Global Journal of Management and Business Research, A: Administration and Management, Volume 23 Issue 9

Literature Review Red Ocean Strategy Saurav Kumar Author: Senior Faculty, Corporate Secretaryship Department, K. B Womens College, Hazaribag, Jharkhand. e-mail: saurav1980kumar@gmail.com Abstract- The term ocean strategy as introduced by the authors Renee Mauborgne & W. Chan Kim of the very famous research paper as well as book published Blue ocean strategy [1], where the term ocean means market and the strategy in reference of being blue focuses on creating a very new segment which is yet to be developed as a full fledge market and termed the other industrial strategies to be as red ocean strategies. Excessive exploitation of existing demands by making a better offer to customers with a view to beat competition is termed as red ocean strategy [1]. The authors mentioned that there are six common managerial beliefs as how to overcome competition in the business which they referred where false interpretations and named as red ocean traps. The article investigates the existence of red ocean strategy. Keywords: red ocean strategy, red ocean traps, blue ocean strategy, competitive strategy. I. I ntroduction he authors Mauborgne & Kim [1] identified and published blue ocean strategy a totally unique and newer strategy which was found to be adopted by some of the businesses to make their ways through the existing competition in their respective markets. They found that these companies where on to make or develop their own markets rather emphasizing on projects to compete in the existing market which therefore existed as a competitive advantage for them as the newer self developed markets would abide by the competitive rules and regulations as implicated by themselves. The authors put in examples of National Youth Orchestra of Iraq making a successful cost reduction shift by dropping down their traditional hiring of guest conductors and soloists and European repertoire, and taking in fresh local talents from various Iraqi ethnic and religious groups. The French Groupe SEB was found to be another proven successful shift as their Acti-Fry who could make low cholesterol more healthier French fries with less oil consumption which transformed the market for French fry makers and now developed as packaged baked foods and oil free snacks market example Bingo baked chips [2]. Another example was mention as Tuzak room escape games witnessed in the entertainment industry [8]. In the book blue ocean strategy they mentioned three modules pertaining shift to blue ocean; T Global Journal of Management and Business Research ( A ) XXIII Issue IX Version I Year 2023 57 © 2023 Global Journals 1. Mindset: Stretching mental limitations to witness true position of opportunities. 2. Tools: Use of proper and practical machinery to well ordered implication of blue ocean thinking into commercially viable products. 3. Human-Ness: Successful shifts depicted behavioural change as motivation to own and execute the process [3]. Blue ocean strategy Five Step Process; 1. Selecting the correct place to launch and build the correct Blue Ocean team for the initiative. 2. Thorough and well research about the present market situation. 3. Locating and identifying limitations in present market, discovering a new market-ocean for non- customers. 4. Organizing and building market limitations and developing replacing the opportunities with blue ocean. 5. Choosing the appropriate Blue Ocean move, conducting expeditious market tests, finalizing, and launching the shift [3]. Adapting this process makes the organization capable of relocating themselves from the boundaries of battling within the existing industry (“settlers”) to make a shift towards sizeable value improvement (“migrators”) and finally towards creating new value for humans who are non-customers (the “pioneers” of marketing-creating innovation)[3]. The authors [1] [8], also mentioned the avoidance of mindsets and strategies adopted by different companies with a view to get through the competition in the existing market comprising of same or similar industries as competitors which they termed as red ocean traps and red ocean strategy. The article investigates the existence of red ocean strategy. II. R ed O cean T raps [4] Very perfectly brought into sight and noticed by a number of researchers that humans who secure managerial positions in business organizations follow a similar and repetitive temperament to deal with the events at competition in their respective industrial markets. The authors [4], encountered in their research existence of six common presumptions depicting managers temperaments towards market competition that heavily impacted their final decisions [5]. These were termed by the authors [4] as red ocean traps.