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strategies, Blue Ocean, Red Ocean
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Blue Ocean Strategy
SUBMITTED BY GROUP 5
ANUJA SHARMA PRATEEK LONARKARSHAGUN AGGARWAL SHIVANI RAWATTIJEEL KUMAR TARUN VIBHOR JAIN
Overview
• Blue ocean • Denotes industries not in existence
• Unknown market space
• Demand is created rather than fought over
• Ample opportunity for growth.
• Two ways create blue ocean
1. Give rise to a new industry
2. By altering boundaries of an existing industry i.e from red ocean
• Red ocean • Represents industries in existence
today
• Known market space
• Industry boundaries are defined
• Competitive rules of the game are understood.
• Companies tries to obtain greater existing demand.
Blue ocean framework
Blue ocean strategy works around the following framework:
1. Eliminate the factors that do not create an appetite among the customers
2. Creation of concepts that the industry has never offered
3. Raising the ideas above the industry standard
The case of Cirque
Eliminate
• Star performers• Animal Shows• Aisle concession sales
Create
• Theme• Artistic music and dance• Multiple productions with different themes and storyline• An environment of both circus and theatre
Raise
• Unique venue• High level of audience comfort
PEST Analysis
Political Ban on Animals that were used
Economical Less budget in entertainment by people
Social Circus getting less popular and its share is taken by different
substitutes
Technological Materials being used are getting cheaper and stronger
Porter’s 5 force
So, are Red Ocean Strategies Worthless?
NO!!!1. A company must master its traditional markets using conventional strategic planning tools.
- ‘It will always be important to swim successfully in the red ocean by out competing rivals. Red oceans
will always matter and will always be a fact of business life’.
- But ‘to focus on the red ocean is therefore to accept the key constraining factors of war- limited terrain
and the need to beat an enemy to succeed – and to deny the distinctive strength of the business world: the
capacity to create new market space that is uncontested.’
2. But to sustain high performance, companies must create their own blue oceans, and make the competition
irrelevant! - But blue oceans are largely unconscious.
a) no analytic fireworks to guide its creation and implementation,
b) no principles to effectively manage risk,
c) therefore too risky for managers to pursue.
Thank You
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