How can you compare blue ocean and red ocean strategies for innovation?

A red ocean strategy operates on the premise of competing within established markets with clearly defined boundaries, rules, known customers, and competitors. In this strategy, the aim is to increase market share by providing superior or more cost-effective products/services compared to rivals, or by establishing a distinctive positioning. Nonetheless, this approach entails encountering fierce competition, pricing battles, and declining profit margins. Effectiveness in a red ocean strategy arises when possessing a robust competitive edge or successfully capitalizing on a specific market niche or opportunity.

Simplify your value proposition and leverage user-generated content within a red ocean strategy is astute. A notable case study, Chic-fil-A, exemplifies this by featuring user-generated and staff profiles on their social platforms while maintaining a simpler menu offering. It is important not just to compete aggressively in a red ocean but strategically.

A blue ocean strategy revolves around the concept of forging new markets, characterized by undefined boundaries and rules, and where customers and competitors remain unfamiliar. Within a blue ocean, the goal is to generate fresh value and stimulate demand by introducing something radically distinct from existing market offerings or by addressing unexplored problems. This approach results in encountering reduced competition, the potential for higher pricing, and broader profit margins. Effectiveness in a blue ocean strategy hinges on possessing a clear vision, a distinctive value proposition, and a robust capability for execution.

As a creative and futurist, my natural inclination towards the blue ocean is evident. Leveraging design thinking strategies such as the double diamond model and staying attuned to emerging technologies through tools like the Gartner hype curve are pivotal. These methodologies not only provide insights into unexplored territories but also enable the formulation of creative outcomes and strategies, aligning seamlessly with the essence of a blue ocean strategy.

The strategy canvas visually contrasts business offerings against competitors' on key factors impacting customer value. Red Ocean focuses on existing markets and competition, while Blue Ocean seeks untapped markets, offering novel value propositions. Value curves depict the level of value provided, guiding strategic decisions.

Depending on your objectives and circumstances, blue ocean and red ocean strategies can be applied uniquely. For instance, a red ocean strategy might fortify your market standing or enhance operational efficiency. It can also serve to validate ideas before initiating a blue ocean approach. Conversely, a blue ocean strategy can unlock new growth avenues, challenge conventions, and harness existing capabilities in innovative ways.

If we're looking at a 'purple' ocean. I think first it begins from having a lean and agile organisation structure. Firstly, we have to streamline existing offerings and operations for efficiency and cost-effectiveness and innovate within this streamlined framework to introduce novel features or services that set you apart. I would leverage emerging technology like generative AI or blockchain to engage with by audience using user-generated content and suggestion to co-create and produce data and sentiment driven solutions. Transforming to a purple organisation that values proximity to the target audience is the sure-fire way to combine strategies.

I love all the other analogies, I think looking at Green Field, Brown Field, and Gray Field strategies are additional approaches that can complement red and blue ocean strategies. Maybe like Purple Ocean, it's time to define your own strategy and market landscape.