Red Ocean and Blue Ocean Strategies



Innovation is often a top concern for managers and executives. To overcome the inherent dangers of this activity, most firms take a portfolio approach of pursuing strategies that have different levels of risk and return. We viewed these components from the perspective of red vs. blue ocean strategies. This is a two part question: (1) how does blue ocean strategy fundamentally differ from a red ocean strategy and (2) illustrate how at least three major psychological biases cause many CEOs to focus on Red Ocean more so than Blue Ocean.

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