Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant

“The only way to beat the competition is to stop trying to beat the competition.”

This quote introduces the fundamental approach to blue ocean strategies. Rather than play by traditional economic rules, which trap businesses in a cycle of bloody competition for very marginal growth, blue ocean strategies break free of these restrictions and into uncontested waters. This gives companies the chance to see their profits increase exponentially.

“The reality is that industries never stand still. They continuously evolve. Operations improve, markets expand, and players come and go. History teaches us that we have a hugely underestimated capacity to create new industries and re-create existing ones.”

The authors are attempting to dispel the idea that blue ocean strategies are risky and high cost. Historically, businesses who saw an opportunity to innovate have inadvertently broken into blue waters without there having been a term for it. Blue ocean strategies can therefore be seen as part of a natural cycle of market evolution.

“To fundamentally shift the strategy canvas of an industry, you must begin by reorienting your strategic focus from competitors to alternatives, and from customers to noncustomers of the industry.”

This quote underlines the difference between red and blue ocean strategies. Since red oceans force companies to focus on outcompeting rivals for marginal profit gains, breaking toward blue oceans requires a fundamental shift in mentality. Instead of pouring resources to benchmark the opponent, businesses should redefine their product’s value to extend beyond the traditional industry standard, thus allowing them to reach noncustomers and expand demand.