BLUE OCEAN STRATEGY

Strategy to compete on a very tight competition can lead to "a sea of blood" for companies that compete or fight it. This strategy disebur as Bloody or Red Ocean Strategy. W. Chan Kim and Renee Mauborgne claim that Red Ocean Strategy is no longer effective to create growth and profits in the future. They both propose a new strategy called the Blue Ocean Strategy. The difference between Red Ocean Strategy and Blue Ocean Strategy, among others, in responding to the market, competition, demand, values and strategy.

Red Ocean Strategy considers that it is competitive to compete in existing market space, while the Blue Ocean Strategy, considers that the competitive market is to create a space that no opponent. A very broad market bagaiakan "blue ocean". Because the vast market, companies can choose at will the market. Red Ocean Strategy using the concept to be able to grow and profit by beating competitors in the competition. Blue Ocean Strategy using the concept by making the competition does not exist. Because the competition does not exist, then firms compete only with himself without another company. The company would have won the competition without opponents. Red Ocean Strategy exploit existing demand for all-out. Blue Ocean Strategy to create and capture new demand. Red Ocean Strategy to achieve excellence create value, then the Blue Ocean Strategy to achieve excellence without the need to create value. Red Ocean Strategy together with the overall system of corporate activities by choosing a strategy of differentiation or overall cost leadership strategy (low cost strategy), while the Blue Ocean Strategy together with the overall system of the company's activities in implementing the strategy of differentiation and overall cost leadership strategy in concert same. Blue Ocean Strategy myangkut two aspects. First, how to find and develop the blue ocean. To find and develop the blue ocean, by launching a comprehensive new industry like eBay doing auctions on the Internet and perform more general by extending the boundaries created by idustri red ocean. Second, how to exploit and protect blue ocean.

Competition is to kill and kill others (red ocean strategy) should be replaced with no rivalry or competition without having to kill (blue ocean strategy), thus it becomes a beautiful business. "Therefore, we set (a law) for the Children of Israel, that he who kills one, not because the man (kill) another person, or for mischief in the land, then as if he had killed all mankind; . And if any one saved a life, it is as if he saved the life of all mankind ... .. (Al-Maidah verse 32).