Converting a Red ocean into a Blue Ocean
Not what you're looking for?
Provide an example of an industry experiencing a red ocean. In your opinion, how might the industry be converted into a blue ocean?
Purchase this Solution
Solution Summary
The solution discusses the differences between the red ocean and blue ocean. In business, the idea is to turn red ocean into blue ocean.
Solution Preview
Red Ocean/Blue Ocean Strategies
Kim and Mauborgne (n.d.) noted that the business universe consists of two distinct kinds of space, which we think of as red and blue oceans. Red oceans represent all the industries in existence today - the known market space. In red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are well understood. Here, companies try to outperform their rivals in order to grab a greater share of existing demand. As the space gets more and more crowded, prospects for profits and growth are reduced. Products turn into commodities, and increasing competition turns the water bloody.
The blue ocean is literally a place where the boundaries beyond are limitless. It is entirely blue as far as the eye can see. San Juan (2012) refers to the blue ocean as "a potential limitless consumer base where one can market their product or service".
More often than not 'there are sailboats that populate the ocean and the boats are colored red. If there are too many red boats milling around in the ocean, then it almost becomes like a red ocean'.
San Juan (2012) recommends that the only way to turn a Red Ocean company to Blue Ocean is to innovate.
According to Kim and Mauborgne (2005) the best way to beat your competition is, in fact, to stop competing against them. This, according to them, can be done by launching completely new industries and by expanding the boundaries of an existing industry.
Here are examples of companies that transitioned from Red ocean to Blue Ocean:
- Apple
As a fast rising hardware and ...
Purchase this Solution
Free BrainMass Quizzes
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce