“Disruption” is evolving as a buzz work in today’s digital era. It means any kind of disturbance which interrupts an event, activity, or process. The changes in processes or innovation that give a boost to a brand, organization and create a new completion give rise to the Blue Ocean Strategy. The theory of this strategy was developed by Renée Mauborgne and W. Chan Kim that focuses on disruption in existing market space.

Blue Ocean and Red Ocean strategies are commonly used by marketers or managers performing management role to compete with the market trends and create a new space to step in a different market segment.

Red Ocean

Red ocean - a business coach can help get out of it.

Red Oceans can be understood by the general competitive environment. The companies/organizations that play in the existing market, competing for rivals without thinking of innovations are difficult to ascertain growth and stability.

Red Oceans represent the known market space, acknowledging all the industries in existence. In this contested market space boundaries are defined and accepted, and the competitive rules of the game are well understood. Furthermore, as the Red Ocean gets ever more crowded, scenarios incorporating profits and growth are evermore condensed, leaving products turning into commodities.

Blue Ocean

 

Blue Oceans are understood through niches. Blue Oceans are uncontested, have zero to little competition, and are created from organizations wishing to diversify through services or products.

Blue oceans are categorized by untapped market space, demand creation, and the opportunity for highly profitable growth which are created from within red oceans by enhancing, expanding and developing industry boundaries. Blue oceans are concerned with creating successful new products which provide better performance than existing products. Successful new products provide benefits that significantly differ from current offerings. Blue Oceans seek growth opportunities by diversifying operations, this is typically risky as it involves learning new operations and dealing with unfamiliar customer groups. Moreover, it is understood that creating blue oceans is not a static achievement but a dynamic process. Once a company creates competitive advantages, and its superior performance is shown, sooner or later imitators begin to appear in the market. Marketers seek to assimilate a competitive edge by offering customers something that is not available elsewhere, which creates a blue ocean strategy is concerning.

It is necessary for a company to develop certain changes, to take a step forward towards innovation and compete by creating a different/new market segment. These types of companies can grow their chances of sustainability else they are left behind in a red ocean. There are many examples like Kodak & Nokia who didn’t follow change and accept the new trends floating in the market, they realized it very late that they are in a need to develop blue ocean, as a result, these companies stay behind and acquired by someone else.

If you would like to understand more about this and how it can help your business, contact me or visits my website and we can have a discussion