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Red oceans represent all the industries in existence today – the known market space. In red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are well understood.

In Blue Ocean, demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid. Blue ocean is about doing business where there is no competitor.

  • Create uncontested market space
  • Make the competition irrelevant
  • Create and capture new demand
  • Break the value/cost trade-off
  • Align the whole system of a company’s activities in pursuit of differentiation and low cost

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This post is based on the article Blue Ocean Strategy, written by W. Chan Kim and Renee Mauborgne, published in the HBR of October 2004