September 25, 2023

Comparison between Red Ocean Strategy and Blue Ocean Strategy

You who are used to work in the realm of business may already be familiar with the terms Red Ocean Strategy or Blue Ocean Strategy. What is meant by the Red Ocean Strategy? What is the difference between Blue Ocean Strategy? Both certainly are marketing practices that will define your business model. Let’s discuss it one by one.

Red Ocean Strategy is a condition where we compete in the same market as competitors. This market is certainly inhabited by many business people who jointly compete and contribute to the existing market. Because of so many business people in this market, the atmosphere of the competition will be so fierce that it is ‘bloody.’ With this competition, the company’s position starts with the market leader, challenger, follower, & teacher. Of course, each position has advantages and disadvantages.

Taking a simple example from the online casino business. The industry is so fierce that a lot of companies are killing each other, pushing each other to the edge of destruction. Agen sbobet online Indonesia is one of the fittest examples of the case. There are more than a thousand practitioners of online casinos in the country, and each year passing by, the number is decreasing greatly.

In this Red Ocean Strategy, every business person will try his best to win the competition and become a market leader. No wonder the Red Ocean Strategy will arise unfair competition, mutually dropping and trying to “finish off” each of its competitors. But apparently, the success of a company is no longer measured by winning a bloody competition in the Red Ocean Strategy. That’s why now comes to a new term called Blue Ocean Strategy.

Blue Ocean Strategy is a strategy to create a new untapped market space.

This strategy emphasizes how the company does not win the competition by conducting a head-to-head strategy with competitors. For more than ten years, this strategy was conceived and successfully practiced by many companies. In other words, don’t compete in the same market. However, open up new markets and make competitors irrelevant. Why do competitors become irrelevant? Because the markets we create have completely new rules for the game. In a way, the Blue Ocean Strategy is the opposite of the Red Ocean Strategy.

Blue Ocean is The One That Matter for Most Startup Business

It is indeed not easy to implement this Blue Ocean Strategy. It takes genius, creativity, and intelligence in seeing the market. Many business people, due to lack of calculation and sufficient financial support, finally stopped in the middle of the road. The rapidly changing global trends actually make the creation of Blue Ocean an increasingly important strategic matter. All Blue Ocean will eventually be copied and turned into the Red Ocean.