![]() ![]() The Blue Ocean Strategy is focused on innovation. Growth is limited in this marketplace because thousands of other ‘fish’ occupy the same space. The main focus of the Red Ocean Strategy is on gaining a competitive advantage through better products or lowered pricing. As a result, brands within this ocean struggle to grow and profit due to the cut-throat competition, hence the term red ocean. You’re creating a product or service that’s adding to existing resources.Įxisting markets are filled with hundreds or thousands of similar products. So a new business in the red ocean is just another drop. This ocean or marketplace has market boundaries and rules that are well known and accepted, both by businesses and consumers. There are a lot of other tools in this book that any business owner or corporate department manager can quickly apply and improve in their own business.The red ocean encompasses all industries known today. Finally, what can you create that your competition isn't doing? Southwest created the short point-to-point departure system that made shorter trips more affordable for everyone. Southwest is known for their great customer service. ![]() What is your competition doing that you can do better, but that will also raise the value for your customers? For Southwest, it was the level of service. Now, although serving peanuts instead of a full meal is common-place today, when Southwest started doing it, it was a completely new idea. ![]() Then look at what you can reduce that will set you apart. For Southwest Airlines, it was seat assignment. Look at your competition and identify what they are doing that can be completely eliminated without damaging your value to customers. It is a great way to have a fresh look at just about every aspect of your business. Since reading that chapter, I've been applying the grid to nearly everything I've come across. One such methodology is the Eliminate-Reduce-Raise-Create grid. This book takes something that any business person knows intuitively and puts it into a concrete methodology that can be applied in your own business. ![]() Although each of the companies highlighted in the book were not new information for me, I had never thought about what they've accomplished in terms of a Blue Ocean Strategy. Blue Ocean Strategy really opened my eyes to a new way of looking at strategy. ![]()
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