The market universe is composed of two types of oceans: red oceansandblue oceans.
What are red oceans?
Red oceans are all the industries in existence today – the known market space.
What are blue oceans?
Blue oceansare all the industries not in existence today – theunknownmarket space.
Why do we call them red oceans?
Cut-throat competition in existing industries turns the ocean bloody red. Hence the term ‘red ocean’.
Why do we call them blue oceans?
Unexplored and untainted by competition, ‘blue oceans’are vast, deep, and powerful in terms of opportunity and growth.
What is red ocean strategy?
Red ocean strategy is all about competition. As the market space gets more crowded, companies compete fiercely for a greater share of limited demand. LEARN MORE.
What is blue ocean strategy?
Blue ocean strategy creates new demand. Companies develop uncontested market space rather than fight over a shrinking profit pool. LEARN MORE.
What outcomes does red ocean strategy produce?
Competing inred oceansis a zero-sum game. A market-competing strategy divides existing wealth between rival companies. As competition increases, prospects for profit and growth decline.
What outcomes does blue ocean strategy produce?
Creatingblue oceansis non-zero-sum. There is ample opportunity for growth that is both profitable and rapid.
