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The rules of business here are well defined and companies within the red ocean play within accepted industry boundaries. The key to performing well in red oceans is to outperform the competition and gain greater share in the market space. The red ocean gets overfilled with competitors and products start to become commodities. This commoditization means that customers will become extremely price sensitive and price wars will drive down profit margins. Every industry either is or will become a red ocean and traditional well known strategies such as Porter's Five Forces Model are used by companies to help them survive in bloody red ocean environments...
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