Apart from the theoretical point of view, we would like to see this strategy from a practical point of view. We all know the red ocean is a market where a product or a service is sold by everyone, as well as the blue ocean, which is creating a monopoly, like something unique which is giving us an advantage. In any strategy, we have to analyze a couple of things. These are like financial condition, technology, competitors, market share, predictive analysis, etc. In this case, data analysis, financial analysis, framework, business model, and execution will help us. We will discuss these three types of strategy
Blue Ocean Strategy
In the Blue ocean strategy, a company is the only seller. It’s creating a monopoly in the market. More elaborately a market where a company is the only seller, no one is selling their product. Mono=single and poly=seller. For creating a blue ocean strategy we have to be innovators, early adopters, and early majorities in the market. This type of seller is the innovator. They have created a value-added futuristic must-needed product or service to disrupt the market. As well as solves the specific unique problem. Several key things will help them to do that
Technology
If we want to create a blue ocean then technology will be the key part. R&D, developers, etc if create something new that no one has then we can create a blue ocean. In this case, the technology should be futuristic and in the coming years or days, people will need that. Sometimes a fixed market gonna need that technology. Jio is the greatest example of introducing new technology for disrupting the market.
Disruptive Business model
Selling products, and giving services are not enough. We have to improve ourselves. We have to solve customers’ problems, more elaborately we have to take care of our clients or customers. The customer-centric business model will cover everything for a certain period to execute the strategy. Meanwhile, a business model helps a company to disrupt a market to fix customers to use their product and services.
Idea and Execution
Business always runs upon execution. Ideas sometimes are not great, as well as not unique but if we can execute that idea at great speed then that could create a blue ocean. In this case, the adoption curve could help to evaluate the proper position. Furthermore, execution delay could affect sales and quick improvement is needed. If the idea is great then it depends upon execution at the proper time with the proper strategy.
Market analysis
Response of the customers for improvement and response of the market is needed to create our market. SWOT and PESTEL framework analysis could help with fast execution. For existing products and services market analysis could give a futuristic solution to create a blue ocean by creating a market gap. As well as an innovation which will be needed, we could get to know. Additionally, for these reasons, we always have built the analytics team strong and have to analyze data every time. As well as non-existing data too.
Red Ocean Strategy
In the Red ocean strategy, we are not the only seller. There are a few other sellers too. It’s not creating a monopoly in the market. Furthermore, we have to fight for creating our market. More elaborately a market where there are few or many sellers, many people are selling the same products. Olygo=single and poly=seller. In the red ocean strategy, we have to be late majorities and laggards in the market. In this way, the business will not go properly if our products don’t have any specific customer-oriented value. Similarly, if we have several products then because of this reason brand loyalty will get hurt and this hard-hit may hit the other products or services.
Blue Ocean in the Red Ocean strategy
Above mentioned points in the blue ocean strategy some techniques help to create a market gap to sell a company’s products or use their services. In this case, in a whole bunch of sellers, a company has a unique strategy to sell its products and services. In this case, according to the adoption curve, they are early adopters or early majorities. They generally give customers a unique value through technology or a specific part. Additionally, an improved futuristic product and services which a company has made rather than the others. In this case, that company’s market share would be huge, shortly dominating.
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