The Explainer: Blue Ocean Strategy 2022

May 25, 2022

When you break the bounds of existing industries, competition becomes irrelevant.

The business universe consists of two distinct kinds of space, which we think of as red and blue oceans. Red oceans represent all the industries in existence today—the known market space. In red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are well understood. Here, companies try to outperform their rivals in order to grab a greater share of existing demand. As the space gets more and more crowded, prospects for profits and growth are reduced. Products turn into commodities, and increasing competition turns the water bloody.

Blue oceans denote all the industries not in existence today—the unknown market space, untainted by competition. In blue oceans, demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid. There are two ways to create blue oceans. In a few cases, companies can give rise to completely new industries, as eBay did with the online auction industry. But in most cases, a blue ocean is created from within a red ocean when a company alters the boundaries of an existing industry. This is what Cirque du Soleil did. In breaking through the boundary traditionally separating circus and theater, it made a new and profitable blue ocean from within the red ocean of the circus industry.


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  1. But chow?

  2. Thank you all very much

  3. the animation is amazing

  4. Blue Ocean Strategy has been invented by two teachers of INSEAD. It is designed around 8 'ideas'. One of them is to exceed the competition by innovating

  5. Exactly what clearpoint neuro is doing for drug discovery and device implants inside the existing neuro surgery market.

  6. Reply
    Business Management Concepts May 25, 2022 at 1:42 pm

    Well Explained Video….

    You can also watch this great explainer video on Blue Ocean Strategy:

  7. I only see red. It is "impossible" for me to find blue.

  8. Wowwwwwwww

  9. The animation is wonderful. Can anyone throw light on which tool was used for the animation ?

  10. Reply
    Romerlito Macalinao May 25, 2022 at 1:42 pm

    HBR thank you

  11. Simple and effective presentation

  12. Reply
    saiyed sallahuddin May 25, 2022 at 1:42 pm

    Harvard Thank you

  13. Reply
    Open Business 我要做生意 May 25, 2022 at 1:42 pm

    Why we should DEFINITELY go to Red Ocean instead of Blue Ocean

  14. Blue Ocean Strategy This international sales success defies everything you thought you knew about the requirements for strategic success.
    Blue Ocean Strategy Book By Renée Mauborgne and W. Chan Kim (PDF-Summary-Review-Online Reading-Download):

  15. Used Cirque de Soleil as example…and yet they didn't survive the COVID economy.

  16. Apple joined a Red-Ocean market as there already existed a lot of different mobile phones and define their own Blue Ocean market …still fascinated

  17. Blue Market Strategy is amazing! It creates new industry, new market, with the considerations of adding (value and benefits) with cost consideration stays in business for a long time and becomes unique that no other company can give the same products and services. – Felicidad PFA

  18. Most startups die because they lack the strategy to be innovative and fall into the trap of joining competitive markets instead of creating their own market. Those who follow the blue ocean strategy like AirBnB, Uber, Southwest airlines, etc. did have become increasingly successful.

  19. It's an amazing strategy and i strongly recommend it , Thank You Harvard

  20. Blue Ocean Strategy is a fancy way of saying, "Differentiate or die."

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