Blue Ocean Strategy: A Necessity Prescription for Companies

2. Competitive Strategy In Compare Of Blue Ocean Strategy

During the past 25 years most of emphasizes were on competitive strategy and some part of this portion is because the main organizational strategies were very dependence on their roots which were protection strategy. In army science, strategy means to face and defense to a competitor which has a specific area and position, so the main current strategies also are based on this definition. The market would consider as a specific area where the firms are trying to achieve more customer to increase their returns and this action has nothing unless one firms would get a high return and other would face in disasters situation that face them to vanish from the market (Burke, Van Stel et al., 2009).

Although competitive aspects are very important for the firms but keeping more attention to this issue will make the firms become far away another attributes which is creating a new market that there is no competitor in that and makes competition meaningless, this is exact meaning of Blue Ocean strategy (Buisson and Silberzahn, 2010). Assume that global market is divided by two parts: Blue Ocean and Red Ocean. Red ocean defines the whole businesses that exist and they are known area of market. In the red ocean all the boundaries and limitations are obvious and also the play law which is using in the market is very clear. In red ocean firms try to perform the best to achieve much more return for their firms due to this fact that red ocean market is very crowded being lucrative is very hard, to make story short this competitive environment has made it so bloody and gain profit is very hard for firm to achieve (Parvinen, Aspara et al., 2011). To add more, in red ocean strategy there are some parameters that play significant role for existing in business like cost, competition and price, and competition should be suitable and good enough for expanding the companies’ services and products.