Blue Ocean Strategy: Escaping Cut-Throat Competition by Creating New Market Space

Blue Ocean Strategy is a powerful strategic marketing approach that encourages businesses to move away from highly competitive, saturated markets—what are called red oceans—and instead focus on creating and capturing new demand in largely uncontested markets. The goal? Make the competition irrelevant.

This stands in sharp contrast to a red ocean strategy, where businesses fight to outperform rivals in crowded markets. These environments are often characterized by cut-throat competition, shrinking margins, and a constant battle over existing demand—turning the ocean metaphorically "blood red."

In a blue ocean, the market space is undefined and uncharted—more like a wide-open sea of opportunity. Here, instead of competing, companies create a leap in value innovation, simultaneously increasing value for customers while reducing costs for the company.

Why Blue Ocean Strategy Matters

Blue ocean strategy is particularly well-suited to enterprises struggling to differentiate themselves in highly saturated markets dominated by well-established competitors. In such markets, supply often outpaces demand, leaving businesses fighting for survival and profitability.

The blue ocean approach provides a way out of this trap by redefining the game: rather than striving to win in the existing playing field, you create a new one where you set the rules.

Origin of the Strategy

The concept was introduced by Professors W. Chan Kim and Renée Mauborgne in their groundbreaking book:

"Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant"  Since its release, the strategy has become widely adopted by business.

Key Tools for Implementing a Blue Ocean Strategy

To help organizations put this strategy into action, we offer a Blue Ocean Strategy Template Portfolio at the Business Tools Store.

Our portfolio contains eight essential tools designed to define, develop, and implement a blue ocean strategy:

• ✅ Eliminate-Reduce-Raise-Create (ERRC) Grid
  – Included in 3 different editable formats. Helps you review your value proposition and challenge industry assumptions.
• ✅ Six Paths Framework
  – A systematic way to explore new value opportunities across alternative industries, strategic groups, buyer groups, etc.
• ✅ Three Tiers of Noncustomers
  – Helps you identify, and target overlooked market segments that are currently not being served.
• ✅ Buyer Utility Map
  – Visualizes where your offering creates (or fails to create) utility for the customer, across the full buyer experience cycle.
• ✅ Four Hurdles to Strategy Execution
  – Available in two formats. This tool helps you anticipate and overcome resistance to your strategy rollout.

Who Can Benefit from Blue Ocean Strategy?

• Companies locked in price wars or low-margin markets
• Startups looking to disrupt traditional industries
• Innovators aiming to differentiate through customer experience
• Strategic planners wanting to reimagine their competitive landscape

Summary

Red ocean strategies are about competing.
Blue ocean strategies are about creating.

If your business is struggling to stand out in an overcrowded market—or if you're looking for the next big opportunity—then blue ocean thinking may be the strategic breakthrough you need.

Our Blue Ocean Strategy Template Portfolio is designed to help you take practical steps toward identifying new market space, building a compelling strategy, and executing it effectively.

Check out our portfolio of Blue Ocean templates and start building  your blue ocean strategy.