What is blue ocean and red ocean strategy with examples?
In a red ocean strategy, an organization has to choose between creating more value for customers and a lower price. In contrast, those who pursue a blue ocean strategy attempt to achieve both: differentiation and a low cost, opening up a new market space. For example, Airbnb didn’t buy homes or hotels.
What is an example of red ocean strategy?
A good example of Red Ocean Strategy is the European airline operator Ryanair (or Southwest if you like in the US). They are competing very successfully in the already saturated red ocean of the short-haul airline business. Their strategy is focused on providing a low-cost no-frills airline.
What is the example of blue ocean strategy?
The first example of blue ocean strategy comes from computer games giant, Nintendo, in the form of the Nintendo Wii. The Nintendo Wii launched in 2006 and at its heart is the concept of value innovation. This is a key principle of blue ocean strategy which sees low cost and differentiation being pursued simultaneously.
Is Coca Cola a red ocean strategy?
Another example where red ocean strategy works is the soft drink industry. Even considering soda, your mind likely goes directly to Pepsi vs. Coke. Technically, Coca-Cola was first on the scene, back in 1886, with Pepsi soon to follow in 1893.
Is Apple an example of blue ocean strategy?
Apple use blue ocean strategy to remove competition and create a new market for new products. Blue ocean strategy helps to the Apple company to develop their own market rather than trying to beat competitors to reach top in the market. Apple iTunes is a good example of Apple blue ocean strategy.
Is Starbucks a blue ocean strategy?
Starbucks is an excellent example of a company that has successfully implemented the Blue Ocean Strategy. Many cafes were already established when Starbucks was launched. Instead of focusing on their coffee, they have developed the Starbucks brand as different, a strategy still unexplored in this sector.
Is Microsoft a red ocean strategy?
Comparing Red Ocean competition to Blue Ocean competition Microsoft is a red ocean competitor. Apple, on the other hand, pioneers new markets.
What is Purple ocean strategy?
The Purple Ocean strategy believes that in today’s business world organizations require both innovative ideas as well as a series of strategies to compete with rivalry and remain functional in the long term.
Is Nintendo a blue ocean strategy?
Instead, Nintendo used Blue Ocean Strategy to redefine market boundaries, creating the best-selling video-game console ever, the Nintendo Wii. Targeting noncustomers, the Wii outsold Sony’s PlayStation and Microsoft’s Xbox combined, until the market was disrupted by smartphones and tablets.
Is Amazon a blue or red ocean strategy?
Amazon products prove that creating blue oceans builds brands. So powerful is blue strategy, that, in fact, in can create brand equity that lasts for decades. Traditionally, companies tend to focus on competition in order to expand their market share in the industry and increase profits.
Is Zara blue ocean strategy?
Zara is another company that has followed Blue Ocean Strategy. Zara has been able to decode the mantra of the fast fashion apparel industry with the help of its strong supply chain management.
Is Apple a blue ocean strategy?
Is Google a blue ocean strategy?
Google mainly implements the Four – action Framework of Blue Ocean Strategy. Google eliminated configuration options for regular users. Google eliminated the search configuration paradigm, removing the need for users to pre- select the Boolean filters AND/OR/NOT (drop- down menus and radio buttons).
What is Nintendo’s strategy?
Their strategies mainly revolve around innovation, pricing and adoption of the latest technologies. Nintendo has been the market leader for a long time but was outdone with the entry of Sony’s Playstation which produced more advanced gaming consoles and thus extending the gaming age bracket.
What is a red ocean market?
Red oceans are all the industries in existence today – the known market space, where industry boundaries are defined and companies try to outperform their rivals to grab a greater share of the existing market. Cutthroat competition turns the ocean bloody red. Hence, the term ‘red’ oceans.
Is Netflix blue ocean strategy?
Netflix. The first company that used the blue ocean strategy is Netflix, a popular subscription-based streaming service.
Is Uber blue ocean strategy?
Rather than competing in the confines of the existing industry or trying to steal customers from taxis, Uber developed uncontested market space that made taxis irrelevant. Uber created a blue ocean, they turned non-customers into customers. In blue oceans, demand is created rather than fought over.