Blue Ocean Strategy - A Company Caught in the Red Ocean

A Company Caught in the Red Ocean

When a company's value curve converges with its competitors, it signals that a company is likely caught within the red ocean of bloody competition. A company's explicit or implicit strategy tends to be trying to outdo its competition on the basic of cost or quality. This signals slow growth unless, by the grace of luck, the company benefits from being in an industry that is growing on its own accord. This growth is not due to a company's strategy, however, but to luck.

Source: Blue Ocean Strategy, W. Chan Kim and Renee Mauborgne, Page 42