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The strategy argues that firms should focus on creating value instead of competing within an existing market, which is often saturated. The blue ocean strategy focuses on three strategy propositions: focus on value innovation, not on competing focus on the big picture, not the competing firms and make competition irrelevant. Blue ocean strategy seeks to move away from existing markets, known as the “red oceans,” and create an entirely new market space, or “blue ocean,” that does not yet exist. In a red ocean market, the supply often exceeds the demand, and the competition is fierce, resulting in a shrinking profit pool for all industry players. With a blue ocean strategy, however, the goal is to identify and create new, uncontested market spaces, thus leaving the competition behind. Chan Kim and Renée Mauborgne, professors at INSEAD, and is based on the idea of creating “value innovation”-products or services that represent a leap in value for customers and, consequently, a leap in profits for companies.Ī “red ocean” denotes an existing and highly competitive market. What is the Blue Ocean Strategy?īlue ocean strategy is a business strategy focused on creating uncontested market space or a “blue ocean” of profitability and growth. This article provides a comprehensive overview, including essential tips and insights about how to strategically apply this innovative system in order to stand out from the competition and make waves across your industry.Īlong with a thorough discussion of the concepts and key components of the blue ocean strategy, it provides practical advice on how businesses can use this method to differentiate themselves, create long-term success, and increase their market share.įinally, find valuable case studies to help you get started and understand why the blue ocean strategy should be part of any company’s strategy toolbox. Learn the definition, advantages, and examples of a Blue Ocean Strategy: a unique, effective business strategy employed to gain an edge over competitors and maximize profits.