Blue Ocean Strategy

What are blue oceans and red oceans ?

• In blue oceans, demand is created rather than fought over.
• In red oceans, companies compete by grabbing for a greater share of limited demand.

Two ways to create blue oceans.

• Launch completely new industries,
• Create from within a red ocean by expanding the boundaries of an existing industry.

How to create blue ocean ?

• Find and develop markets where there is little or no competition—blue oceans
• Exploit and protect blue oceans

Challenges

• Identifying and validating the unmet needs and preferences of potential customers
• How to create new demand ?
• More suited for long-term solutions

Like most consultants, this strategy too was created after studying successful businesses, and not the unsuccessful. It focuses on What and not How ?