Red Ocean and Blue Ocean Activities

The red ocean of “cut-throat” competition versus the opportunities in the blue ocean.

Obtaining a competitive advantage through differentiation -(Dr Claude H. A. Simpson).

Firms that survive the fierce red ocean of “cut-throat” competition should use selective strategies to uncover extensive opportunities available in the blue ocean. The distinctive activities of a firm establish a direct link to its capability of obtaining a competitive advantage. In order to achieve success, businesses must find ways to stand out from their competitors in today's competitive marketplace. Product differentiation occurs when companies offer unique products or services to their customers. Organizations create differentiation with innovative features combined with superior product quality, exceptional design, and excellent customer service. Companies develop a competitive edge by offering products or services at prices that undercut those of their rivals.

Businesses maintain their competitive advantage through technological updates paired with powerful branding and efficient distribution networks. Personalized products or services enable businesses to distinguish themselves from competitors through their unique market positioning. Companies that partner with others can access important resources and market opportunities beyond their individual reach. A company achieves competitive advantages through its skilled and motivated employees. By implementing these unique activities, companies can set themselves apart from rivals to achieve a competitive edge in the market.