Literature Review Red Ocean Strategy And Red Ocean Traps

Abstract: 

To be fortunate, companies must find strategies to always remain ahead of the competition. There is no easy way to beat your opponents. All markets have competition. Smarter businesses always try to mitigate the impact of competition in order to increase market share. Competition isn‟t always a bad news, as it may sometimes drive innovation, prompt companies to improve efficiency of the product items, improve product range or sometimes even compel operators to offer quality products. In the business world, competition is inescapable. Whether one is just starting out or are a seasoned pro, understanding the dynamics of competition is crucial for success. Competition may take all kinds of varied forms including actions such as companies with similar products or services require to adopt changes in technology and market trends. Ocean strategies are solutions to the problems relating to competition faced by the companies. The term ocean strategy as introduced by the authors Renee Mauborgne & W.Chan Kim of the very famous research paper as well as book published Blue ocean strategy, where the term ocean means market and the strategy in reference of being blue focuses on creating a very new segment which is yet to be developed as a full fledge market and termed the other industrial strategies to be as red ocean strategies. Excessive exploitation of existing demands by making a better offer to customers with a view to beat competition is termed as red ocean strategy. The authors mentioned that there are six common managerial beliefs as how to overcome competition in the business which they referred where false interpretations and named as red ocean traps. The article investigates the existence of red ocean strategy.

Keywords: Red Ocean Strategy, Red Ocean Traps, Blue Ocean Strategy, Competitive Strategy