| Factor | Red Ocean | Blue Ocean |
|---|---|---|
| Competition | High, price wars, crowded | Low, you define the space |
| Focus | Beating rivals | Creating new demand |
| Strategy | Do it better or cheaper | Do it different, change the rules |
| Customer | Fight for existing buyers | Win non‑buyers and underserved groups |
| Risk | Lower novelty, higher rivalry | Higher novelty, lower rivalry |
Most businesses fight over the same customers, with the same offers, in the same crowded spaces. The “blue ocean” idea asks a simpler question: what if you stopped fighting and just went where almost nobody else is looking? If you get this right, you do not need to outspend people on ads, undercut them on price, or burn out chasing micro gains. You carve a new little corner where your rules apply. That is why this matters for you, your business, and honestly your life choices too.
What “Blue Ocean” Strategy Really Means
Blue Ocean Strategy comes from W. Chan Kim and Renée Mauborgne. The original concept can sound bigger than it needs to be, so let me strip it down.
Red oceans: known markets where lots of competitors fight over the same demand. Think coffee shops on the same street, marketing agencies offering the same services, coaches posting the same content.
Blue oceans: new or quiet markets where you are not fighting over the same customers in the same way. You are not only trying to “beat competition.” You are trying to make that competition less relevant to your buyer.
You are not inventing teleportation. You are often just reframing value for a specific group in a fresh way.
The core of blue ocean thinking is not wild creativity. It is discipline: choose who you serve, what they value, and what you will stop doing.
Value Innovation: The Heart of It
The key phrase from the original framework is “value innovation.”
You create value for buyers while also improving your profit position. That sounds like buzzwords, but it boils down to two moves at the same time:
1. Raise and create things that matter a lot to a specific group.
2. Reduce and eliminate things that do not matter to that group.
You are not just adding more features. You are rebalancing the value equation.
For example, Cirque du Soleil:
– Cut animals, multiple shows per day, star performers.
– Raised story, music, artistic design, and ticket price.
They did not target people who loved cheap circus tickets. They targeted adults willing to pay theater prices for a different kind of experience.
You can do the same in your smaller space, even if you are a solo consultant or a tiny team.
The Red Ocean Trap You Might Be In Right Now
Most people are in a red ocean without calling it that. You see it in phrases like:
– “I help everyone with everything in marketing.”
– “I am a life coach for anyone who wants to grow.”
– “We are the best full-service agency.”
This pushes you into direct comparison. Clients compare you on price, number of features, or vanity signals like follower counts.
Technically, competition is not bad by itself. It shapes you. But living inside a constant comparison contest drains your time and energy. In business terms, your margins get squeezed. In life terms, your mental bandwidth shrinks.
Red oceans show up in life decisions too.
– You chase the same career path everyone in your field chases.
– You copy routines or habits because “everyone does it.”
– You measure your success against people in a game you did not even choose.
Blue ocean thinking is a way to step out and ask: what if I choose a different game?
Misconceptions That Hold People Back
“Blue Ocean Means Something Completely New”
People think they must invent a brand new category like Airbnb or Uber. Rare. Risky. Most real blue oceans are much more modest.
Examples:
– A fitness coach focusing only on female founders with less than 90 minutes a week to train.
– A copywriter who only works with course creators in the health field, and charges based on revenue share.
– A bookkeeping service that refuses traditional monthly retainers and only charges on cash collected.
Nothing “revolutionary.” Yet in each case, the offer feels fresh to the right group.
“It Needs Huge Resources”
Large companies talk about strategy like it is a big-budget activity. Smaller founders copy that idea and freeze.
Blue ocean work comes from constraints:
– You cannot serve everyone.
– You cannot match the largest competitor on ads or features.
– You cannot out-hire them.
So you pick a narrow group and a specific type of value and design only for that.
A tight constraint can be a gift. It forces you to choose what matters, which is the first step toward a blue ocean.
“Blue Ocean Means No Competition Ever”
The moment you prove your space has money in it, people show up. That is normal.
