When competitors attempt to gain an advantage through cost leadership or product improvements, what strategy are they employing?

The strategy being employed when competitors attempt to gain an advantage through cost leadership or product improvements is the Red ocean strategy. This term refers to the competitive marketplace where existing industries and market spaces are saturated. In this scenario, companies compete fiercely for market share, which often leads to a "bloody" competition characterized by the struggle to outperform rivals by lowering costs or enhancing products.

In a Red ocean, businesses focus on defeating their competitors and capturing a larger portion of the existing demand, which usually results in reduced profit margins due to intense rivalry. Companies involved in this strategy often have to make higher investments in marketing and innovation to keep up with their competitors, as they are all vying for the same customer base and market.

In contrast, terms like Blue ocean strategy describe a scenario where companies create new market spaces and demand, reducing competition. The other options presented, such as Green ocean and White ocean strategies, are not widely recognized concepts in strategic management, further reinforcing that the primary focus here is on the competitive struggles characteristic of a Red ocean.