These two theories are widely used for Small scales enterprises, and multinational enterprises, these also find use in startups also.
Basically these strategies concerned about the level to which the concerned market is concentrated or still.
In this we considered those markets which are highly concentrated and there is heavy competition going on inside that market also the products are generally of same types and differ very less among them.
and in order to enter in this market one need to do something to disrupt this stillness and this could be done by heavy advertisements and brand recognization.
- Market is highly concentrated.
- The competition is very high.
- Generally existing technology or existing resources are used.
- Brand recognisation and heavy marketing is required.
In this the product is new to the market and as a result the market is not still or concentrated and the competition is not much and the product get the necessary recognisation if it is upto the expectation of the customer.
So the level of marketing required in this is not that heavy as compared to Red Ocean.
for example The introduction of new gaming set up in the market that can provide you next level of gaming experience which is not previously possible.
- Market is not much concentrated.
- Not much marketing is required.
- Very low competition.
For startup, both Blue Ocean and Red Ocean is not much of concern as it totally depend upon the idea that you have and how well you execute it.
Still, the chances of growing in Red Ocean is more if you be able to make your brand more available to the customer and how good you advertise your product, if your product, say for example, is of FMCG category then Red ocean Strategy will be applied.
And if it is of some, for example, electronics or tech based that provide something which was not available earlier then Blue Ocean strategy will be applied.