Recognizing the difference between red and blue oceans is crucial from "summary" of Blue Ocean Strategy with Harvard Business Review Classic Article “Red Ocean Traps” (2 Books) by W. Chan Kim,Renée A. Mauborgne
Understanding the distinction between red and blue oceans is essential for any business aiming to break away from competition and create new market spaces. Red oceans represent industries that are overcrowded with competitors, resulting in fierce competition over a limited market share. In contrast, blue oceans symbolize untapped market spaces with ample opportunities for growth and innovation. By recognizing the difference between these two types of market environments, companies can strategically position themselves to avoid the red ocean traps and instead navigate towards blue ocean success. In red oceans, companies often find themselves caught in a vicious cycle of competing solely on price or incremental product improvements, leading to a race to the bottom in terms of profitability. On the other hand, blue oceans offer companies the chance to create new demand by offering unique value propositions that set them apart from competitors. This shift in focus from co...
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