Contrasting Blue Ocean and Red Ocean Strategies PPT

This PPT slide, part of the 79-slide Strategic Planning: Process, Key Frameworks, and Tools PowerPoint presentation, presents a comparative analysis of 2 strategic approaches: Blue Ocean Strategy and Red Ocean Strategy. The left side outlines the characteristics of Red Ocean Strategy, which focuses on competing within existing market spaces. Key points include the necessity to beat competition, exploit existing demand, and make trade-offs between value and cost. This approach emphasizes a strategic choice between differentiation or low cost, suggesting a zero-sum game where one company's gain is another's loss.

On the right, Blue Ocean Strategy is depicted as a transformative approach that seeks to create uncontested market spaces. It aims to make competition irrelevant by capturing new demand and breaking the traditional value/cost trade-off. The concept of "Value Innovation" is central here, indicating that companies can pursue both differentiation and low cost simultaneously. This strategy encourages organizations to rethink their market positioning and explore innovative avenues that can lead to new customer segments.

The slide also includes a note that under a Blue Ocean Strategy, a company should aim to identify and exploit opportunities in untapped markets, thereby rendering existing competitors irrelevant at least in the initial stages. This approach can lead to sustainable growth and a stronger market position over time.

Overall, the slide effectively contrasts 2 strategic paradigms, highlighting the potential for innovation and market creation inherent in the Blue Ocean approach while acknowledging the traditional competitive dynamics of the Red Ocean. This insight is crucial for executives considering strategic shifts in their organizations.

This slide is part of the Strategic Planning: Process, Key Frameworks, and Tools PowerPoint presentation.

MBB/Big 4 style presentation that provides a holistic approach for undertaking strategic planning. While covering the traditional strategic planning approach, the document touches on adaptations that may be used in an unpredictable environment.

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