4 Differences In Blue Ocean And Red Ocean Strategies, Which Ones Are More Suitable For Business?

YOGYAKARTA - Raising business growth and making the company superior to competitors. So, what are blue ocean strategy and red ocean strategy? What are the differences in blue ocean and red ocean strategies? The answer to this question can be seen in the following article.

According to the Daily Social page, blue ocean strategy or the blue Ocean blue strategy is an offensive strategy carried out by the company to find a new market space or target market and of course there are no competitors.

In the blue ocean strategy approach, the company does not focus on trying to beat competitors, but is looking for ways to create new markets by offering customers unique value.

Inversely proportional to blue ocean strategy, red ocean is a strategy in which companies seek to outperform competitors with the aim of capturing or gaining a larger market share.

This strategy is very commonly used by business people. The method can be in the form of selling products at a cheaper price than competitors, offering better products, working with certain distributors, and so on.

Companies implementing red ocean strategy will generally compete in an industry that is ripe and does not try to create new products that do not yet have competitors.

Differences in blue ocean and red ocean strategies can be seen from several things, including:

1. Market conditions

The most obvious difference in blue ocean and red ocean strategies is market conditions.

In the blue ocean strategy, companies do not have competitors because they are trying to create new products that are not yet in the market. This strategy will run well if the company manages to find new market targets.

Meanwhile, in red ocean strategy, the level of market competition is very tight, where companies are trying to be superior to competitors.

Red ocean strategy commonly run by companies is to offer products that are superior to or sell products at cheaper prices than competitors.

2. Competition

The second difference in blue ocean and red ocean strategies can be seen from competition in marketing products.

Blue ocean strategy is trying to make competition irrelevant, because companies don't have competitors.

Meanwhile, the red ocean strategy is trying to win competition in a market whose industry is defined and mature.

3. Market request

Companies implementing a blue ocean strategy will try to create and reach new demand.

In red ocean strategy, the company's efforts are exploiting market demand.

4. Activity system

In the blue ocean strategy, the company will try to catch up to low cost and product differentiation.

Meanwhile, in the red ocean strategy, companies that run it will focus on one thing, between product differentiation or trying to get cheap production costs.

This is information about different blue ocean and red ocean strategies. Hopefully this article can add insight to the loyal readers of VOI.ID.