You are not trying to live forever without rivals. You are buying time:
– Time to build brand.
– Time to learn your buyers deeply.
– Time to get your economics right before it gets crowded.
If you keep evolving your offer, you can often create a new blue pocket inside your own space later.
The Four Actions Framework: How You Actually Design a Blue Ocean
To get out of theory and into practice, the core Blue Ocean tool is the Four Actions Framework:
– Eliminate
– Reduce
– Raise
– Create
Think of it as redesigning your “value curve.”
Eliminate: What Will You Stop Doing Completely?
This is the hardest part, especially for service businesses. We usually keep adding.
Ask:
– What features or services are there only because “everyone offers them”?
– What do your best clients not care about at all?
– What do you secretly hate delivering?
Examples:
– A web agency completely removing SEO retainers and only doing conversion design.
– A leadership coach dropping 1:1 calls and only running small group intensives.
– A SaaS tool removing half the dashboard options and only showing 3 key metrics for a niche role.
When you remove, you reduce your costs and signal to buyers what you are about.
Reduce: What Will You Do Less Of?
You will keep some parts of the old game, but on a smaller scale.
Ask:
– Where are we over-serving people?
– Where are we investing effort that does not move outcomes?
Examples:
– Fewer live calls in a program, more structured templates.
– Less custom work, more productized packages.
– Less social media activity, more deep content on one channel for a very clear audience.
Reduction gives you margin to raise and create somewhere else.
Raise: What Will You Dramatically Improve?
This is where you start to feel different from the market.
Ask:
– What do your best clients complain about in current options?
– Where do they say “I wish someone would just…”?
Examples:
– Faster setup or onboarding than anyone else in your category.
– Much deeper strategy support, not just execution.
– Clearly measured outcomes, not just deliverables.
You do not need to raise ten things. One or two big jumps often carry the value story.
Create: What Will You Add That Others Do Not Offer?
Creation is the visible innovation.
Ask:
– What could make your client think “I have not seen it done like this”?
– How can you shift the way they pay, consume, or measure success?
Examples:
– A “done with you” format in a space that only offers DIY or fully done-for-you.
– A performance-based pricing model where everyone else charges retainers.
– A tight community layer for a specific profile of buyer, tied directly to your offer.
Most people start with creation. Strong blue ocean moves start with elimination and reduction, then decide what to raise and create.
The Strategy Canvas: Seeing Your Market Differently
Before you change your offer, you want to see the “value curve” in your current red ocean.
A simple way:
1. List 8 to 12 factors your industry competes on.
2. Draw a basic graph: factors on the horizontal axis, level of offering on the vertical axis.
3. Plot your competitors.
4. Plot yourself.
Typical factors:
– Price
– Customization
– Speed
– Hand-holding / support
– Prestige or status
– Breadth of features
– Simplicity
– Guarantees
You will likely see this:
– You and your competitors look very similar.
– You are all raising the same variables and almost nobody is reducing or eliminating any.
Your blue ocean curve will look uneven:
– Extreme on some factors.
– Low or zero on others.
The goal is not a “prettier” curve. The goal is a different one that fits your chosen audience.
Finding Markets No One Else Is Watching
This is where your daily reality comes in. How do you actually find a blue ocean space?
Look For Non-Buyers, Not Just Unsatisfied Buyers
Kim and Mauborgne talk about three tiers of non-buyers. To keep it simple, think about people who:
– Could use what you sell.
– Have money.
– But do not buy from anyone in your category right now.
Why?
They might:
– Feel products are too complex.
– Think it is “not for people like me.”
– Be tired of broken promises.
– See all options as similar.
Examples:
– People who want coaching but hate vague, “woo” language.
– Owners who want marketing help but will not pay retainers.
– Busy parents who want personal growth, but cannot attend long sessions or events.
Non-buyers are usually where the quiet blue oceans sit.
Study the Edges of Existing Markets
Most “new” markets grow from the edges of old ones.
Ask:
– Who uses current solutions in weird ways?
