Blue Ocean

Also called Blue Ocean Strategy and Red Ocean

A strategy of creating a new, uncontested market space (a blue ocean) instead of fighting rivals in a crowded existing market (a red ocean). From the book Blue Ocean Strategy.

Why it matters

Competing in a red ocean means fighting on price and features against entrenched players; a blue ocean lets you set the terms. Finding one, by serving a need nobody else does, is a powerful but demanding path.

For example

Cirque du Soleil created a blue ocean by inventing a new kind of show, sidestepping the crowded, price-competitive circus market entirely.

Go deeper

Blue Ocean Strategy: The Value Curve and Four Actions Framework Blue Ocean Strategy · article A feature comparison matrix quietly assumes the goal is to match or beat every box a competitor ticks. The value curve flips that: you plot where to diverge on purpose (eliminate, reduce, raise, create) instead of chasing parity. This is the official framework page from the book's own authors, so you get the idea straight from the source before deciding whether a matrix helps you or just herds you toward copying. Open blueoceanstrategy.com →

Related terms

Also in Starting Up

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