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Converting a Red ocean into a Blue Ocean

Provide an example of an industry experiencing a red ocean. In your opinion, how might the industry be converted into a blue ocean?

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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 ...

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.