What is the blue ocean strategy and what is the red sea strategy?

Blue Ocean and Red Sea are two corresponding personal capital. "Blue Ocean" refers to the unknown and undeveloped market space, that is, as the saying goes, "People who eat crabs are the first to explore the blue ocean field." "Red Sea" refers to the known and highly competitive market. In the Red Sea, the industrial boundaries are clear and the competition rules of the game are well known.

Give a simple example:

Ten brands make computers, each of which is trying to figure out how to surpass its competitors in similar products. This is the "Red Sea". At this time, a company has made the most powerful motherboard on the market and sold its own motherboard to nine other companies. This is the "blue ocean".

The core of "blue ocean" is "innovation". How to use innovation ability to create new curves and realize low cost and differentiation of self-production is the process of realizing "blue ocean".

"Blue Ocean" and "Red Sea" vividly illustrate the sharp contrast between two very avant-garde economic management concepts, "blue" and "red". The blue ocean, because of fierce competition, fish kill each other and bleed a lot, and become a red ocean. "Blue Ocean" is like a clear stream spewing out of a pool of blood. It is peaceful, quiet, energetic and fascinating. At one time, there were countless fans, including giants such as Samsung, Sony and Microsoft.

Extended data:

At the annual meeting of Harvard Business Review in 1997, W. Chan Kim and Mauborgne put forward the "blue ocean theory" for the first time, and then they spent 78 years analyzing and demonstrating it. Blue Ocean Strategy was officially published in February 2005.

The blue ocean and the red sea are not unrelated, and the blue ocean is often born between the red seas.

For example, when Ford introduced Model T in 1908, Ford created the blue ocean of the automobile industry at the loss of producing workshop-style cars. For example, Starbucks has created a blue ocean in the coffee retail industry, and Chrysler and Wal-Mart have also created their own blue ocean in the fierce competition in the Red Sea. The blue ocean is not necessarily far away from the Red Sea. Everyone can regroup and open up a new blue ocean based on their own industries, and there is no need to sell iron in the pot before starting a new stove.

References:

Baidu Encyclopedia: Blue Sea and Red Sea