Today, there is a marketing-sales field in which almost everyone is aware of it or not, and a developing competition focused on it. So, what are the developing strategies focused on this competition? What is the Blue Ocean and Red Ocean Strategy?
What is the Blue Ocean and Red Ocean Strategy?
In the industrial competition experienced, brands are developing various strategies in order to defeat the companies they compete with in the marketing fields. Blue and red ocean strategies were created for this purpose.
Blue Ocean Strategy; It was created by Chan Kim and Renee Mauborgne in 2005 and has made a serious impact especially in sales and marketing areas during its period.
The aim of the theory can be summarized as getting rid of the competitive environment in which sales-marketing fields are located and creating a new market place for itself.
The Red Ocean Strategy, on the other hand, enables top companies to stand out in the current competitive market environment.
In summary, while the blue ocean strategy builds a market from scratch, the red ocean strategy aims to dominate the existing market.
How did the blue ocean strategy come about?
When we look at today’s industrial fields in general, it is seen that the rules and boundaries were determined and accepted many years ago.
When we look at these accepted rules, we see that they serve the Red Ocean Theory, where there is a lot of competition and the profit and growth are reduced.
However, in marketing areas that have not yet been put into service, the effort to create demand and create a market suitable for the enterprise is a Blue Ocean strategy.
They are insensitive to the competition of brands and companies in the field of marketing-sales, because the rules of new markets are waiting to be determined.
What are the principles of the blue ocean strategy?
- It is the meaninglessness of competition in the market.
- Industrial limits not established
- Unspecified market areas exist
- The goal is to make a difference
- There are Reduce, Destroy and Create steps
- Moving away from competitors is available
- There is an increase in customer value
- It should be promoted in the form of introducing new ideas.
What is the reduce, create, destroy, increase strategy?
Reduce: Which rules in the company can be brought under the standards?
For example; such as not dealing with customer service according to the rules determined by retail markets, lowering the quality of products, ignoring the quality of personnel and putting the order and cleanliness in the store into the background.
Create: What are the benefits that the theory is not currently offering us?
For example; To ensure compliance with neighborhood concepts that customers find warm and retail sales at wholesale prices.
Destroy: Which of the accepted features can we forgo?
For example; such as removing the customer services provided by many retail markets, providing services to customers who shop above a certain amount, and removing discounts for cards used exclusively for them.
Raise: What can we put on the established and accepted rules?
For example; We can give an example of increasing the number of stores, opening branches in many parts of the country, and duplication of special products produced for the brand.
Considering this, the big retail brands that almost everyone is familiar with apply this rule a lot. As an example, we can give market chains that pioneered the rise of the following brands and the establishment of new areas.
What about the blue ocean strategy today?
Strategy concepts and methods have not just entered our lives, on the contrary, they appear as a feature of the past of the market areas and the period we are in.
Today, the blue ocean strategy is a profitable growth opportunity to be obtained. It creates its own demand by creating a need and adds innovation to the market. Being first will often make you dominate the market. Therefore, the blue ocean strategy is seen as a safer harbor than the red ocean strategy.
