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  • 30 Nov 2021

  • 30 Nov 2021

The Concept of Red Ocean and Blue Ocean

What are Red ocean strategies?

Red Ocean Strategy can be defined as a plan of action, which aims to make the product survive in a market that is full of competitors. It typically tends to focus on the current customers, which takes the attempt to improve the experience of the customers. It is present in the highly competitive market.

Any business in the scenario of high competition tries to keep its level at the top, to get associated with the profit. When any firm wants to reach the top peak, then it goes with the Red Ocean Strategy, to compete with the other business firms and get success. All the industries take attempts to satisfy the need of the consumers, and due to competition, it becomes risky for a startup to survive. The automobile industries are an example of Red Ocean strategies in India.

How does the Red Ocean Strategy work?

When the industry needs to get aligned with the Red Ocean Strategy for establishing its standard in the market, then it brings a product or service to find its roots in the competition, which ultimately would help it to build its demand in the market. It just needs to be unique with its services, for showing its status. This would also help the industry to attract the attention of a maximum number of audiences to its services. For example, Jio disrupted the whole business of Telecommunication when entered the competition. It showed its uniqueness to the world and established its roots with the success.

In other words, the goal of the Red Ocean Strategy wants the brand to outperform in the competition to maximize productivity and bring a good financial benefit to the business, by engaging the maximum number of customers to the brand.

Though there always goes a competition between the companies, the customers always remain at the core of any business. As always, any firm must occupy a place in the heart of the customers, which highlights the most powerful strategy to achieve progress in the market.



Competition, challenges, Red Ocean Strategy

As there is a rise in competition in the market, so it becomes mandatory to become exceptional in the eyes of its customers.

Any industry deals with providing the best products and services to satisfy the needs of the customers.

It helps the customers to know the real value and process behind the making of the product. They understand what kind of efforts are being taken by the industry before bringing the products to the market.

It helps in creating awareness about the product. It becomes necessary to become steady in the competition. The main aim of any industry is to generate its sales to acquire prosperity in hundredfold.

So it becomes necessary for the industry to promote its products directly to the target customers. It helps to increase the brand value and reputation of the product.

It utilizes different ways to promote the products in the market. But it seems to be a major challenge in the Red Ocean Strategy.


Sustainability, challenges, Red Ocean Strategy

All the industries provide different kinds of products to increase sales and build a reputation in the market.

Like when a company offers varieties of products, then the consumer sort out very few products out of it.

Many industries face difficulty in forecasting the future demand for products.

The main challenge arises when they do not get advanced tools that allow them to estimate how to fulfill the requirements of the clients by providing them with proper quality.

As a result, their products fail to meet consumer demand and face lower sales.

Red Ocean reflects the challenge to be sustainable in a market full of competition.

For satisfying all the needs of the customers, it should be available with all the needed resources.

For satisfying all the needs of the customers, it should be available with all the needed resources. Fulfillment of needs on time plays a major role in the market, which ultimately helps in improving customer service that leads in bringing more loyal customers, increases sales and productivity.


Growth, challenges, Red Ocean Strategy

Growth is one of the major challenges faced by many companies surviving in the Red Ocean.

It becomes expensive to distribute products to various regions, particularly for small businesses.

Unlike the big multinational corporations who establish their distribution channels, any industry requires to spend extra money to establish efficiency in distribution to different parts to increase the profits.

It becomes difficult for most companies to deal with new clients who live in different regions. Due to the Red Ocean Strategy, it becomes difficult for an industry to grow in the industry.

It needs to work on low margins to sell the products. For Example, if a person opens a clothes shop in the market, then to get the clothes sold, he needs to sell the products on low margins, with a good discount offer.

He would have to follow the low margin, though it results in less profit.

Blue Ocean Strategy

A Blue Ocean Strategy deals with creating a demand in the market which does not exist currently, rather than fighting over it with the other industries. An industry always keeps in mind that there must always be the potential of the market place which has not yet been explored. Most of the Blue Oceans get created from the Red Oceans by expanding the existing boundaries, and finding the right opportunity proves to be a successful Blue Ocean Strategy.


