Definition
Red Ocean: compete in existing markets; beat rivals. Blue Ocean: create uncontested market space by redefining value and cost boundaries (value innovation).

Introduction
When everyone competes on the same dimensions, profits erode. Blue Ocean reframes the value curve, eliminating/reducing some factors while raising/creating others.

Explanation

Value Innovation: simultaneous pursuit of differentiation and low cost.

Strategy Canvas: plot industry factors vs. offering level; redraw curve.

Four Actions: Eliminate, Reduce, Raise, Create.

Risks: misreading willingness-to-pay; underestimating capability needs.

When to use: stagnant, commoditized industries with unmet noncustomers.

Key Takeaways

Don’t just fight rivals—change the game.

Anchor on noncustomers’ barriers and pain points.

Ensure organizational capabilities match the new curve.

Real-World Case
Cirque du Soleil: removed costly animal acts, raised artistry/story, created theater-like experience—new audience, premium pricing.

Reference: Company case write-ups.