A red ocean is a saturated market with industry competitors.

The counter to the blue ocean is the red ocean. Back to: STRATEGY & PLANNING Blue Ocean vs Red Ocean Strategy The result is the development of a market that is devoid of competition and allows for extensive growth or growth potential without the need for competitive differentiation or cost advantage. This innovation may take place at any or all stages of the value chain. Value innovation involves the pursuit of both differentiation and low-cost strategies to open up new and non-competitive markets. These new markets are blue oceans.Ĭreating a blue ocean is difficult and generally requires the company to innovate (a concept coined as value innovation) in a way that creates a previously non-existent or unrealized demand. It posits that creating a new market can be more beneficial than competing in an existing market with established competitors. Kim and Mauborgne of INSEAD Business School. The blue ocean strategic concept was developed by Profs.

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