Blue Ocean Strategy
How to create Uncontested Market Space and Make Competition Irrelevant
Market space is composed of two sorts of oceans : red oceans and blue oceans. Red oceans represent all the industries in existence today. Blue oceans represent all the industries that are not in existence today. This is known as unknown market space. In the red ocean, industry boundaries are defined and accepted and competitive rules of the game are known. Here companies try to outperform their rivals to grab a share of existing demand. As the market space get crowded, prospects for profits and growth are reduced. Products become commodities and cutthroat competition turns the red ocean bloody. Blue ocean in contrast are defined by untapped market space, demand creation and the opportunity for highly profitable growth. Industries never stand still they continuously evolve. Value innovation is the cornerstone of the blue ocean strategy. Instead of focusing on beating the competition, you focus on creating a leap in value for buyers and your company thereby opening up new and uncontested market space. The book explains how to blue oceans are created and how businesses of tomorrow will survive on the key thing - differentiation.
