Have you ever wondered what exactly the Blue Ocean Strategy is? Would you like to learn about a strategy that helps you land your dream job? These questions and all other queries pertaining to blue ocean strategy will be resolved with this segment. The next video will take you on a journey of transition from the Red Ocean Strategy to the Blue Ocean Strategy and help you improve your chances of landing your dream job.
So, in the video, you learnt that each industry has the following two types of market: the red ocean and the blue ocean. Let’s take a look at the basic fundamentals of the red ocean and the blue ocean first.
Red Ocean Market
The red ocean is characterised by limited demand, and it represents a market with a multitude of competitors who compete fiercely. Therefore, entry to this market is extremely difficult. The only way to progress in such a market is to exploit the existing demand in order to directly compete with the pre-existing competitors in the marketplace.
Let’s take a look at the blue ocean next.
Blue Ocean Market
The blue ocean is characterised by a completely uncontested marketplace, which has no competitors and instead of fighting for limited demand, demand is created in this strategy. It essentially involves creating a market for the first time. So, it provides far more opportunities than a red ocean, even if you are a late entrant. As it is rightly said, “Blue oceans are right next to you in every industry.”
The example of iTunes cited by Vikram in the video clearly illustrates how it excelled in the music industry by creating a market of its own for the first time. The company used the immense potential of the market to grow into the big name that it is today.
Note down the key pointers in the example above and try to understand how the company analysed the new marketplace and the existing issues to develop unlimited demand, which is the crux of the Blue Ocean Strategy.
Here is an interesting read on the same example.
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