Inevitably this means a price war – and blood everywhere, hence ‘Red’ Ocean. Customer demand remains the same but the number of suppliers continues to increase, thus encouraging fierce competitive practices to ensure that they get as much of the market out at sea, and also when they get back to port. They’re all fighting after the same fish.Īs more trawlers enter the Red Ocean, the harder it gets for them to be commercially viable, since the ocean does not get any bigger and the potential catch is shared out more. They are sailing in a ‘Red Ocean’, contending against each other for a greater share of the ocean space and fishing catch. Setting out from port, there are many trawlers that are in competition with each other. Imagine a company as a fishing trawler at sea. Chan Kim and Renée Mauborgne called Blue Ocean Strategy, a metaphor for companies creating uncontested market space. What sparked my interest is a concept developed several years ago by W. When I see a company starting to do something that is innovative, I take notice and investigate, and try to leverage insights into my own client work. I’ve always had an interest in business strategy and business models, I like thinking about why some strategies work and why others don’t.
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