Red Ocean & Blue Ocean Strategy: Definition, Goals, Concepts, Types and Benefits - Warna Dunia
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Red Ocean & Blue Ocean Strategy: Definition, Goals, Concepts, Types and Benefits

Red Ocean Strategy & Blue Ocean Strategy

For some people who are familiar with Red Ocean Strategy, they will definitely be confused because this term is rarely heard, but for entrepreneurs who have been in the business world for a long time, this term is no longer strange to hear.

For some business people, they definitely apply the Red Ocean Strategy to develop a special technique or marketing strategy so they can attract consumer interest and compete with competitors.

Red Ocean Strategy has a high risk because in its marketing the company and competitors will clash with each other's strategies and compete fiercely.

But behind all that, if Red Ocean is implemented with the right strategy, it will also have a good impact on the company, apart from the company being able to excel in the market, the products it sells will also be more widely known, and get many consumers from various interested groups from all walks of life.

The following is the definition, concept and types of market ocean strategy.

Understanding Red Ocean Stategy

According to Kim.W.C., and Mauborgne.R., in 2014 they said that the Red Ocean Strategy is a strategy in the business world so that companies can be superior in competition with competitors so that they can gain a wider market share.

Red Ocean Strategy Goals

In today's business world, most companies certainly want to compete with competitors with various strategies and methods of their respective companies, either by making their products of higher quality and economic value in the eyes of consumers, or by means of promotions so that their products are easily recognized in the community, as well as using other methods. by collaborating with distributors to market their products so that they have quite wide coverage.

Basically, the Red Ocean strategy has a mission to compete and demonstrate business strategy competition with competitors that are already reliable or widely known, so that it will be easy for new companies to target the market, and make their products more widely known and attract consumer interest.

However, it is important to remember that competition is natural in the business world, but each company also needs to pay attention to the ethics of competing in business so as not to give rise to cases of unfair competition or monopoly, this clearly violates the regulations stipulated in Law No. 5 of 1999 concerning the prohibition of monopolistic practices. and unfair competition and is directly supervised by the Government Institution Business Competition Supervisory Commission (KPPU).

Types of Markets Markets

According to Kim.W.C., and Mauborgne.R., which was introduced to the public in 2005, they said that in the business world (there are two types of markets), namely red ocean and blue ocean strategy.

Red Ocean Strategy Concept

Red Ocean Market is a structured market strategy and has good and good rules. Apart from that, Red Ocean Strategy also has rules that can be more easily understood by all its members. The techniques it applies are also quite effective, namely by trying to compete with successful competitors in order to get the peak of success on the market.

Blue Ocean Strategy Concept

If previously discussed, Red Ocean Strategy has the concept of competing with a market in which there are already superior competitors.

However, this is different from the Blue Ocean Strategy, this Blue Ocean Strategy combines activities within the company in pursuing profits but using lower costs, as well as looking for market opportunities that do not yet exist or are new so that there is no competition with similar products when they are marketed.

Benefits & Conclusion

These two strategies are indeed very different. If we talk about Red Ocean Market, it will combine all systems in a company to choose between differentiation and low costs, while Blue Ocean Market is more focused on differentiation and low costs. The next difference is that Red Ocean is more concerned with competing in market competition. which is much stricter, whereas Blue Ocen Strategy is more concerned with creating new target markets that have no competition.

So this Blue Ocean Strategy is suitable for starting a new business or start-up business, besides that the company will continue to innovate and create different products so as not to compete, but the bad impact is that this Blue Ocean Strategy has high risks because to run a new business you must have the best product. so that consumers can easily recognize it later.

Meanwhile, the Red Ocean Strategy company will directly compete with its competitors in the market by competing with each other, with a mission to make the product better, more useful and have economic value in the eyes of consumers, so that the product sells well and beats competitors.

Both strategies are equally suitable for use in marketing, each having their own advantages and disadvantages.

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