– Who hacks together 3 or 4 tools to get one job done?
– Who sticks to an outdated method because nothing modern feels right?
You can find this by:
– Reading negative reviews in your space.
– Searching for “I hate [your industry]” and related phrases.
– Interviewing people who tried your category once, then quit.
These people often have clear language you can reuse.
Combine Two Worlds
Many blue oceans exist at the intersection of two fields.
Some examples:
– Therapy + business strategy for founders.
– Fitness + ADHD coaching.
– Financial planning + life design.
This mix can feel natural to you because of your background. Other providers see it as weird or “too niche.”
If the overlap solves a real problem for a clear group, you have the seed of a new market.
Blue Ocean in Life, Not Just Business
You can treat your personal career and life choices as a strategy problem too.
Design Your Own Career Niche
Instead of “marketer” or “coach” or “consultant,” think about the intersection of:
– Skills you are strong at.
– Problems you care about.
– People you understand better than most.
For example:
– “I help B2B founders with technical backgrounds tell clear stories to non-technical buyers.”
– “I coach mid-career managers who want to shift into advisory roles without losing income.”
You design a blue ocean for yourself inside a bigger job market.
Over time, this leads to:
– Better clients or job matches.
– Higher perceived value.
– Less competition from generic profiles.
Life Design: Choosing a Different Game
This same logic applies to how you live.
If everyone around you:
– Works 60 hours a week.
– Competes on visible status signals.
– Measures success by the same life milestones.
You can quietly choose another “market”:
– Different tradeoff between money and time.
– Different city or environment.
– Different set of relationships and projects.
You stop measuring yourself against the most crowded set of expectations. You still face tradeoffs, but less noise.
Blue ocean thinking in life is about asking: “What if I stopped trying to win this game, and chose a different game that fits me better?”
Practical Steps: Designing Your Blue Ocean Offer
Now let us pull this into a simple process you can run through.
Step 1: Choose a Narrow Group to Obsess Over
Broad positioning kills blue ocean efforts. Pick a group that is:
– Real and reachable.
– Has money or clear value to gain.
– Has clear frustrations or goals.
Examples:
– Solo consultants stuck between 10k and 30k per month.
– HR managers in tech companies with under 300 people.
– Parents of kids with a specific learning need.
Write down:
– What they wake up thinking about.
– What they are embarrassed to admit they struggle with.
– What language they use for their problems.
Step 2: Map Their Current Alternatives
You need to see their “red ocean” clearly.
Ask:
– What do they buy now?
– What do they try and quit?
– How do they solve the problem without your category?
For example, a founder trying to grow might:
– Hire agencies.
– Take courses.
– Consume podcasts.
– Ask friends.
All of those are your real competition.
Step 3: Use the Four Actions on Their Reality
Now run Eliminate, Reduce, Raise, Create on what they experience.
Example: Say you help small agencies grow.
They might be used to:
– Generic courses.
– Long theory.
– No personal support.
– No accountability.
– Lifetime access, but no real change.
You might design:
– Eliminate: Lifetime access, huge backlogs of content, large group calls.
– Reduce: Theory, broad tactics, community size.
– Raise: Personalized feedback, short implementation cycles, clarity.
– Create: A fixed-time, outcome-based program with live implementation and direct feedback, only for agencies in a certain revenue band.
From their view, you are not “another course.” You are a different category of experience.
Step 4: Craft a Simple, Specific Promise
Your blue ocean lives or dies in how you express it.
Work on one clear sentence:
– Who it is for.
– What outcome they want.
– How it is different.
Examples:
– “A 12-week sprint for B2B agencies between 20k and 80k per month to build a consistent lead system without paid ads.”
– “Financial planning for first-time tech leads who want to quit full-time in 3 to 5 years without lifestyle shocks.”
You do not need fancy wording. You need clarity that repels the wrong people and hooks the right ones.
Step 5: Test With Real People Fast
Blue ocean ideas can feel smart on paper and fall flat with humans. So you test quickly.
Ways to test:
– 10 to 20 direct conversations with target buyers.
