Red Ocean Versus Blue Ocean Strategy

Red Ocean Strategy

• Complete in existing marketing space
• Beat the competition
• Exploit existing demand
• Make the value-cost trade-off
• Align the whole system of a firm's activities with its strategic choice of differentiation or low cost

Blue Ocean Strategy

• Create uncontested market space
• Make the competition irrelevant
• Create and capture new demand
• Break the value-cost trade-off
• Align the whole system of a firm's activities in pursuit of differentiation and low cost

Source: For more information, please read page 18, Blue Ocean Strategy: How to Create Uncontested Maket Space and Make the Competition Irrelevant, W. Chan Kim and Renee Mauborgne, 2005.