Blue Ocean or Red Ocean

Blue Ocean or Red Ocean:

Are you in the blue ocean or red ocean?

Red Ocean Strategy: If you are competing like many businesses in the existing market then you are in the red ocean. In the red ocean, businesses focus on existing customers and try to exploit existing demand. People of the red ocean give greater value to customers at a higher price and reasonable value to customers at a lower price. In this ocean you have two choices to beat the competition – either differentiate your product or lower your cost. This strategy is about brand management.

Blue Ocean Strategy: If you creating a new and uncontested market then you are in the blue ocean
In this strategy, you explore a new market hence competition becomes irrelevant. In the blue ocean, businesses focus on non-existing customers. People of the blue ocean create new demand and give greater value to customers at a lower price. This strategy is about brand creation.

People always ask me which strategy is better?

This is a very tough question because every strategy has its own advantages and disadvantages.
If you are able to take the maximum risk, if you are ready to face a new challenge because it is not easy for you to create a new market, if you want limitless growth, if you can innovate, if you don’t want to compete with each other in the existing market, if you are ready to completely explore new market if you are not boring kind of person and love thrilling adventures and want to do something different than go for blue ocean strategy.

If you want a safe game, easy entry and your objectives are only to earn money then go for the red ocean strategy.

In the end, I would say know what works and what does not work for you.