Red ocean vs blue ocean strategy

ASOS is a private limited company registered in the United Kingdom and mainly deals in fashion and designing for both males and females. It was founded in 2000 by Icelandic entrepreneur and CEO Nick Robertson. According to the company website, ASOS Plc is headquartered in London, with stores across the United Kingdom and internationally.

The company’s strategy is based on what it calls “the red ocean” (vs “the blue ocean”), which refers to the idea that there are two types of oceans: the red ocean, where companies struggle to survive and compete, and the blue ocean, where there are few companies but they all dominate their respective markets. ASOS believes that it has found the blue ocean by building an e-commerce platform that allows customers to buy clothes directly from the company’s website. ASOS claims that this strategy has allowed it to grow rapidly and become one of the UK’s leading fashion retailers.

Keep Reading

Watch Our Latest Videos:

ASOS has been criticized for its low standards of workmanship, with some workers claiming that they are exploited by the company. In response, ASOS has introduced a number of measures to improve working conditions, including introducing a minimum salary and holiday pay scheme etc.

The red ocean strategy is where companies struggle to survive and compete. The blue ocean strategy is where there are few companies but they all dominate their respective markets.

Researchers believe that blue vs red ocean strategies are very much necessary for marketers to analyse before going for the decision making process. Whereas, for developing or planning new strategies, an organization is needed to analyse its current market position and standing.

ASOS believes that it has found the blue ocean by building an e-commerce platform that allows customers to buy clothes directly from the company’s website. This strategy has allowed ASOS to grow rapidly and become one of the UK’s leading fashion retailers.

In response, ASOS has introduced a number of measures to improve working conditions, including introducing a minimum salary and holiday pay scheme etc. Whilst it is too early to say whether this strategy will be successful, it offers an interesting example of how a company can use the red ocean strategy to become dominant in its market.

Red vs blue ocean strategy & competitors

Alternatively, Nike has developed the blue ocean strategy by creating new products that are not directly related to traditional sports. This approach has allowed Nike to create products such as running shoes and basketball uniforms, which have become very popular and are now used by many athletes worldwide.

Red ocean vs blue ocean strategy – The case of ASOS Plc UK