What is the meaning of Blue Ocean Strategy?

Blue Ocean Strategy stands for a product or market with very less or no competition at all. The strategy is focussed on the search for a new business where only a few firms operate and there is no pricing pressure. It can be applied to various sectors or businesses and is not limited to only one business. Most firms carry out their operations under great competition and try every move to gain maximum market share. It is the pricing pressure which poses a grave threat to the operations of the firm. Latter is usually the case under Red Ocean Strategy.

In such a scenario businesses look for new avenues of growth in the same line or even look for new businesses where they can survive without contesting. A Blue Ocean thus is present where is there is a lot of scope for profits and growth. The strategy is often successful in creating new demand and making the competition irrelevant by bringing up a product which is better than the ones present.      E.g. the Apple’s venture into digital music in 2003 with the help of iTunes is one such strategy.