Business Strategy 499 '10

Companies have long engaged in head‐to-head competition in search of sustained, profitable growth. They have fought for competitive advantage, battled over market share, and struggled for differentiation. Yet in today’s overcrowded industries, competing head‐on results in nothing but a bloody “red ocean” of rivals fighting over a shrinking profit pool. Most companies compete within such red oceans, this strategy is increasingly unlikely to create profitable growth in the
future.
From the reading provided I came to the point that tomorrow’s leading companies will succeed not by battling competitors, but by creating “blue oceans” of uncontested market space ready for growth. Such strategic moves— termed “value innovation”—create powerful leaps in value for both the firm and its buyers,representing rivals obsolete and control new demand.


The best way to differentiate RED and BLUE ocean strategy....