Advantages and Disadvantages

Red Ocean & Blue Ocean Strategy Examples & Difference in 2023

Red Ocean Strategy and Blue Ocean Strategy Examples & Difference in 2023. Difference Between Blue ocean and Red ocean strategy. Examples of Red Ocean and Blue Ocean Strategy. Also, Blue Ocean Strategy Four Action Framework.

Red Ocean Strategy

Red ocean strategy refers to the traditional marketing strategy to compete with the competitors. It is demonstrated when many companies compete to achieve a competitive advantage in the existing market. These companies contest in the same marketplace to beat their opponents. Red ocean strategy influences the company to provide better service to buyers. It mainly focuses on the existing customers and buyers rather than creating new customers. So, they provide better services and products to attract customers.

Characteristics of Red Ocean Strategy

Firstly, the red ocean strategy focuses on competing in the existing market. So, multiple companies compete with each other to achieve competitive advantages. The marketing team pursues both product cost and differentiation to beat other companies. Additionally, the company intended to provide better service to buyers—finally, they pay more attention to the current customers instead of looking for new clients.

For example, Malaysia and Air Asia Airlines follow the red ocean strategy to beat their competitors.

Red Ocean Strategy Examples

Air Asia is a renowned airline company in Malaysia. It always tries to compete with other airline companies in Malaysia, for example, Firefly, Batik Air, and Malaysia Airlines, to achieve competitive advantages. Air Asia offers low prices on domestic and international flights to beat the competitors. On the other hand, Malaysia Airlines also reduce the price to beat Air Asia. So, they fight each other in the same marketplace. It is a real-life example 0f the Blue Ocean Strategy.

Suppose we infer these giant companies with sharks and the marketplace with the ocean. So, imagine what will happen if all these sharks fight with each other. The ocean gets bloody due to the fierce fight of sharks.

Advantages of Red Ocean Strategy

Firstly, the market has already existed, so no need to create a new marketplace.

Secondly, the services and products have good demand by the customers. Many customers want the products so the new companies can utilize the existing consumers.

Additionally, the company can quickly recruit skilled employees with deep experience in the sector.

Finally, the new companies can get ideas on how to improve the business from their competitors.

Disadvantages of the Red Ocean Strategy

Firstly, competitors are experienced in this market, so it is difficult to beat them.

Secondly, the company needs to focus on cost and differentiation, which is difficult for a new business.

Blue Ocean Strategy

Blue ocean strategy refers to the uncontested marketing policy focusing more on innovation to reinvent the business than the head-to-head competition. W. Chan Kim and Renée Mauborgne introduced the Blue ocean strategy in 2005. It is a simultaneous process of opening a new business market and creating new demand; therefore, competition is irrelevant.

Blue Ocean Strategy Examples

There are several examples of the blue ocean strategy worldwide. Many industries had accepted it to get benefits, such as Netflix, Canon, iTunes, Cemex, Philips, NetJets, Curves, JCDecaux, Quicken, Polo Ralph Lauren, etc. iTunes solved the problem recording industries when it started the business. Before launching iTunes, consumers download a song illegally from the internet platform. ITunes’s blues ocean strategy created a new way of legally selling music, where consumers and artists mutually benefited. They managed to make a new category of music selling through digital music platforms for listeners. Still, it is dominating the marketplace of music platforms for years.

Netflix’s organizational change is the most appropriate example of the Blue Ocean strategy. Netflix changed its business plan to create an uncontested new market. It is one of the most successful companies that accept the blue ocean strategy to achieve competitive advantages.

For example, Netflix, Canon, and iTunes follow the blue ocean strategy to achieve the competitive goal.

Blue and Red Ocean Strategy Examples

For example, you put some sharks in a pond. Now, they are fighting each other. The sharks are trying to kill others. A few hours later, you can see the water has been red for the shark’s blood. We can infer this pond to the red ocean where many companies are competing with each other.

On the other hand, you put a shark in a separate pond. There is no other shark that can fight, so the water is blue and fresh. We can infer it to the blue ocean strategy where only one company controls the marketplace.

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Red Ocean vs. Blue Ocean Strategy

Red Ocean Strategy	Blue Ocean Strategy
The contest is in the same market.	Create an uncontested new market.
Many Companies compete with each other in the existing market.	One Company dominates the new Market.
Beats competitors.	Competitors are irrelevant.
The company pursues both cost and differentiation.	The company chooses between cost and differentiation.
Make the value-cost trade-off.	Break the value-cost trade-off.
Capture new demand.	Exploit existing demand.
Focus on rivals within its industry.	Focus across the alternative industry.
Intend to provide better service to buyers.	Redefine the buyer group.
Focus on current customers.	Focus on new customers.
The market is already established.	Need to make the new market.
For example, Ryanair and Air Asia Airlines.	For example, Netflix, Canon, and iTunes.

