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IQBAL ABUBAKAR SAHIB has given better answer.
Red Ocean Strategy is a competition-based strategy that assumes that companies operate within a market where the conditions are given and hence their primary strategy should be how to create leverages to compete among each other for market share. The market "game" is then by definition a zero-sum game by which the gains of one company are equal to the losses of othet(s).
Blue Ocean Strategy on the other hand argues that although competition is needed, companies should also focus resources in developing/exploring new demand and markets (the Blue Ocean). Think of it like this: instead of "dividing the pie" (the base asumption of the Red Ocean Strategy), the focus of Blue Ocean Strategy is to increase the pie and as a leader in that discovery take full bennefit of first mover advantage.
NIVE ANSWERS ALREADY HERE BY,,, mr.iqbal abubakar and mr. akbar
Realy Mr. mohammad iqbal give us the compleate answer
Red ocean:
1. Being number one in Market.
2. looking to inside.
Blue Ocean: The purpose is to generate the value
1. Company looks to become unique by differentiation
2. company looks to market to meet customer's needs
Innovation, creativity, exploration and adventure !!
This may also refect in R&D and market research, corporate development and culturel opneness
The main defining characteristics of the Blue Ocean strategy are:
• Create uncontested market space.
• Make the competition irrelevant.
• Create and capture new demand.
• Break the value/cost trade-off.
• Align the whole system of a company’s activities in pursuit of differentiation and low cost.
The main defining characteristics of the Red Ocean strategy are:
• Compete in existing market space.
• Beat the competition.
• Exploit existing demand.
• Make the value/cost trade-off.
• Align the whole system of a company’s activities with its strategic choice of differentiation or low cost.
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