The Basic Indepth Concept Of The Red Ocean and The Blue Ocean Strategy.Part-II

RED OCEAN STRATEGY	BLUE OCEAN STRATEGY
Compete in existing market space	Create uncontested market space
Beat the competition	Make the competition irrelevant
Focus on existing customers	Focus on non-customers
Exploit existing demand	Create and capture new demand
Make the value-cost trade off (create greater value to customers at a higher cost or  create reasonable value at a lower cost)	Break the value-cost trade off (Seek greater value to customers and low cost simultaneously)
Align the whole system of firm’s activities with its strategic choice of differentiation or low cost	Align the whole system of a firm’s activities in pursuit of differentiation and low cost.

This time I will be discussing about the in depth of the Blue Ocean strategy which was formulated by the Insead Business School Professors Kim and Mauborgne clearly explains that tomorrow’s leading companies success will not by fighting competitors, but by creating “blue oceans” of uncontested market space which will enhance in terms of market share and profitability and market capitalisation growth. 

There should be a complete paradigm shift which the smart management requires as pioneered in the Blue Ocean strategy as –  “value innovation” leveraging value for both the firm and creating the new customers, outsmarting competitors and unleashing latent demands.

Insead original text where the concepts of Blue Ocean has been given:http://www.insead.edu/blueoceanstrategyinstitute/BOS/index.cfm

The real challenge  lies with the service companies to be in the blue ocean, they should constantly try to come up with innovative ideas and create tangible vales for the product or services to the customers and un served customers.

If not properly managed it can slip down from The Blue Ocean to  The Red Ocean and starts bleeding.Yes it is an intelligent and a very tight walking for the top management guys to keep the firm in The Blue Ocean.

Courtesy: Insead ,France.