Blue ocean strategy is probably a peep into how you can break your competitor’s resistance, without fighting it out. The strategy is to come up with an innovation by saving on the costs and lifting up the buyer’s value. However, the cost savings and low margins may be off- set by large volumes of sales or service.
Well, let us see the difference between the Red Ocean and the Blue Ocean concepts.
| Sl.No | Red Ocean | Blue Ocean |
|---|---|---|
| 1 | Compete in existing market place | Creates an uncontested market place |
| 2 | Tries and beats the competition | Make the competition irrelevant |
| 3 | Exploit existing demand | Create and capture new demand |
| 4 | Make value cost-trade off | Breaks the value cost- trade off |
| 5 | Fighting to win | Winning without fighting |
The blue ocean strategy works on a 4 action frame work.
1. Eliminate
The factors that the industry takes for granted and should be eliminated.
2. Reduce
The factors that should be reduced well below the industry standard ( ex. Cost)
3. Raise
The factors which should be raised well above the industry standard.
4. Create
The factors that should be created that the industry has never offered.
Let us put this action frame to the game of cricket and the evolution of the IPL cricket.
1. Eliminate
The usual pattern of cricket.
No result game and tournaments.
2. Reduce
The investment of time by spectators.
Boredom, the element of patience.
Fatigue for the players and viewers
3. Raise
Pace of the game.
Enthusiasm.
Certainty with respect to results.
Participation from film world.
4. Create
Loyalty to regions and cities.
Centre stage for unsung talents
Entertainment (comparable to movie and magic shows)
The introduction of IPL cricket has pulled more audience and created more interest amongst people leading to greater revenue through cricket.
The IPL is a blue ocean strategy.
