--Nanthababu.

S Blue Ocean Strategy is a way to make the competition irrelevant by creating a leap in value for both the company and its customers. Blue Ocean denotes all the industries that are not in existence todaythe unknown market space, untainted by competition. Blue Ocean Strategy,

Creates uncontested market space Make the competition irrelevant Focus on non-customers Create and capture new demand Break the value-cost tradeoff (Seek greater value to customers and low cost simultaneously) Align the whole system of a firms activities in pursuit of differentiation and low cost Ample opportunity for rapid growth in terms of profitability.

Blue Ocean Strategy allows innovative startups to identify uncontested market spaces and render their competition irrelevant. The principle behind Blue Ocean Strategy is that all markets can be divided into red oceans and blue oceans. Red oceans are characterized by consensus a consensus as to who the customer is, who the vendors are, and what the product being sold is. In red oceans, executives captivated in a conception-cage of competitive strategy business thinking, have been rivaling head to head with their competition over the same consumer segments doing exactly the same things, only better and cheaper in order to offer customers a better cost/value tradeoff in order to convince them to stick around with their wallets open. In the process, these executives wore out their own companies and their profits were ground to dust. Now, the Blue Ocean enunciation, based on long years of research, claimed that both serenity and profitability can be amply found in Value Innovation, which creates, via a new business model and new products, a Virgin territory devoid of me-too brand propositions and cutthroat pricing

Consequently, in such a market, selling to the same customers, buying from the same suppliers, making the same thing, there is intense competition and thinner and thinner profit margins.