Several factors contribute to the prevalence of Red Oceans:
- Market Maturity: As industries mature, they naturally become more competitive as more players enter the market. - Limited Innovation: Companies may focus on incremental improvements rather than groundbreaking innovations, leading to homogeneity. - Short-Term Focus: Businesses may prioritize short-term gains over long-term strategy, leading to price wars and intense competition. - Customer Familiarity: Companies often stick to familiar markets and products, avoiding the risks associated with exploring new opportunities.