Blue Ocean Strategy is when a business innovation is launched that is a complete game- changer. Unlike a disruption, this is not about a new product, or even a new model, but a simple repackaging. An ideal example of the same is the Cirque du Soleil from the Quebec province of Canada. It used to be a circus, but when attendances to circuses dropped due to digital alternatives, the company reinvented itself. Most companies are trapped under Red Ocean strategies. A Red Ocean is a corporate strategy where the status quo is maintained for ever. The latter try to defeat the competition, while the former tries to differentiate itself completely. There are also several cases of incumbents creating blue oceans, within their core businesses. GM and Chrysler within the auto industry is one such case. Red oceans exploit an existing need, while blue oceans create and capture new ones. The former work on a value versus cost trade- off, while the latter beat the same. Undoubtedly, several barriers exist in the process.

Source:https://hbr.org/2004/10/blue-ocean-strategy?utm_campaign=hbr&utm_medium=social&utm_source=facebook

Uploaded Date:24 March 2020