Blue Ocean Strategy Strategy for Winning without Fighting

The traditional strategies based competition (Red Ocean Strategy) assumes that industries structural conditions are given and that firms are compelled to compete among themselves. For their sustainability in the marketplace, practitioners of red ocean strategy focal point is on developing advantages over the competition, usually by analyzing what competitors do and striving to do in a better way. In this, cost and value are observed as trade-offs and a firm chooses a distinctive cost or differentiation position. Blue Ocean Strategy (BOS) in contrast, is based on the view that there is no existence of market boundaries and industry configuration but can be reconstructed by the actions and beliefs of players. To them, superfluous demand is out there, largely untapped. The crux of the problem is how to create it. This, in turn, requires a budge of attention from supply to demand, from a focus on competing to a focus on value innovations, i.e, the creation of innovative value to give way to new demand. This is achieved through the simultaneous pursuit of differentiation and low-cost.