Tuesday, November 10, 2009

Sibu In The Blue Ocean - Part 9

Tan Kee Hian then took the audience to go on board for a cruise of Red and Blue oceans.

Red Oceans simply refer to a known market space where competition is bloody. In short, competitors kill each other off for survival or gaining an advantage over market share.

Common characteristics of Red Ocean Approach are intense competition, low growth, shrinking profit pool, etc.

Tan Kee Hian quoted a few companies that broke free of Red Competition:

SOUTHWEST
Nintendo
Bloomberg
FRESHENING
swatch
BreadTalk
GE
CIRQUE DU SOLEII
Thailand Auto Components
Ford
DU PONT
LI & FUNG
SAMSUNG
iPod + iTunes
STARBUCKS COFFEE

In short, Red Ocean Approach is bad for corporations!

Photo: Liong

3 comments:

Daniel said...

iPod + iTunes = Apple Inc.
next up is the Apple tablet which will save the struggling print media

Anonymous said...

Not sure if they need to carry the name blue ocean. It may be just for their marketing purpose. Running a government cannot be like running a corporation. Government is for serving the people and corporation is focused on profit making.

Tony Hii said...

Blue Ocean Strategy Approach is applicable to both public and private sectors.