Difference Between Red Ocean and Blue Ocean Strategy

Red Ocean Strategy and Blue Ocean Strategy- Difference Between Red and Blue Ocean Strategy.

1. Focus on Current Customers vs. Focus on New Customers

Most industries focus on attracting existing customers to sell more products and services in the red ocean strategy. Thus, they focus on the current customer to make benefit by selling products and services.

In contrast, in the blue ocean strategy, the industry tries to change the business pattern to yield something new for the customers. The company also broadens the business area to develop new products or services; therefore, customers are irrelevant here. Thus, this strategy allows the company to focus on business patterns rather than customers.

2. Compete in Existing Markets vs. Create New Markets

From the red ocean strategy perspective, the industry is doing business with customers where some industries gain more clients, and some other sectors lose clients. They are doing business with the same customers and competing with each other to get more customers. The company will earn more money if it can bring more customers under its umbrella.

The blue ocean strategy never suggests the company compete because it makes a new uncontested marketplace. The product and service are unique; therefore, no company will come to compete with you. So, this strategy creates an uncontested market to serve its customers.

3. Beat the Competitor vs. Make the Competitor Irrelevant

The competition must exist in the company’s marketplace that follows the red ocean strategy. They compete to sell more products and services to increase profit margins. So, they always intend to beat the competitors through marketing policy, product quality, and services.

The blue ocean strategy makes the competition irrelevant because they need not compete with other industries to sell products and services. It makes a new marketplace for the industry.

Key Points of Blue Ocean Strategy

The eight critical points of the Blue ocean strategy are as follows;

It’s grounded in data.
It pursues differentiation and low cost.
Blue ocean creates an uncontested market space.
It empowers you through tools and frameworks.
Blue Ocean’s strategy provides a step-by-step process.
It maximizes opportunity while minimizing risks.
Blue ocean also builds execution into strategy.
It shows you how to create a win-win outcome.

Blue Ocean Strategy Four Action Framework

Chan Kim and Renée Mauborgne developed the four-action framework to destroy the trade-off between low cost and differentiation and rebuild an industry’s strategic logic. The four Actions Template determines whether the investment money is used correctly to maximize consumer gain and minimize consumer pain. It also assesses the gains with this template and the pains that matter for your product. It is the best way to get the most benefit with the lowest price within the total product market.

Four Action Framework Examples

**Figure 3:** Blue Ocean Strategy Four Action Framework

How to Use Four Action Templates

Eliminate

Firstly, you have to identify the factors of the industry that need to be eliminated because of defectiveness. Find out the elements where you give significant investment and effort but get very little output. These factors can also be made more contributions in the past but are now useless, so you need to eliminate them because of becoming obsolete.

Reduce

Secondly, you need to identify factors that are unnecessary for the industry and cannot correctly benefit the industry. These factors are well below the industry’s standard. For example, the higher cost of manufacturing can reduce the product.

Raise

These significant factors need to be increased to fulfill the industries well above standards. For example, the company needs to rebuild the features to exceed the customer’s challenges.

Create

These are the new features that the company never provided. To create these new features, you must investigate the customer’s desire to fulfill them. The industry can also create new products or offer innovative consumer services. It will help the company to create a new marketplace distinguished from the competition.

Conclusion

In short, the Red ocean strategy refers to competing for the existing marketplace, whereas the blue ocean strategy denotes making a new uncontested marketplace. Based on the discussion, it is safe to say that the blue ocean is a better way to bring fewer risks, more success, and increased profits. In addition, the four action templates appear as the best solution to identify the industry’s investment is properly or not. Hence, the blue ocean strategy and the four action framework have become innovative business innovations.

Social Media Advantages and Disadvantages Essay

Social Media Advantages and Disadvantages Essay PDF. Advantages and Disadvantages of Social Media Essay IELTS. Benefits of Social Media Essay. Disadvantages of Social Media Essay.

Social Media Advantages and Disadvantages Essay

The essay on social media advantages and disadvantages describes social media platforms’ positive and adverse impacts. The most significant parts of an ideal essay are the introduction, body, and conclusion, and the additional elements are thesis statements, transitional verbs, and examples.

The essay on the advantages and disadvantages of social media includes the introduction, thesis statement, advantages, disadvantages, and conclusion. Nowadays, social media have become a widespread phenomenon. Therefore, the advantages and disadvantages of social media essays have become a crucial topics for students, educators, and academicians. Many students focus on social media essays to obtain excellent results in the IELTS exam. The school, college, and university lecturers also set this topic for the assignment and exam questions. The author demonstrates examples of social media’s advantages and disadvantages essay.

