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Should companies exclusively use Blue Ocean Strategy?

Both “Blue Ocean Strategy” and “Red Ocean Strategy” have their virtues. The use of these fundamentally different strategies should be decided upon depending on the situation in which the company finds itself.

If a company has established a profitable business model within a new market exhibiting strong growth, the recommended course of action would be to exploit this market using classic “Red Ocean Strategy”. However, if a company finds itself in a saturated market with fierce competition and low margins, it would be advisable to open up new markets using Blue Ocean Strategy.

In practice it is all too often the case that markets are a very deep red and companies nonetheless – partly because they do not know any better – concentrate exclusively on these markets and the competitors within it.