Blue Ocean Definition
In business, blue ocean is a term used to describe a market space that is uncontested and has untapped potential.
In other words, a blue ocean is an industry or sector where there is potential for high growth and profitability, but little or no competition.
The blue ocean strategy was first introduced in the book Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant, written by W. Chan Kim and Renée Mauborgne.
The key to creating a blue ocean is to find a way to offer something unique that your target market finds valuable, but that your competitors are not offering. This could be a new product or service, a new business model, or a new way of reaching your target market.
For example, when Southwest Airlines entered the airline industry, they created a blue ocean by offering low-cost air travel that was accessible to more people than the major airlines. This allowed them to tap into untapped demand and grow quickly in their early years.
