What is Blue Ocean

 The blue ocean strategy is about helping your company gain uncontested market space
separate from other, similar businesses. 
 The blue ocean strategy represents the simultaneous pursuit of high product
differentiation and low cost, making the competition irrelevant.
Characteristics of Blue Ocean

 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 firm’s activities in pursuit of differentiation and low cost.
Examples of Blue Ocean

 Ford
 Nintendo
 Netflix
What is Red Ocean?

 It involves competing in industries that are currently in existence. This often requires
overcoming an intense level of competition and can often involve the commoditization of
the industry where companies are competing mainly on price.
Characteristics of Red Ocean

 Focus on competing in an existing marketplace.

 Focus on beating the competition in the market.
 Focus on the value/cost trade-off.
 Focus on exploiting the existing demand in market.
 Focus on performance by implementing better marketing, a lower cost base, etc.