An idea that is outside the box is swimming in a blue ocean. As Kim and Mauborgne mentioned, this comfortability comes from businesses being rooted in military strategy. An example is looking at marketing campaigns – the definition is rooted from military campaigns – which means a series of interconnected actions to produce a certain result. Businesses stuck thinking inside the box will always be at war for market share. Unattractive or nonexistent markets in a blue ocean strategy mean opportunities for creation. Most companies live in red oceans and are more comfortable doing so. In a blue ocean, you create your demand with an incentive of value for consumers. A blue ocean is an unchallenged market space where rivals and competition are insignificant. Differentiation + Low Company Costs + Increase Consumer Value = Blue Ocean StrategyĬoined back in 2005 by INSEAD business professors Chan Kim and Renée Mauborgne, the Blue Ocean Strategy defines the nontraditional method of constructing your own market. The term is defined along with the traditional “Red Ocean Strategy.” A red ocean is defined as an established market, one that already has intense competition and a place where rivals fight for market share.
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