The first slide of the template immediately attracts attention with an abundance of red and blue. The aim is to capture new demand with a superior product that makes competition irrelevant.īlue Ocean Strategy template consists of four slides, which are made in red and blue colors. When there is limited room to grow, businesses try and look for verticals of finding new sectors where they can enjoy uncontested market share. A blue ocean is vast, deep, and powerful in terms of profitable growth. A blue ocean is an analogy to describe the wider, deeper potential to be found in unexplored market space. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. There is ample opportunity for growth that is both profitable and rapid. In blue oceans, demand is created rather than fought over. Blue oceans, in contrast, denote all the industries not in existence today – the unknown market space, untainted by competition. Products become commodities, leading to cutthroat or ‘bloody’ competition. As the market space gets crowded, profits and growth are reduced. Here, companies try to outperform their rivals to grab a greater share of existing demand. In red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. Red oceans are all the industries in existence today – the known market space. It is based on the view that market boundaries and industry structure are not a given and can be reconstructed by the actions and beliefs of industry players. It is about creating and capturing uncontested market space, thereby making the competition irrelevant. Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. The idea behind it is the referral to the vast marketing options that occurs when an unknown industry or innovation occurs. Blue ocean is a slang term created in 2005.
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