What is a blue ocean strategy?

The concept was introduced by professors W. Chan Kim and Renée Mauborgne in their 2005 book. They define “red oceans” as existing industries where companies compete fiercely, often on price, and “blue oceans” as new market spaces with little or no competition. Cirque du Soleil is a classic example: instead of competing with traditional circuses (animals, star performers), it created a new entertainment category blending circus with theatre. The strategy emphasises value innovation — simultaneously pursuing differentiation and low cost by eliminating factors the industry takes for granted and creating ones it has never offered.