Blue and Red Ocean Business Strategy

Blue ocean strategy was created by W.Chan Kim and Renee Mauborgne after a decade-long study of 1 ! strategic mo"es on more than #! industries o"er 1!! year. $he term blue ocean means industries not yet in e%istence while a red ocean is already established and is hea"ily contested. $he rise of blue ocean industries relies hea"ily on inno"ation in creating new &roducts and ser"ices not yet in e%istence. By creating a blue ocean' you are uncontested. Creating a blue ocean means creating an industry that hasn(t e%isted yet. By combining new and old technology' you can create new inno"ating &roducts that can define a new industry. )lso' by combining new and old methods of ser"ices' you can create an industry that hasn(t e%isted yet. Creating new industries for unlimited &otential and &rofit is the core of the blue ocean strategy. Red ocean is where com&etitions e%ists and are hea"ily contested. *rofits and growths are thin in a red ocean. +t is basically a ,ero sum game were only the strongest sur"i"es. -owe"er' it is easier to enter because the industries are defined already so you can .ust co&y others/ howe"er' sur"i"ing is a different story. 0et(s .ust say red ocean is easy to enter' hard to sur"i"e. 1ach ocean has it own ad"antages and disad"antages. Red ocean is easier to enter since the industry is already defined but it is much harder to sur"i"e. Blue ocean are hard to do because it means creating a whole new industry that can be ris2y if there is no demands for it' but if there is a mar2et you ha"e "ast and almost limitless growth. 3f the two oceans' which one are you4 + want to say that human ad s&ace is sort of a blue ocean5