What are red and blue oceans?

The market universe is composed of two types of oceans: red oceans and blue oceans

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.

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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.

Origin of the terms

Professors Chan Kim and Renée Mauborgne introduced the concepts of red and blue oceans in their 2005 international best-seller Blue Ocean Strategy that has sold over 3.6 MILLION copies and is being translated in a record-breaking 46 LANGUAGES.

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