These two approaches represent

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In a market where "cheaper" is often synonymous with "less value", strategic positioning can make the difference. Back to index Blue Ocean Strategy vs. Red Ocean Strategy: Two Approaches Compared The distinction between Blue Ocean Strategy and Red Ocean Strategy was introduced by the above-mentioned professors W. Chan Kim and Renée Mauborgne and is the result of years of research on hundreds of companies in different industries.


These two approaches represent opposing philosophies on how to compete and thrive in markets. Back to index Red Ocean Strategy: Competing in Saturated Markets Red Ocean describes existing, highly albania phone number list competitive and often saturated markets where companies try to dominate by offering lower prices, higher quality, or incremental innovation. The term “red” evokes the metaphor of blood-stained waters, an image that evokes the fierce battle between competitors.


This approach reflects traditional strategies based on the concept of “competing better” within an established industry. It focuses on improving the same competitive factors, such as cost, performance or service, without creating new perceived value. A typical example is the smartphone market. Brands such as Samsung and Apple compete directly on technology, design and price. Companies try to steal customers from competitors, but this often leads to price wars that reduce profit margins.