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Red Ocean Strategy
In the red ocean (Head-To-Head competition
area),
differentiation
costs because firms
compete with the same
best-practice principle. Here, the strategic choices for firms are to pursue
either differentiation or low cost.
The focus is on rivals within an industry,
competitive
position within a strategic group; better
serving the buyer group, maximizing the
value of product or service offerings within the bounds of its industry,
and adapting to external trends as they occur.
Blue Ocean Strategy
Blue Ocean Strategy is about
revolutionary value innovation.
It helps you
create customers and
stand out from the competition.
Value
innovation is created in the region where a company’s actions favorably
affect both its cost structure and its
value proposition to buyers.
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