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Writer's pictureGreen Shift Group

Blue Ocean vs Red Ocean frameworks

There are many different strategy frameworks that can help you in the right direction. The Blue and Red Ocean Strategies are two examples of frameworks that consultants all around the world use to assist businesses in defining and achieving their long-term vision.

So, what is the Blue Ocean Strategy? And what is the Red Ocean Strategy? And what is the difference between the two?

"Blue Ocean" is a term that is sometimes used to refer to a market or industry that has not yet been fully explored or developed. The term comes from the idea of a vast, uncharted ocean that is waiting to be discovered and exploited by enterprising individuals or companies. In business, a blue ocean market represents an untapped opportunity for growth and innovation, where competition is low, and demand is high. Companies that can identify and enter blue ocean markets often enjoy a first-mover advantage and can capture significant market share. The concept of the blue ocean strategy was first introduced in a book of the same name by W. Chan Kim and Renée Mauborgne. In the book, the authors argue that businesses should focus on creating new markets rather than competing in existing ones. By creating new markets, companies can avoid direct competition with other firms and instead create a unique, profitable niche for themselves. Overall, the term "Blue Ocean" is often used in business contexts to refer to untapped markets or opportunities for growth and innovation.


"Red Ocean" is a term that is sometimes used to describe a market or industry that is highly competitive and overcrowded. The term comes from the idea of a bloodied ocean, where companies are engaged in fierce competition and are fighting over a limited pool of resources and customers. In a red ocean market, companies compete aggressively on price, quality, and features in an attempt to gain an advantage over their rivals. As a result, profit margins can be thin and growth opportunities can be limited. Companies that operate in a red ocean market must constantly innovate and improve in order to stay ahead of the competition. The concept of the red ocean strategy was also introduced by W. Chan Kim and Renée Mauborgne in their book "Blue Ocean Strategy." In the book, the authors argue that companies should focus on creating new markets and pursuing blue ocean strategies rather than engaging in fierce competition in red ocean markets. Overall, the term "Red Ocean" is often used in business contexts to describe highly competitive and overcrowded markets or industries, where companies must fight fiercely for market share and profitability.


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