Blue Ocean Strategy
by W. Chan Kim, Renée Mauborgne
Businesses that employ “red ocean strategy” accept their industries prevelant strategies as given and compete for a larger slice of market share of existing markets.
Companies that take a “blue ocean strategy” create new uncontested markets by extending their reach and appealing to new customers.
Red ocean companies endeavor to win existing markets through low price or differentiation. Competition is fierce and profits are limited.
Blue ocean companies can combine low costs with high differentiation to appeal to new, untapped market segments.