Red Ocean Strategy Known market space Industries boundary are well defined and accepted Competitive rules of the game are known Outperform rivals and grab a greater share of existing demand Crowding: prospects for growth and profits are reduced Commoditization and cut throat competition (Red ocean) Blue Ocean strategy Untapped market space Opportunity for highly profitable growth Create from red ocean by expanding the existing industry boundaries Competition is irrelevant since rules of game are yet to be set Can we ignore red ocean? Red ocean will always matter However, supply exceeding demand in most industries, competing for a share of contracting market will not be enough