Introduction

Companies need strategies to execute their path to success and excel in their businesses.The Ocean Strategy is one of those. It consists of the Red Ocean, Blue Ocean, Green Ocean, and White Ocean representing various ways for businesses to compete and innovate. Knowing these strategies helps businesses find opportunities, understand their competition, and create effective plans for growth. This article explains each ocean strategy with simple explanations and practical examples for everyone to understand.

 

Origin Of The Ocean Strategy

 

Red Ocean and Blue Ocean: These terms were popularised by W. Chan Kim and Renée Mauborgne in their book "Blue Ocean Strategy." They provide a clear framework for understanding market competition and innovation.

 

 

 

 

Green Ocean and White Ocean: While these terms are used to describe different market dynamics, they are not as widely recognised as Red Ocean and Blue Ocean. They are often used to convey specific concepts or strategies, but they don't have a standardised definition or framework.

It's important to note that while "Green Ocean" and "White Ocean" may not be formally recognised, they can still be valuable concepts for understanding market dynamics and developing effective strategies.

 

What Is The Red Ocean Strategy

 

Definition: 

The Red Ocean represents a market that is already well-defined and crowded with competitors. It is characterised by fierce competition, low profitability, and limited growth opportunities. In a Red Ocean, companies compete by offering similar products or services at lower prices or by differentiating their offerings through incremental improvements. The "red" can be interpreted as a symbolism of the bloodied waters of intense competition.

 

Characteristics:

• High Competition: Numerous businesses competing for the same customers.
• Market Saturation: Existing demand is limited, leading to fierce battles for market share.
• Cost Reduction Focus & Efficiency: Companies often focus on reducing costs and improving efficiencies to compete.

 

 

 

 

 

Example from Smartphone Industry:

• Description: Major businesses like Apple, Samsung, and Huawei compete intensely in this crowded space. Each company tries to outdo the others with incremental improvements in technology, features, and marketing.
• Competition: Companies in this market focus on differentiating their products with enhanced specifications, better cameras, faster processors, and more advanced features.
• Challenges: The competition is fierce, and market share is often won by marginal improvements in technology or branding. Profit margins can be thin because companies are often forced to compete on price, which can lead to reduced profitability.

 

What Is The Blue Ocean Strategy

 

Definition:

The Blue Ocean represents a new market space that is uncontested, thereby making the competition irrelevant. Rather than competing within an existing industry, businesses create new demand and innovate in ways that make the competition obsolete. This approach focuses on differentiation and value innovation. The "blue" in Blue Ocean can be interpreted as a symbolism of the calmness and peace of operating in a market space free from intense competition, contrasting with the "red" in Red Ocean.

 

Characteristics:

• Uncontested Market Space: Focuses on creating new demand rather than competing in a competitive market.
• Innovation and Differentiation: Businesses innovate to offer unique value propositions.
• Increased Profitability: Often leads to higher profit margins due to reduced competition.

 

 

 

 

Example from Tesla Electric Vehicles:

• Description: Tesla, under Elon Musk's leadership, entered the automotive industry with a focus on electric vehicles (EVs) when traditional automakers primarily produced gasoline-powered cars. Tesla didn't just compete on the same parameters as existing car manufacturers but introduced a new market for high-performance electric vehicles.
• Innovation: Tesla's innovation includes long-range batteries, high-performance acceleration, and a network of supercharging stations. The company also offers a unique driving experience with autopilot features and a sleek, modern design.
• Impact: By creating a new category of high-end electric vehicles and pushing the boundaries of automotive technology, Tesla has established itself as a leader in a new market segment, differentiating itself from traditional automakers and driving the growth of the electric vehicle market.

 

*For Tesla here, there’s a mix of Blue and Green Oceans. This overlap happens often between oceans and will be explained further in the next section.*

 

What Is The Green Ocean Strategy

 

Definition:

While not explicitly defined by Kim and Mauborgne, the Green Ocean strategy focuses on environmental sustainability and responsibility within existing markets. Companies that adopt this strategy aim to reduce their ecological footprint, address environmental concerns, and appeal to environmentally conscious consumers. The 'green' can be interpreted as a symbolism of efforts to align business practices with sustainability.

 

 

Characteristics:

• Sustainability Focus: Emphasises reducing environmental impact and promoting eco-friendly practices.
• Consumer Appeal: Attracts customers who prioritise environmental responsibility.
• Innovation in Green Technologies: Involves developing sustainable products and processes.

