1. Ocean Strategies
• Strategic planning and decision making is an important role in
organizational development and sustainability.
• Red Ocean strategy:
• Red Ocean refers to a market space where competition is intense,
and companies compete within the existing market boundaries. It's
characterized by a focus on beating the competition, often leading
to a "bloody" or saturated market.
• Example: The smartphone industry is a classic example of a Red
Ocean. Companies like Apple, Samsung, and Huawei compete
fiercely by continuously improving and introducing new features.
The market is saturated, and competition is primarily based on
incremental innovations and price.
2. Features of Red Ocean Strategy
• They focus on competing in a market place which
already exists
• Focus on beating the competition
• Focus on value / cost trade off means creating
more value for customer but at a higher cost, or
lower cost
• Focus on exploiting existing demand
• Focus on better marketing, lower cost etc
• Kali Peeli Taxi
3. Advantages of Red Ocean Strategy
• Market is already established
• Clear about what service or product customer
wants
• They focus on better marketing and lower cost
4. Disadvantages of Red Ocean Strategy
• Usually an established market leader who will be very
hard to beat
• Numerous niches who are trying to carve out market
share
• Niche marketing involves identifying and serving a
specific segment of the market that has unique needs
or preferences.
• Etsy is an online marketplace that has carved out a
niche by focusing on handmade and vintage
products.(old fashionable goods like clothes, furniture)
• Competition is aggressive
5. Blue Ocean Strategy
• Blue Ocean refers to an uncontested market space
where a company creates and captures new demand
by offering innovative products or services. It involves
moving away from head-to-head competition and
creating a new market space.
• Peloton combined technology, fitness, and a social
community to create a unique and integrated home
fitness experience. They introduced a stationary bike
and treadmill with live and on-demand classes
delivered through a screen, allowing users to engage
in interactive and guided workouts.
6. Features of blue ocean strategy
• Grounded in data
• Differentiation and low cost
• Try to make competition irrelevant
• Step by step process
• Maximizes opportunity while minimizing risk
• Creates win-win strategy- win for buyers,
company and employees and stakeholders.
7. • By creating a low-cost car, Tata Motors created a
new market space, which did not exist before.
Amul: Amul is a cooperative dairy company that
produces and markets milk and dairy products in
India. Amul's Blue Ocean Strategy was to create a
market for dairy product
• Unique selling proportion
• E.g Starbucks, Ola (by creating an App)
• Tesla created electric cars
8. Differentiate between Red and Blue
Ocean Strategy
• Red Ocean Strategy
• Cos compete with each
other in the existing
market place
• Defeating the
competition
• Exploring existing
consumer demands
• Blue Ocean Strategy
• Cos tend to create new
and uncontested
marketplace
• Create situations where
the competition is
irrelevant
• Creating and capturing
new consumer
demands
9. • Red Ocean Strategy
• Making the trade off
between cost and value
• Achieving either
differentiation or low
cost
• Blue Ocean Strategy
• Breaking the trade off
between cost and value
• Created around
innovation and creation
of superior value
propositions
10. Purple Ocean Strategy
• The "Purple Ocean Strategy" attempts to
combine the strengths of both approaches. It
involves creating innovation in existing
markets (red ocean) by introducing new,
unique elements or features that disrupt the
current market dynamics and render the
competition less relevant (blue ocean).
11. Characteristics of Purple Ocean
strategy
• Mixture of both red and blue ocean strategy
• E,g Samsung, Motorola and Nokia
• Exit if it is red or survive if it is blue ocean
strategy