– A simple sales page and a soft launch.
– A small pilot group with discounted pricing.
Listen for:
– “This is exactly what I have been looking for.”
– “I did not know I could get it like this.”
– Or silence, confusion, or “so how are you different again?”
If people do not feel the difference, refine your four actions or your audience.
Risk, Fear, and How to Manage Both
Blue ocean work looks risky. Staying in the red ocean feels “safer.” In reality, both have risk, just in different forms.
The Risk in Red Oceans
If you stay generic:
– You compete on price more.
– You depend on constant marketing volume.
– A bigger player can copy your offers and squeeze you.
There is comfort in familiarity, but the long-term upside is capped.
The Risk in Blue Oceans
If you try to carve a new space:
– People might not understand you at first.
– You might misjudge demand.
– You say no to “easy” short-term opportunities that do not fit.
You can lower this risk by:
– Starting small: one offer, one audience.
– Keeping costs low while you test.
– Setting clear time frames and milestones for validation.
You do not need to burn your current business to hunt for a blue ocean. You can carve a side channel, prove it, then shift more focus once it works.
Examples You Can Learn From (And Adapt)
Let us walk through a few patterns that you can mirror, even in very different fields.
From Full-Service to Productized Specialist
Red ocean: “We do all marketing for all types of businesses.”
Blue ocean version:
– Narrow audience: SaaS companies with 1 to 3 salespeople.
– Focus: Only lead nurture email flows tied directly to demos booked.
– Format: Fixed packages, fixed time frames, measured on results.
Eliminate:
– Random content.
– Social media management.
– Brand work.
Raise:
– Expertise in one metric.
– Speed.
– Relevance.
Result:
– Fewer clients, higher fees, clearer referrals.
– Competitors find it harder to copy your exact focus.
From Vague Life Coaching to Concrete Outcomes
Red ocean: “I help people live their best life.”
Blue ocean version:
– Audience: Senior managers in tech who want to move into advisory roles within 18 months.
– Promise: Build a “bridge” of skills, network, and finances so they can shift without income loss.
– Offer: A structured program that links career strategy, financial planning, and relationship building.
Eliminate:
– Generic motivation sessions.
– Unstructured weekly talks.
– Open-ended engagement.
Create:
– Step-by-step transition plan.
– Clear financial milestones.
– Defined end date.
You speak to a small group, but for them you are not another coach. You are the person for their specific transition.
From Generic Content to a Narrow Signal
Red ocean: A business blog that publishes broad marketing tips for everyone.
Blue ocean version:
– Audience: Bootstrapped B2B founders.
– Topic: Only long-term, compounding acquisition channels, no trends.
– Format: Deep case studies from real founders with real numbers.
Eliminate:
– Top 10 style posts.
– Trend chasing.
– Generic “how to start” content.
Raise:
– Depth.
– Specific data.
– Founder perspective.
Readers do not compare you to generic blogs. They file you differently in their minds.
Making Blue Ocean Thinking a Habit
You do not need to turn this into a yearly “big strategy day.” You can bake it into how you think.
Ask Better Questions Regularly
Every quarter, ask yourself:
– Who am I really serving now?
– Which clients are easiest and most profitable?
– What do they complain about in my category?
– What parts of my offer feel heavy or pointless?
Then revisit:
– What can I eliminate?
– What can I reduce?
– What can I raise?
– What can I create?
Over time, your value curve shifts. Your space becomes clearer.
Stay Close to Real Conversations
Many blue ocean insights hide in unscripted comments:
– “I hate how every provider in this space…”
– “I wish someone would just…”
– “I keep putting this off because…”
When you hear patterns:
– Write exact phrases down.
– Use them in your positioning.
– Build small experiments around them.
Your goal is not a perfect strategic model. Your goal is a business and a life that feel less like constant comparison contests and more like your own path.
And that, in practice, is what finding a “blue ocean” really is: not magic, not theory, but a series of choices to serve a specific group differently, on your own terms, in a space most people are still ignoring.