Blue Ocean Strategy

Blue Ocean Strategy

What are blue oceans and red oceans ?

  • In blue oceans, demand is created rather than fought over.
  • In red oceans, companies compete by grabbing for a greater share of limited demand.

Two ways to create blue oceans.

  • Launch completely new industries,
  • Create from within a red ocean by expanding the boundaries of an existing industry.

How to create blue ocean ?

  • Find and develop markets where there is little or no competition—blue oceans
  • Exploit and protect blue oceans


  • Identifying and validating the unmet needs and preferences of potential customers
  • How to create new demand ?
  • More suited for long-term solutions

Like most consultants, this strategy too was created after studying successful businesses, and not the unsuccessful. It focuses on What and not How ?

VRIN Model

Value Net Model (Brandenburger and Nalebuff)

Resource-Based View (RBV)