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Why Operate in Low Margin, Ultra-Competitive Businesses…
…when there are so many
High Margin, High Growth Opportunities?
But how to identify such attractive opportunities?
Red Ocean Strategy
- Compete in existing market space
- Beat the competition
- Exploit existing demand
- Make the value-cost trade-off
- Align the whole system of a firm’s activities with
it’s strategic choice of differentiation or low cost
Blue Ocean Strategy
- Create uncontested market space
- Make the competition irrelevant
- Create and capture new demand
- Break the value-cost trade-off
- Align the whole system of a firm’s activities
in pursuit of differentiation and low cost