A Blue Ocean Strateg is a business approach and mindset in which brands find and capture uncontested markets, rather than competing within existing ones.
Professor W. Chan Kim and Renée Mauborgne wrote “The Blue Ocean Strategy” in 2004. In the text, the authors describe two approaches to business: red oceans and blue oceans.
Businesses take a red ocean approach when they seek to beat their competition within existing markets. They make value-cost trade-offs to manage their decision-making.
A Blue Ocean Strategy, on the other hand, involves creating new markets that might not yet exist. These businesses circumvent competition by capturing brand new demand and innovating new products or services altogether.
A successful Blue Ocean Strategy can lead to rapid growth, strong customer loyalty, and a bolstered brand reputation. But the strategy isn’t without its risks. Because it involves creating totally new, uncontested markets, it requires ingenuity, investment, and top-notch marketing. Without these elements, a Blue Ocean Strategy can quickly fail.