Blue Oceans represent all industries

NOT

in existence today.

This is undefined market space, otherwise known as OPPORTUNITY.

Created through; value innovation, focus, differentiation, creation of demand, new marketplace etc.

• New Market Space; Unknown market space
• Industries not in existence today
• Untapped market demand
• High profit growth at low risk

Red Oceans represent all industries in existence today.

They have defined rules, competitors, and market boundaries.

They exist through; competition, price wars, market share, commoditization, bench-marking, strategic positioning, value add etc.

Most blue oceans are created from red ocean companies expanding industry boundaries.

The BOS concept was developed by Prof Chan Kim and Renee Mauborgne

RED OCEAN	BLUE OCEAN
Beat the competition Serve existing customers / segment the market Benchmark the competition Position your strategy within existing industry boundaries (niche, low cost or differentiated) Creative destruction (replacing existing demand)	Make the competition irrelevant Focus on noncustomers of the industry Ignore competition – you cannot learn from them Reconstruct (go beyond) industry boundaries Non-destructive creation (creating new demand)

• Blue Ocean Strategy was recognized as the business book of the last decade.
• Most foreign translations (43 languages)
• Bestseller on 5 continents. Harvard Business Press International Bestseller, Amazon Top 10, Wall Street Journal Bestseller, Business Week Bestseller, National (American) Bestseller