Red Ocean markets are crowded, whereas Blue Oceans are untapped from "summary" of Blue Ocean Strategy, Expanded Edition by W. Chan Kim,Renée A. Mauborgne
Red oceans are known for their cutthroat competition, where companies fight for a share of existing market space. The market boundaries are defined, and the rules of the game are well understood by all players. As a result, competition becomes fierce, leading to a bloody "red ocean" of rivals fighting for the same customers and trying to outperform one another. In such markets, companies often engage in price wars, diminishing their profit margins and eroding their value proposition to customers. On the other hand, blue oceans represent markets that are unexplored and untapped. These are areas where demand is created rather than fought over. In blue oceans, companies have the opportunity to create new market space by offering innovative products or services that open up new customer segments. By focusing on differentiation and value innovation, companies ...
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