Social Media Advantages and Disadvantages Essay

Introduction

Social media are the most significant blessing of technology in the modern era. Social media are mainly Internet-based tools and applications that people use for communicating, entertaining, and sharing information. The most common social media platforms are Facebook, TikTok, WhatsApp, Viber, Instagram, WeChat, Pinterest, Linked In, VK, etc. The total number of social media users is around 3.0 billion worldwide. Facebook has become one of the most famous social media, gaining 2.96 billion monthly active users. It becomes a double-edged sword due to its positive and negative impact on society. The author discusses the advantages and disadvantages of social media platforms in the community.

Advantages of Social Media

The advantages of social media are maintaining communication, sharing knowledge, and enhancing business.

Firstly, social media ease the communication system that contributes to building relationships. Nowadays, more than 90 percent of teenagers are using smartphones, and in the meantime, 45 percent of them surf the internet every day. For example, students utilize social media networking sites to conduct virtual meetings and classes. So, social networking sites benefit people in maintaining communication globally.

Additionally, Social media have become the most convenient tool for imparting and sharing knowledge. People can easily perceive how difficult educational life would be without using social networking platforms. Every student acknowledges that Google has become the best lecturer for asking questions and seeking knowledge from the Google search engine. For example, educators adopt Google meet and webinar meeting platforms such as Facebook, WhatsApp, LinkedIn, Zoom meeting, Google Meet, etc. So, social media are the best grace of technologies from the perspective of sharing knowledge and expertise.

Furthermore, social media have a tremendous positive impact on the company from the viewpoint of marketing policy. Social media help organizations communicate with potential customers virtually. For example, the organization utilizes its official social media pages for corporate branding, product branding, social media marketing, paid marketing, website traffic enhancement, promotion, etc. In sum, selling products and services online has been more straightforward for the blessing of social media.

People benefit from several viewpoints on social media, such as education, communication, workplace, marketing, entertainment, etc.

Disadvantages of Social Media

On the other hand, the most critical disadvantages of social media are using them for cyberbullying, hacking, and addiction.

Firstly, teenagers utilize social media platforms to bully others, also known as cyberbullying. Cyberbullying refers to harassing someone by sharing personal information on social networking sites. A study shows that around 50% of teenagers were bullied in Bangladesh until 2016. In 2016, an American teenager named Megan Taylor Meier died by suicide of cyberbullying. For example, most teenagers get bullied on Instagram, Facebook, Snapchat, and YouTube.

Hacking is another negative consequence of using social media in society. Many people preserve their personal information on social networking sites, including photos, ID cards, and passports. Hackers can hack this personal information and share them on Facebook, Instagram, Twitter, etc. Sometimes, they demand money from victims committing to not disclosing their private photos. After all, it traumatizes the victim mentally; hence, it is another negative consequence of social media platforms.

Moreover, social media’s most alarming negative impact on society is addiction. A statistic revealed that around 220 million people are now addicted to social media directly or indirectly. For example, many teenagers play games on social media instead of doing their daily tasks properly.

Conclusions

In short, Social media positively and negatively impacts individuals and companies. People benefit from social media to maintain communication, share knowledge, and enhance business. In contrast, some crimes happen due to social media, such as cyberbullying and hacking. Many teenagers are addicted to social media, which bars them from maintaining a healthy life. However, people can make social media a blessing tool by preventing negative societal impacts.

Advantages of Social Media Essay

Social media advantages essay discusses the benefits of social media sites in human life. It also includes the introduction, body, and conclusion. An example of a social media essay has been outlined.

Introduction

Have you ever wondered why half the 7.7 billion people worldwide use social media platforms? Social media refers to the internet-based networking system that facilitates human communication through computers, smartphones, and tablets. Around 3.8 billion people use social media, yet Facebook achieved about 2.74 billion monthly users worldwide in 2021. Today I would like to talk to you about the positive role of social media in society. Nevertheless, social media have both positive and negative impacts on society. Regardless of the critics, the advantages of social media are practicing citizen journalism, maintaining emergency communication, and conducting a virtual education system.

Advantages of Social Media

Firstly, citizen journalism plays a significant role in creating social awareness and shaping public opinion. Citizen journalism means collecting, generating, and publishing information on social networking sites like Facebook, Instagram, WhatsApp, etc. Social media allow citizen journalists to spread information quickly compared to traditional media. A study shows that around 45% of Americans consume news and information from social media platforms. For example, citizen journalists play a crucial role in the covid-19 pandemic by sharing the coronavirus death toll on Facebook daily.

