The paper is based on the need to put aside destructive competition between companies and to be a winner in the future by expanding the horizons of the market and creating value through innovation. This paper differentiates two competitive situations common in any industry: blue oceans and red oceans. Red oceans represent all the industries that exist today, while blue symbolizes business ideas currently unknown. In the red oceans industry boundaries are well defined and accepted as they are. The more competitors there are, the chances of reduced profits and growth, the products are standardized to the maximum and competition becomes bloody. By contrast blue oceans are characterized by the creation of markets in areas that are not exploited at present, and that create opportunities for profitable growth and sustained long term (Kim, 2005, pp. 14).
Business strategies inc. proposes a strategic planning exercise for managers of small, medium and large businesses to support the business development and regardless of the life cycle in which it is located. Obviously, this reflection assesses the strengths and weaknesses of competing firms, the influence of trends and the expectations and requirements of the target audience to formulate recommendations for the company to distinguish itself in the market. In each of the mandates, we appreciated the pragmatism of our recommendations and, most importantly, the impact thereof on the financial performance of the company (Siegemund, 2008, pp. 44).
Red Ocean Strategy
Businesses, business or dreams of many people, mainly from the student and the student environment is focused on creating new businesses that have never been. Not only that, that no one has such a business did not create the people, whose knowledge may be at least an average level, and experience close to zero, while rich in hundreds of tons of positive energy trying to create new business models and systems. All this to create something that has not yet been, and exercise the right leadership and creating new market opportunities. Creating new markets is a strategy blue ocean, where there is no competition, is a leader and you can create your own rules. This is one of the ways of business. The power to create something new, innovative and generally anything other than it was before. Such a strategy is a strategy of dreamers, who dream of big billions. The Ocean Red is the traditional space, with well-defined products, known competitors and competition based on price, quality and service. Most companies operate in this type of space. Red Ocean, companies try to outdo the other to increase their PDM but the market is increasingly crowded and reducing prospects, products are becoming commonplace. Ocean Blue, the products are not yet well defined, competitors are not structured and the market is relatively unknown. It is in this strategic area that may create new demand extremely profitable. A Blue Ocean is born from a Red Ocean, pushing the boundaries of ...