Created by Renee Mauborgne and W. Chan Kim in 2004 and published in the book Blue Ocean Strategy, it is a business strategy that is based on searching a new market as if it were a blue ocean, as if it were a beach that has not been discovered.
When we want to relax and decide to go to the beach, when we arrive, we meet thousands of people who have had the same idea, so this strategy proposes that instead of staying on the beach fighting for a place, you go out and look for another beach one with a blue ocean where you can enjoy , this is something metaphorical and the idea is to apply it to the business world, the idea is to search and find a market where you are the first to arrive and have everything to yourself from the beginning.Many companies fight to see who sells cheaper, they fight to take the other's customers, something that ends up hurting the companies in dispute, the blue ocean strategy proposes to create new markets instead of competing in those already established, according to the authors Contrary to this blue ocean, there is a red ocean full of blood and war between companies that compete in saturated markets, with few customers and little room for growth.
The business models of the red oceans start from the military world, where they are an open war against competition, where if you want to grow as a company you must defeat your enemy and thus you will grow, usually this type of maneuver damages the market itself, affecting the price.
In a blue ocean, companies take risks and there is no battle, at least at the beginning in this way you can generate a lot of profits and a lot of value as a company, but the secret and the key to this is to innovate, of course you can also with a product that You already manage attack another market segment that you had neglected, and thus reach the blue ocean.
Red oceans companies believe that the structure of their industry is immovable and that is why they must conform to it and never innovate, on the other hand, blue ocean companies are capable of improving and rebuilding the foundations of their industry and taking it to other levels, to that the authors created strategies, but I'll talk about that another time.