COMPARISON BETWEEN OCEAN STRATEGIES

Comparison Between Ocean Strategies

[Name of the Instituion]

Abstract

This paper aims to justify the arguments made concerning to different ocean strategies with regard to the marketing environment. In this paper the theories and articles of Kim & Mauborgne are highlighted in order to shed light on the specifications of the strategies. These strategies include blue ocean strategy along with the red ocean strategy. The vieoints of the authors are discussed with a greater clarity in order to clearify both the terms with respect to different references provided. Red Ocean strategies compete in existing markets which is referred to head to head competition, where as Blue Ocean strategies exist in creation of new markets which captures the new demand. There fore the paper defines the clear differences and benefits of both the strategies. Both the stratagies carry their own significance and suitability depending on the environment of the industry. It is the responsibility of the manager to analyze and put the most appropriate strategy for their business.

Key Words: Blue ocean strategy, Red ocean strategy, innovation, competition, Cirque, rivals. Blue Ocean Strategy versus Red Ocean Strategy

Introduction

The article by Kim & Mauborgne argues that two different strategies operate in the marketing environment. These strategies tend to shape the environment as per the marketers approach. They stated that when managers develop corporate strategies they initially analyze the environment of the industry in order to make sure which strategy would be suitable for their business. In this paper the study on Blue Ocean Strategy in the competitive market place against Red ocean strategy will be discussed according to the viewpoint of Kim & Mauborgne. Red Ocean strategies compete in existing markets which is referred to head to head competition, where as Blue Ocean strategies exist in creation of new markets which captures the new demand. Further in the paper a detailed study will be conducted to analyze the difference between both the strategies in a competitive market. Red Ocean Strategy aligns the whole system of the company and its activities with its strategic choice of differentiation and low cost, on the other hand blue ocean strategy supports the entire system of the company and its related activities in recreation of differentiation and low cost (Kim & Mauborgne, 2005, pp. 105-121). Blue ocean strategy was formed in order to open new markets which can be innovative as per the new demands of the consumers. Additionally, raise the possibility of creating a winning strategy based on the “non-competition”, which is only possible to explore new territories; symbolizing a blue ocean, unlike the red represents the struggle between the companies. Although both the strategies carries their own significance but it is essential for the companies to realize the use of strategies depending on their market situations.

Overview of blue Ocean Strategy according to Kim & Mauborgne

According to the view point of Kim & Mauborgne Blue ocean strategy creates a win win situation for the buyers as well as the sellers. It is often considered more effective in the ...