Blue ocean strategy
In one sentence
Instead of fighting rivals in a crowded market, create a new space where competition doesn't matter yet.
The simple version
A 'red ocean' is a market full of sharks fighting over the same customers. A 'blue ocean' is new, open water. You find it by asking which things your industry takes for granted that you could remove, reduce, raise or create.
Eliminate
What can we drop entirely?
Reduce
What can we do less of?
Raise
What should be far better?
Create
What has nobody offered?
Why it matters
Competing on the same features and price is exhausting. A fresh angle can unlock customers nobody was serving.
How to do it
- 1List the factors your industry competes on.
- 2Eliminate: what can you drop entirely?
- 3Reduce: what can you do well below the standard?
- 4Raise: what can you do well above the standard?
- 5Create: what has the industry never offered?
- 6Draw your new 'strategy canvas' and compare.
Real-world example
Cirque du Soleil removed animal acts and star performers, but added theatre and storylines — creating a new kind of entertainment for adults.
What the books say
Create uncontested market space by pursuing differentiation and low cost at the same time — 'value innovation'.
Common mistakes
- Just adding more features.
- Assuming a blue ocean stays empty forever.
- Ignoring whether the new space has real demand.
Questions people ask
Is this the same as Zero to One?
They overlap: both say avoid head-on competition. Blue Ocean gives a step-by-step tool (eliminate–reduce–raise–create).
References
- [1]
- [2]
More books on this in the library
Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant
Kim and Mauborgne teach founders to use ERRC grid (Eliminate-Reduce-Raise-Create) for crafting uncontested markets, ideal for startup pivots from red ocean battles. Core value innovation framework contrasts Porter's competitive focus by prioritizing demand creation over rivalry.
Blue Ocean Strategy
W. Chan Kim and Renée Mauborgne's book introduces the concept of creating new market spaces, or 'blue oceans,' rather than competing in existing ones. It's a strategic read for innovative entrepreneurs.
Only the Paranoid Survive: How to Exploit the Crisis Points That Challenge Every Company
Andy Grove, former CEO of Intel and Time Magazine's 1997 Man of the Year, reveals his strategy for navigating Strategic Inflection Points—massive changes that can make or break a company overnight. A classic of managerial and leadership skills essential for founders facing disruptive change.
The Advantage: Why Organizational Health Trumps Everything Else in Business
Patrick Lencioni shows that organizational health—minimal politics, clarity, high morale—is the ultimate competitive advantage. Essential for scaling companies.
The 22 Immutable Laws of Marketing: Violate Them at Your Own Risk!
Outlines 22 fundamental marketing laws like Leadership (be first) and Focus (own a word) for startups to build dominant positions and acquire customers by creating categories. Use cases include Starbucks owning 'premium coffee'; vs Traction Channels, prioritizes mental positioning over tactical distribution for long-term customer loyalty. Key for go-to-market strategies in competitive markets.
Understanding Michael Porter: The Essential Guide to Competition and Strategy
A foundational strategy book that explains Michael Porter’s core frameworks—including competitive advantage and industry analysis—in accessible language. Highly relevant for startup founders who need to understand market structure, positioning, and how to build durable competitive advantage from day one.