How Jio Made Competition irrelevant for them by implementing a blue ocean strategy?
According to the book ' blue ocean strategy ' published by W. Chan Kim and Renée Mauborgne, professors at INSEAD there are two types of oceans in market .1) Red Ocean and 2) Blue Ocean
What is the Red Ocean ?
All the businesses have to compete in a space where they have a lot of competitors and their business growth is less because of the competition in the market. This is called a red ocean where the competition and market space is less.
What is Blue Ocean Strategy?
For a New entrant in any business, it is tough for them to compete in red ocean. So they usually follow a blue ocean strategy where they offer their product or service at a low cost to open a new market space and create new demand. This will make competition irrelevant and create monopoly in the market.
Before the entry of Jio Indian telecom industry is competed by companies like Airtel, Idea, Vodafone, BSNL, and other companies. They were competing in red ocean and there is no space for new telecom companies.
So Jio implemented its blue ocean strategy by offering data at cheap prices to make competition irrelevant for them in the Indian telecom industry.