It's the idea of creating and capturing uncontested market space, thereby making the competition irrelevant.
Most of the companies today operate in an intense competition zone where each one of them is trying to maximize their market share. With the crowded market space profits and growth are reduced. Such a situation where the company operates in a saturated market is known as “Red ocean” where there is less opportunity for growth.
The Blue Ocean Strategy represents the simultaneous pursuit of high product differentiation and low cost, thereby making competition irrelevant. Creating a blue ocean is difficult and often requires the company to innovate.
Some prominent examples of blue ocean strategic moves from different industries and sectors include :
With iTunes Apple unlocked a new market space in digital music.
Canon’s move, which created the personal desktop copier industry.
Ford Model T made the automobile accessible to the mass of the market.