Blue Analysis : Blue Ocean Strategy

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W.Chan Kim and Renee Maugborgne article “Blue Ocean Strategy” and Blue Ocean Strategy: From Theory to Practice challenges firms to distance themselves from the fierce competition in the marketplace by utilizing Blue Ocean Strategy versus the dominantly used Red Ocean Strategy. Both Blue and Red Oceans are distinctly different strategies, both logics are important to understand, and they both coexist. By understanding by the underlying logic of both strategies companies will be able to make decisions on what strategy they will prefer to implement. The authors use the colors Red Ocean (color of bloody water) and Blue Ocean (color of clear water) to visually represent the amount of competition in the market (water represents the market). The Red Ocean signifies the entire known market industry today that exists with formidable incumbents that have set the standards, are visible, and accepted by the industry. The Red Ocean focuses on competing in the existing market space and everyone is fighting for the demand side of the equation. The fundamental roots of the orthodox Red Ocean strategy along with company structure environment can be traced and mirror military strategy and its organization. The color red in the Red Ocean is symbolic and is used to represent blood that occurs when two rival fight on the battlefield, and are competing against one another to gain ground. This same Red Ocean metaphor can be easily understood in the business environment. Rivals are trying to
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