September 8, 2006
Dilip M. Sarwate Ph.D.
16
A Comparison
nRed ocean
strategy
nCompete in existing market space
nBeat the competition
nExploit existing demand
nMake the value/cost tradeoff
nAlign the whole system of a company’s activities with its strategic choice of differentiation or low cost
nBlue ocean
strategy
nCreate uncontested market space
nMake competition irrelevant
nCreate new demand
nBreak value/cost trade off
nAlign the whole system of a company’s activities in pursuit of
both differentiation and low
cost