Red,Blue,Purple Ocean Strategy

INTRODUCTION
■ W. Chan Kim (born 1951 in south Korean)
■ 1970s he started his academic career eventually
becoming Professor
■ 1992 he moved to France, where he became Professor
of Strategy and Management 
■ co-director of the INSEAD Blue Ocean Strategy Institute
in Fontainebleau, France. He is known as co-author of
the 2005 book Blue Ocean Strategy
■ 2008 he was awarded the Nobels Colloquia Prize for
Leadership on Business and Economic Thinking. He was
ranked second in the Thinkers50 of the most influential
management thinkers alive.
■ Renée Mauborgne (born 1963)
■ is an American economist and business theorist, Professors
of Strategy and Management at INSEAD, and co-director of
the INSEAD Blue Ocean Strategy Institute in Fontainebleau,
France.
■ She is known as co-author of the 2005 book Blue Ocean
Strategy.
■ She is listed among the Forbes.com list of Most Influential
Management Gurus since around 2009.
Blue Ocean Strategy:
■ A blue ocean is a strategy where the boundaries of existing markets are
redefined, and new uncontested markets are created.
■ focused more on creating new markets based on upcoming trends or
demands of consumers.
■ At its core, there is value innovation, for which uncontested markets are
created, where competition is made irrelevant. 
■ “The key goals of the blue ocean strategy are finding the right marketing
opportunity and making the competition irrelevant.”
■ Thus, companies following a blue ocean strategy offer much more value at
a lower cost for the end customers.
Characteristics of Blue Ocean Market

■ Mainly composed of large firms

■ low level of competition
■ medium size consumer base (depending on the market)
■ Populated by more expensive or luxuries items
Example
iPod
Red Ocean Strategies:

■ A red ocean strategy involves competing in industries that are currently in

existence.
■ “The key goals of the red ocean strategy are to beat the competition and exploit
existing demand.”
■ Align the whole system of a firm’s activities with its strategic choice of
differentiation or low cost.
■ A red ocean is a place where competition is the norm. Players in a red ocean are
all fighting for the same contested space.
■ By nature, a red ocean, as it is a very crowded space, it is also a place where
profit margins are narrow, and products and services are commoditized. 
Characteristics of a Red Ocean Market

■ High level of competition

■ Aggressive marketing (e.g. competitive pricing)
■ Existing technological resources
■ the exploitation of existing demand
■ Mainly small to medium size businesses
 Example
Soft Drink Industry
Purple Ocean Strategies:

■ The Purple Ocean Strategy is the new terminology that describes the “Red ocean” and “
Blue Ocean” mixing together.
■ In simple terms it is about the Red Ocean that is related to highly competitive markets
mixing with Blue Ocean that stands for new untouched market which is mostly new
business categories.
Characteristics of a Purple Ocean
Market
■ Complete in existing market, but stand out
■ Differentiate yourself from the competition
■ Exploit current customer base to reduce attrition, drive loyalty and promote word of
mouth.
■ Align the whole system of a company’s activities in pursuit of differentiation through
added value
Thank you
Pranav Jagtap B-75
Deepika Kupekar B-86
Pooja Mishra B-89
Yash Rathod B-100
Pranjali Sorkhade B-113