阿萨德法师噶尔供热

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Category: Business and Industry

Date Submitted: 06/13/2013 04:01 PM

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In this case, because of the globalization, the boundary of business have already been broken and the competition are more drastic in the existing scope of market, the author put forward a new point, get out of the existing market which is crowded and fierce competition(called Red Ocean), to create a new market space(called Blue Ocean).

1. The concept and characteristics of Blue Ocean and Red Ocean

Blue Ocean is the concept relative to the Red Ocean. Blue Ocean is representative of the space does not exist on current market, and the Red Ocean represents the existing industry and foregone market space. The feature of Blue Ocean is the new boundary of market, new requirements of market, unpredictable and profitable growth, without fashioned rules of competition; and Red Ocean have a fashioned boundary, widely accepted rules of competition, market is crowded, the space is limited.

2. Market competition requires organizations implement the Blue Ocean strategy

Actually, the history of industry development has already told us, the market is in motion, and the development of new industries and market is constantly happened, the number and types of current industry has been various and tend to sound. But that doesn't make enterprise meet with the current market space, because of the economic globalization and the removal of trade barriers, changes in supply and demand, make the market competition becomes more intense and the decrease of market share. Monopoly market has disappeared gradually; the gaps between different markets are more and more crowded. Hence, we need create new market boundaries. At this time, we use the Blue Ocean strategy; it’s quite different with the strategy we used in the Red Ocean.

3. The competitive strategy of the Red Ocean

Before the Blue Ocean strategy, Michael Porter have put forward the Porter’s 5 force model and the 3 basic competition strategy, which are the famous tool be used to organizations in the Red Ocean’s...