Red Ocean Traps cautions against falling into the trap of competing solely on price from "summary" of Blue Ocean Strategy with Harvard Business Review Classic Article “Red Ocean Traps” (2 Books) by W. Chan Kim,Renée A. Mauborgne
Competing solely on price in a crowded market is a common strategy that many businesses fall into. This approach often leads to a downward spiral of price wars, shrinking profit margins, and limited differentiation. Companies end up cannibalizing their own market share in a race to the bottom, ultimately damaging their long-term viability. By focusing solely on price competition, businesses neglect other important factors that can drive value for customers. They fail to innovate in areas such as product design, customer experience, or branding, which could set them apart from competitors and attract new customers. In the long run, this myopic focus on price can erode the perceived value of the product or service, leading customers to see it as a commodity rather than a unique offering. Moreover, competing on pri...
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