand.
Characteristics of 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 company’s activities in pursuit of
differentiation and low cost.
The most popular example of blue ocean strategy
is Cirque du Soleil.
• Founded in 1984.
• Canadian Company
• Canada’s largest export.
According to Kim
Cirque made the profit without competing in the
market. They created uncontested market space.
What does the traditional circus offers?
• Animal act
- Rising public concern about the treatment of circus animals.
• Three ring show
- The higher ticket prices discouraged parents from making
What does Cirque du Soleil offers?
• Enchanted and sophisticated clown shifting away from
• Glamorized the tend with glorious external finish and a high
level of audience comfort, more relaxation
Red Queen Effect vs Blue Ocean Strategy
➢In red queen effect, there is an existing market space and
competition occurs in this market space. In blue ocean strategy,
escaping from the fighting in competition thereby creating
uncontested market space.
➢ In red queen effect, companies focus on innovation in same demand
and same markets. In blue ocean strategy, companies focus on
developing new demand and new markets.
➢ In red queen effect, being innovative is the most important term
within the competition. In blue ocean, being creative is the most
important term within the industry.
➢In red queen effect, being quick with in the same industry’s standard
is important. In blue ocean strategy, raising above with in the
industry’s standard is important.
➢In red queen effect, experimental learning is exist. In blue ocean
strategy, observational learning is exist.
➢In red queen effect, in both sides of competition eventually customer
benefit from it. In blue ocean strategy, before the customer, company
have advantage of being first in the uncontested market space.
➢In red queen effect, companies try to respond consumer buying
behavior. In blue ocean strategy, companies try to shape consumer
➢Market penetration cause of red queen effect on companies. Market
saturation cause of companies tending to blue ocean strategy.