Blue ocean strategy book summery Essay Example | Topics and Well Written Essays - 1000 words

Blue ocean strategy book summery - Essay Example Due to this environment, the struggle for success in the business world has become a battle among the competing interests (Kim & Mauborgne, 2013). Originally, the red ocean strategy was the most used mode of emerging top of the competition. However, the book talks about a new and different approach that is the blue ocean strategy. The terms blue ocean strategy is metaphorical to the authors’ envisioning and perception of the strategy in physical terms. The red ocean strategy as described in the book refers to the previously most popular way of beating the competition in the present environment. The red ocean strategy represents an environment where the rules of competition are defined and set. In addition, a well-known market space exists (Kim & Mauborgne, 2013). The only way for companies to beat the competition in the red ocean strategies is by fighting and struggling to outdo each other by taking actions that make their products more appealing to the market. The actions taken in the end gradually reduce the profit margin of the products. Methods of winning in the red ocean strategy involve approaches such as lowering the price of commodities to be cheaper than the ones in the market (Kim & Mauborgne, 2013). An action like this puts pressure on other competitors in the market to take a similar action culminating into a chain effect. Consequently, the price of the product or service lowers further and so does the profit margins o f the products or services. The author envisages the red ocean strategy as a gory competition to acquire a bigger market share of the product or service. The authors describe the main differences between the red ocean strategies and the blue ocean strategies. The approach towards market space whereby the red ocean strategies focuses on competing in existing market space while the blue ocean strategy relies on creating new uncontested market space which involves a great deal of innovation (Kim & Mauborgne,