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  • Writer's pictureRavikiran Papthimar

Strategy for Entering a Red Ocean Market

Red ocean are all the industries in existence today. It’s a known market space, where industry boundaries are defined and companies try to outperform their rivals to grab a greater share of the existing market. Cutthroat competition turns the ocean bloody red. Hence, the term ‘Red’ ocean.


Blue Ocean denote all the industries not in existence today. It’s an unknown market space, unexplored and untainted by competition. Like the actual ‘blue’ ocean, it is vast, deep and powerful –in terms of opportunity and profitable growth.


It’s imperative that all markets will turn to Red ocean at some point. When that happens to survive some of below strategies will help.

  1. Be Different: New product features may be enough to differentiate the product, and enter a world free from competition, even within a competitive industry. As far as possible define your differentiation or explore a specific niche within the mature industry

  2. Target Demographics: You can also target a different demographic, or capitalize on consumer preferences that aren’t being met by the leading competitors. Focus on the demography what you are comfortable with

  3. Price Points: If all your competitors are selling something around the same price, you could easily capitalize on their existing audience by offering the product at a cheaper price.

  4. Geographic Location: You could also feasibly find more opportunities in a different geographic area. If there’s a specific business, product, or service that’s popular in one area of the country, you could bring it to a location that’s unfamiliar with it.

  5. Peripheral Services: It’s also possible to stand apart from the competition by offering services that aren’t available from mainstream competitors.

  6. Increased visibility: Being different immediately helps you stand out. Capitalizing on what makes you different from the major players in a mature industry is a strategy certain to attract attention. This will aide you in your marketing and advertising efforts.

  7. Leveraging Untapped Channels: There are invariably marketing and advertising strategies that your main competitors aren’t currently using.

  8. Piggy back on existing brand value: As long as you aren’t lying about your competitors, you can mention them directly in your marketing and advertising campaigns, as a way to capitalize on the brand value they’ve already established.

  9. Competitor Reduction: If you are following all the above steps, you are already charting a path of your own which instantly reduces the number and ferocity of competitors you’ll face.

As is normally the case, timing is everything. How do you know when is the right time?

  1. Conflicting Beliefs: When there is a conflict inside red ocean, That’s an amazing opportunity to enter

  2. Too Many Product Options: And when you start to see tons of products competing on ‘better,’ that’s one way to know that the Red Ocean is ripe.

  3. Customer Innovation: If customers are starting to innovate on the products in the Red Ocean then its right time

  4. Rise of C-level influencers: When you see the rise of C- level influencers. The third tier influencers; that’s a big sign that you’re ready to branch out and take people from the Red Ocean to a new Blue Ocean

Strategy is about making choices, trade-offs; it's about deliberately choosing to be different. - Michael Porter
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