What are red oceans?
Red oceans are all the industries in existence today – the known market space.
What are blue oceans?
Blue oceans are all the industries not in existence today – the unknown market 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.
What is blue ocean strategy?
Blue ocean strategy creates new demand. Companies develop uncontested market space rather than fight over a shrinking profit pool.
What outcomes does red ocean strategy produce?
Competing in red oceans is 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?
Creating blue oceans is non-zero-sum. There is ample opportunity for growth that is both profitable and rapid.