 

 

 

 

Example from The Body Shop:

• Description: The Body Shop is a global skincare and cosmetics company known for its commitment to ethical sourcing and environmental sustainability. The company emphasises cruelty-free products and environmentally friendly practices.
• Innovation: The Body Shop pioneered the use of Fair Trade* ingredients and implemented a strong commitment to reducing plastic waste by introducing recyclable and refillable packaging. 
• Impact: By focusing on ethical sourcing and sustainable packaging, The Body Shop has created a distinct market segment for eco-friendly and cruelty-free beauty products. Their commitment to sustainability has attracted customers who are concerned about environmental and ethical issues, setting them apart from conventional beauty brands.

 

* Fair Trade refers to a social movement and market-based approach that aims to help producers in developing countries achieve better trading conditions and promote sustainability. It ensures that the people who produce goods, such as coffee, cocoa, tea, and other commodities, are paid fair prices for their work, work in safe conditions, and have access to better opportunities for economic development.

 

What Is The White Ocean Strategy

 

Definition:

The White Ocean strategy is indeed often described as a combination of Blue Ocean and Green Ocean strategies but White Ocean strategy is more focused on creating a completely new market space that incorporates both innovation and sustainability. The White Ocean concept is not formally defined in academic literature but is used to describe businesses that merge market innovation with sustainability to their business cores. This combination implies creating new, uncontested market spaces (like Blue Ocean) while also integrating environmental and social responsibility (like Green Ocean). The "white" can be interpreted as a symbolism of purity, balance, and the ethical alignment of business practices with both innovation and sustainability.

 

 

Characteristics:

• Innovative and Sustainable: Merges the creation of new markets with a commitment to sustainability.
• Ethical and Social Responsibility: Emphasises both market differentiation and responsible practices.
• Long-Term Impact: Aims for lasting impact by addressing market needs and environmental concerns simultaneously.

 

 

 

 

Example from Beyond Meat:

 

Description: 

 

Beyond Meat is a food company that has revolutionised the plant-based protein industry by creating meat alternatives that closely mimic the taste, texture, and appearance of animal meat. Their products cater not only to vegetarians and vegans but also to meat-eaters looking for healthier and more sustainable options.

 

Innovation:

• Advanced Food Technology: Beyond Meat uses innovative processes to extract proteins from plants such as peas, mung beans, and rice, restructuring them to replicate the sensory experience of eating animal meat.
• Broad Appeal: By focusing on taste and texture, they've made plant-based meat appealing to a wider audience, creating a new category in the food industry.

 

Sustainability:

• Environmental Impact Reduction: Their products require significantly less water, land, and energy to produce compared to traditional meat, and they generate fewer greenhouse gas emissions.
• Health Benefits: Offering cholesterol-free and lower saturated fat alternatives contributes to healthier dietary options for consumers.

 

Impact:

• Market Creation: Beyond Meat has established a new market space within the food industry, leading to increased competition and innovation in plant-based proteins.
• Industry Influence: They've prompted traditional meat companies to invest in or develop their own plant-based lines, pushing the entire industry toward more sustainable practices.
• Consumer Behavior Change: By providing accessible and enjoyable alternatives, they've contributed to a shift in consumer eating habits toward more sustainable diets.

 

Overlap of Ocean Strategies

 

Red Ocean and Blue Ocean Overlap:

• Description: Companies operating in a Red Ocean environment may adopt Blue Ocean strategies to break away from intense competition with a new feature or product variation that differentiates it from competitors and creates a new market opportunity.
• Example: Initially, Apple competed in the crowded mobile phone market (Red Ocean). However, by launching the iPhone, Apple created a new category of smartphones (Blue Ocean), offering unique features that set it apart from existing products.

 

Blue Ocean and Green Ocean Overlap:

• Description: Businesses pursuing Blue Ocean strategies may incorporate Green Ocean principles to create innovative solutions that also address environmental concerns. This overlap allows companies to differentiate themselves while appealing to eco-conscious consumers.
• Example: While Tesla created a new market space with its electric vehicles (Blue Ocean), it also prioritised sustainability and environmental impact (Green Ocean). The company's commitment to reducing carbon emissions and promoting renewable energy is integral to its business model.

