Do you have experience in Blue and Red Oceans?
What is the Blue Ocean?
First of all, according to the theory, there is a blue ocean because there is also its antagonist, the red ocean. And both of them will be used to explain the marketing universe:
- Red Ocean: it’s the already known market, with all the current companies. In this environment, the industry borders are established, know and accepted by all the participating agents. This is the space with fierce competition. Because all the companies compete with each other for the same market, each taking its own share. In this scenario, as new entrants are showing up, every participant is having its share – and, so, its profits – reduced. The term red ocean derives, precisely, from this “bloody war” scenario.
- Blue Ocean: it’s the opposite of the red ocean. In this ocean, the market in unknown. There is no competition, there is no war. Because the companies don’t exist in this environment yet. The demand will be created by the new business, with no competitors, in an abundant space, plenty of growth and profit. It’s, therefore, a vast, deep and unexplored ocean.
Do you use these strategies in your business?