Where in there the competition is not clearly defined but the important note is that there is value innovation which is built on the value creation and the low pricing of the commodities. Which was known as the blue oceans strategy - a new and unexploited market space untainted by competition where demand is created rather than fought over.in there the rules in the blue ocean is not created in the initial stage which makes the competition irrelevant and represents an opportunity for new ideas and profitable growth. There for the alternative market approach was introduced by W.CHAN KIM and RENEE MAUBORGNE to solve the red oceans limitations.
Competitive rules are very clear to the competitors.īut the red ocean strategy doesn’t always make money because due to the globalization and the technological development in the world the companies grew where there was a limited niche market to their products where they had to face the saturation and the commoditization.
Where the competitive strategy of the companies lies on the low cost and the differentiation of the products. But in there mainly the players in the industry shares the same pie. In the traditional business strategy considering the market share and the profitability.
This concerns on how amazon has sailed in the blue waters and how you can use the blue ocean strategy in your business.
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