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Red, Blue and Purple Ocean Strategy

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Petra Koziotová

on 26 April 2014

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Transcript of Red, Blue and Purple Ocean Strategy

Red, Blue and Purple Ocean Strategies
Blue Ocean Strategy
Focusing on not existing markets or industries

Companies CREATE demand instead of COMPETING for it

Competition is irrelevant because players do not know the rules of the game that can be set over

Blue ocean is created from within a red ocean when a company alters the boundaries of an existing industry

Achieving differentiation and low cost

Purple Ocean Strategy
Red, Blue and Purple Ocean Strategies

Blue Ocean Strategy
Red Ocean Strategy
Current industry and a specific market

A mixture of both Red and Blue Strategy approaches

Companies are following those combinations of Red and Blue Strategy

Purple Ocean strategy advocates continuous innovation, numerous traditional enterprises (Samsung, Motorola, Nokia)

If markets become completely Red Ocean vendors will choose to exit due to fierce competition and low profits

Red Ocean Strategy
BA (Hons) Strategic and Change Management
Petra Koziotová
April 26. 2014
Borders are set and accepted by all players (companies)

To perform better at the market than other companies, to gain a greater share of the demand arising from consumers

After a certain amount of time the space available to firms gets crowded with the consequence of lowering prospective profits and in the end possible growth
Apple: "Better"
Samsung vs Apple
Purple Ocean Strategy
Ryanair Airline
Apple: The Earth Day
Red and Blue Ocean strategies will always coexist

Reality demands that companies understand the strategic logic of both types of oceans
Reference List
Gahir, B. and Cavagnetto, S. (no date) Shades of Purple Strategy. School of Business, Prague College.

Kim, W. C. and Mauborgne, R. (2004) Blue Ocean Strategy. Harvard Business Review, Boston.

Youtube (2014) Apple: Better. Available at: (Accessed: 24. April 2014)
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