Less Risky

An industry always ensures to provide its customers happy with high quality to keep on increasing in the market. Good information is believed to improve decision-making, enhance efficiency, and provide a competitive edge.

Blue Ocean Strategy is associated with very less risk and more profit. After getting established in the competition, the industry does not need to go for marketing its products. It does not have to create new demand for promotion. The customers find the unique product and come to purchase it.

Future Clarity

Any company in the market has the best clarity about how to establish a business in terms of the Blue Ocean Strategy. This enables the company to better focus on the product value, like if it serves the customer in a better manner.

It clearly shows the brand promise that may give the buyer an idea of what to expect from the product or service of the industry. It generally pioneers the purpose of business later on making money. It also helps the consumers to influence a large audience.

By deliberately bringing one or more of these high-profile experts on the platform, a firm can innovatively increase the power of its brand and give rise to productivity, which depicts the clear picture of its future. It does not need to work on low margins.

Requires limited resources

Exceptional services can help to steal the heart of clients. Customer Satisfaction should always lie at the priority for any business regardless of which industry it belongs to. If it does not take care of its customers, then it could lose its identity in the market. For satisfying the customers, it should be available with all the needed resources. The benefit of the Blue Ocean Strategy is that it requires limited resources to reach a large number of customers. It leads to greater fulfillment of needs brings high levels of productivity to the business.

Fulfillment of needs on time plays a major role in the market. Improving customer service leads to more loyal customers, increases sales and productivity.

If a company has limited resources and follows the blue ocean strategy, it will never be able to do business again. With the red ocean strategy, there is a margin of safety. After all, the company operates in an already established market. In other words, organizations with limited resources should start with a red ocean strategy and then move on to a blue ocean plan once they have established themselves and are open to taking more risks.

Examples Of Blue Ocean Strategy


Netflix, Blue Ocean Strategy

Netflix media-streaming and the video-rental company was founded in 1997.

Netflix began offering an online subscription service through the Internet, and the subscribers chose movie and television titles from its Web site; the shows were then mailed to customers in the form of DVDs, along with prepaid return envelopes.

Netflix started offering subscribers the option to watch some of its movies and television shows directly to their homes through the Internet.

For most subscription plans, the streaming service was unlimited.

Instead of trying to compete with the popular giant solely on price or entertainment choices.

Netflix reinvented the market by creating an entirely new kind of online DVD rental service. It allows the customer to take benefit of it as long as they want, without any demand.

It has built up a continued demand in the market, and also created an upper demand to reach at the peak of success.


Uber, Blue Ocean Strategy

Fulfilment of needs on time plays a major role in increasing productivity.

Improving customer service leads to more loyal customers, increases sales and productivity.

Whenever any organization takes care of its customers and satisfies their needs, then that firm escalates its business to the highest peak and gets prosperity in hundredfold.

When productivity increases, it ultimately gives rise to a greater revenue system. The product always needs to be developed over time and consistently.

Uber founded in 2009, faced many challenges, such as limited payment options, and the absence of location trust, which resulted in a lack of customer trust.

Hence, Uber tried to create a new type of mobility service, which would bring trust to the mind of its customers.


Facebook, Blue Ocean Strategy

When Facebook started, it was at the forefront of its blue ocean, known as social networks. It became the largest social network in the world, with nearly three billion users as of 2021, and about half that number were using Facebook every day.

It is the well-known and the largest social media platform in the market, which is most relevant for marketing services, products, or brands.

It is a reliable choice of the audience, who want to market their products online and get an immediate response. This leads to an increase in sales of any small or big business.

This brings a wide range of customers together on a single platform. It offers the users as well as influencers a great opportunity to start their remote marketing. It also provides the best platform for entrepreneurs to target a wide range of customers by location, occupation, interests, and several other valuable data points.

It helps to build brand awareness, by increasing the reach of the products for the customers. It brings direct traffic to the website, through the posting of content, and gives the customers a more fruitful experience, also drives huge traffic to the page.

Though the prices of Facebook ads vary, considering the target audience as well as the budget set for the ads. With the name change, Meta can steer its product offerings into something new, and exciting.

[The images are being taken from the registered companies and belong to their respective owners only.]