Secondly, social media platforms have become the most convenient networking sites for emergency communication. The disaster management authority utilizes social media pages to conduct agency-to-community communication. Social media can spread any news quickly among many people in the community. For example, in 2020, WHO, UN, UNESCO, and UNICEF disseminated updated information regarding the COVID-19 pandemic on social media pages. Mass media utilize social media sites to promote programs and content through media convergence. Social media sites are undoubtedly effective tools for quick communication in emergency periods.

Finally, educators, students, and academicians currently utilize social networking sites to conduct virtual classes. During the COVID-19 pandemic, many educational institutes conducted and regulated online courses through virtual meeting minutes, including Google Meet, Zoom meetings, and WhatsApp. As a result, students organize virtual meetings to complete group discussions and submit online meeting minutes. A study shows that social media enhance students’ communication skills; therefore, they perform better than average students who are inactive on social networking platforms. So, it is another crucial benefit of social media in conducting a virtual education system.

Conclusion

In sum, social media are a blessing invention of technology in the 21st century, contributing significantly to information and communication technology (ICT). The three significant advantages of social media are practicing citizen journalism on social media, maintaining emergency communication, and conducting a virtual education system. Based on these positive social media roles, it is safe to say that social media benefit people immensely.

Disadvantages of Social Media Essay

The social media disadvantages essay discusses the adverse consequences of social media sites in human life. The article on social media’s disadvantages includes the introduction, thesis statement, body, and conclusion.

Introduction

Social media have brought a significant change in the communication sector. Social media, also known as the new media, have become indispensable to the modern lifestyle. According to the statistic report, more than 800 social media platforms globally. Nowadays, people can not imagine a day without using social networking sites like Facebook, Instagram, WhatsApp, and TikTok. However, it has both positive and adverse impacts on society. Apart from the positive consequences, social media’s most typical adverse effects on society are spreading fake news, negative reviews on businesses, and addictions.

Firstly, People opt-in to social media sites to spread fake and fabricated information for its availability. Many citizen journalists utilize these sites to disseminate misleading political issues. For example, Twitter banned President Donald Trump’s account due to posting misleading information.

Secondly, social media can destroy the business due to negative reviews from customers on social media. It also creates high customer expectations and a reduction in employee productivity. A study shows a negative social media review can diminish hundreds of positive comments.

Finally, Netizens are incredibly keen on social media and spend most of their time here instead of traditional media. People are highly addicted to social media and experience physical and mental illnesses.

Conclusion

Social media have both positive and negative consequences on society. Nobody can deny the blessing of social media to make our civil life more accessible from communication with each other beyond the country’s boundaries. The adverse consequences of social media are spreading fake news, negative reviews on businesses, and addictions. The government and policymakers should come up with a solution to the problem.

Essay on Advantages and Disadvantages of Social Media

The essay on the advantages and disadvantages of social media outlines how to write a body paragraph of an essay with APA citation. The essay’s thesis statement and body paragraph on social media’s advantages and disadvantages have been illustrated here.

Thesis Statement

Social media help us communicate with each other, but it is also beneficial for education & marketing purposes.

Body Paragraphs

First of all, social media have a tremendous positive impact on the educational sector, and it assists students in nourishing their knowledge with the teaching aids that are available online. Faizi, Afia, and Chiheb (2013) mentioned that students who are actively involved in social media could earn more knowledge easily in a better way. They also stated that social media had become a great platform that allows students to work in a group on projects and also enhance their knowledge capacity. In addition, social media allows everyone to access vast knowledge through various educational websites, knowledge-sharing portals, and online classes.

Greenhow and Lewin (2016) proposed that social media tools have several educational advantages for students and teachers. They also said that it provides opportunities for further learning for people from all walks of life who can access the internet. In essence, it is clear that social media positively impacts the educational sector.

Secondly, social media are the biggest platforms for different brands and organizations to use for marketing. Many recognized brands use social media to promote their products and service to their targeted audiences. Barefoot and Szabo (2010) explain that social media marketing can be defined as using different platforms to promote an organization and its products to the targeted audience. Furthermore, celebrities worldwide use social media to connect with their fans and followers, and they also used to do publicity work. Wright (2015) claimed that celebrities also use social media channels to keep a good reputation and online presence. Additionally, the main intention behind this is to increase the number of fans and followers. In short, social media play a significant role in the corporate and personal branding sectors.

References:

Barefoot, D., & Szabo, J. (2009). Friends with benefits: A social media marketing handbook. No Starch Press.

Faizi, R., El Afia, A., & Chiheb, R. (2013). Exploring the potential benefits of using social media in education. International Journal of Engineering Pedagogy (iJEP), 3(4), 50-53.

Greenhow, C., & Lewin, C. (2016). Social media and education: Reconceptualizing the boundaries of formal and informal learning. Learning, media, and technology, 41(1), 6-30.

Wright, K. (2015). Social Media and Celebrities: The Benefits of a Social Media Presence.