Red Ocean vs. Blue Ocean Strategy
Market concentration analyses at it's finest
These two strategies are becoming more used by startups, however, their understanding may not be so clear. In many cases, SMEs (Small to Medium-size enterprises)and even MNEs (Multinational Enterprises) use the analyses that I will provide you to see if they want to enter a certain market based on what type of ocean the market presents to be.
Based on the type of Ocean the market presents itself to be you can asses the two strategies in order to see if it is optimal to enter the market or not.
Let’s first take a look at the two oceans and the strategies they come with.
Red Ocean
In a red ocean, we can expect a more concentrated market or a very concentrated market actually that is usually found in small but popular niches. Such an Ocean presents itself to be quite of high risk for any sort of business but, especially for a startup.
If you are planning to expand or integrate into a new market that is more orientated towards a red ocean because of its high concentration you need to try and create a disturbance…