 

*Blue Ocean and Green Ocean Overlap can be confusing with White Ocean. This complexity will be cleared in the next section.*

 

Green Ocean and White Ocean Overlap:

• Description: In the overlap between Green Ocean and White Ocean strategies, businesses address environmental concerns while also creating new, innovative market spaces that integrate sustainability into their core model. This approach sets them apart by combining both elements in a meaningful and unique way.
• Example: Jim has developed healthy snacks produced with Fair Trade ingredients from local farms and suppliers that practise sustainable agriculture and with a creative touch—edible packaging. This packaging is designed to be easily cleaned and eaten along with the snack. It replaces traditional plastic or paper packaging, reducing waste, and adds complementary flavours to enhance the overall taste experience of the snacks. 

 

Red Ocean and White Ocean Overlap:

• Description: In a highly competitive market (Red Ocean), companies may pursue White Ocean strategies to redefine market boundaries and create new opportunities. This approach helps them stand out from competitors and address new customer needs.
• Example:  Jim’s cafe operates in a crowded market with intense competition, representing the Red Ocean environment. He donates a portion of sales to local children’s foundations. This reflects the White Ocean’s emphasis on positive social impact. By offering free cooking classes to children from foundations, Jim’s cafe aligns with the White Ocean’s focus on creating societal value and addressing new customer needs (in this case, educational opportunities for disadvantaged children).

 

Blue Ocean and Green Ocean Overlap VS White Ocean

• Blue Ocean and Green Ocean Overlap: When a business innovates in a new market space and also focuses on sustainability, it shows an overlap between Blue Ocean and Green Ocean strategies. This means the business is creating something new while also being environmentally conscious, but it's not necessarily creating a completely new market that blends both elements into its core business. For example: 

Jim’s lantern is a new product that combines lighting with bug-zapping and uses solar energy, making it eco-friendly. This blends new product innovation (Blue Ocean) with sustainability (Green Ocean). However, it doesn’t create an entirely new market like White Ocean but rather improves upon existing garden products with innovative and sustainable features.

 

* Blue Ocean and Green Ocean Overlap: Shows how businesses can innovate while being environmentally conscious but remains within existing market boundaries.*

 

• White Ocean Strategy: A White Ocean strategy involves creating a completely new market space by deeply integrating both innovation and sustainability into the core of the business model. This approach doesn’t just innovate or focus on sustainability within an existing market but sets up a new market that combines both elements seamlessly. For example: 

Jim has established a school that integrates advanced technology and eco-friendly practices throughout its operations. This includes using cutting-edge tech for teaching, employing sustainable building materials, and offering eco-friendly stationery. This creates a new kind of educational environment that merges innovation with sustainability in a way that hasn’t been done before. Therefore, Jim’s school is a White Ocean example because it introduces a whole new way of education, combining both elements in a new, uncontested market space.

 

* White Ocean Strategy: Represents a deeper integration of both innovation and sustainability to create a completely new, uncontested market space.*

 

Conclusion

Understanding the different ocean strategies—Red Ocean, Blue Ocean, Green Ocean, and White Ocean—is essential for businesses aiming to have a guide in competitive and innovation driven markets. Each strategy offers unique approaches to market presence, competition, and sustainability:

• Red Ocean Strategy: Competitors in saturated markets.
• Blue Ocean Strategy: Creates new, uncontested market spaces.
• Green Ocean Strategy: Focuses on sustainability within existing markets.
• White Ocean Strategy: Integrates innovation and sustainability to create new market spaces.

Identifying the strategies that best fit a company's goals will enable it to effectively position itself in the market, stand out from the competition, and meet emerging consumer needs. Understanding these strategic directions will help businesses make informed decisions and help them achieve their goals.

 

No Matter Which Ocean Strategy You Use, Event Marketing Can Enhance Your Results.

 

PICSO is a one-stop event marketing specialist for all types of events, including conferences, trade shows, product launches, and more. We offer personalised planning supporting your specific business needs and goals, helping you stand out and succeed in any market.

• Red Ocean: Our creative and innovative event marketing strategies can help you differentiate your brand and compete effectively in crowded markets.
• Blue Ocean: We can help you expand into new markets by aligning your event design with your strengths and sharing your story in targeted locations.
• Green Ocean: Our eco-friendly planning and materials can showcase your commitment to sustainability and attract environmentally conscious customers.
• White Ocean: We can help you drive awareness for social impact through local engagement and sourcing local products.

 

At PICSO, we're not just your partner; we're your trusted professional advisor. We're committed to helping you plan effective events that support your business goals.

 

Together, let's craft a solution that sets your business apart. Contact PICSO today and make your next project of events, exhibitions, or interior designs truly remarkable!

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Line / Kakao: bumin123 

Email: bmkim89@picsothailand.com 

 

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