Blue Ocean

What does 'Blue Ocean' mean

Blue ocean is a slang term for the uncontested market space for an unknown industry or innovation. Coined by professors W. Chan Kim and Renee Mauborgne in their book "Blue Ocean Strategy: How to Create Uncontested Market Space and the Make Competition Irrelevant" (2005), blue oceans are associated with high potential profits.

BREAKING DOWN 'Blue Ocean'

In an established industry, companies compete with each other for every piece of available market share. The competition is often so intense that some firms cannot sustain themselves and stop operating. This type of industry describes a red ocean, representing saturated market share, bloodied by competition.

To avoid costly competition, firms can innovate or expand in the hope of finding a blue ocean. A blue ocean exists where no firms currently operate, leaving the company to expand without competition.

RELATED TERMS
  1. Boil The Ocean

    To undertake an impossible task or project or to make a task ...
  2. Blue Chip

    A nationally recognized, well-established and financially sound ...
  3. Ocean Bill Of Lading

    A document required for the transportation of goods overseas. ...
  4. Blue List

    A daily digest of municipal and corporate bond offerings, market ...
  5. Blue Chip Indicator

    A formal gauge or measure of the performance of a selected group ...
  6. Blue Sheets

    Requests for information sent out by the Securities and Exchange ...
Related Articles
  1. Stock Analysis

    Oceaneering Is A Great Business, But How Much Are You Willing To Pay?

    Oceaneering is a great way to play the growth in offshore energy, but the market already expects big things.
  2. Stock Analysis

    Oceaneering International Shuffles Its "C" Level (OII)

    Big changes were afoot on the executive deck at Oceaneering International (NYSE: OII) last week. The biggest name in underwater remotely operated vehicles (ROVs) announced it is promoting current ...
  3. Stock Analysis

    This Blue Chip Is Up 16% Since January -- Is It Still A Buy?

  4. Investing

    What does "Blue Chip" Mean?

    Describing a business as “blue chip” comes from the game of poker, where blue chips are the most valuable.
  5. Investing News

    Can Amazon Sink Ocean Freight Competitors?

    The only question is, how long will it take Amazon to put the ocean freight market in a tailspin.
  6. Investing

    Bezos' Blue Origin to Start Space Tours in 2018

    Amazon founder provided a peek inside fifteen-year-old under-the-wraps space venture Blue Origin to select reporters.
  7. Stock Analysis

    A Hot Sector?

    Another example of a sector that "falls between the cracks" - elearning.
  8. Mutual Funds & ETFs

    FBGRX: Fidelity Blue Chip Fund Top 5 Holdings Analysis

    Learn about the Fidelity Blue Chip Growth mutual fund, its portfolio makeup, and read a complete analysis of the fund's top five holdings.
  9. Mutual Funds & ETFs

    FBGRX: Overview of Fidelity Blue Chip Growth Fund

    Learn about the Fidelity Blue Chip Growth Fund in this fund overview including information on its investment performance and portfolio managers.
  10. Professionals

    Series 66 Exam Prep: The Uniform Securities Act

    Before you take the series 66, you need to understand the Uniform Securities Act and the Blue Sky Laws.
RELATED FAQS
  1. Should I care about the book value per common share when dealing with a blue chip ...

    See why shareholders of any listed company, even owners of blue chip stock, should care about what the book value per common ... Read Answer >>
  2. What is the difference between CI (competitive intelligence) and competitive analysis?

    Understand the difference between competitive intelligence and competitive analysis. Learn why a company conducts both types ... Read Answer >>
  3. What's the difference between a bill of lading and an ocean bill of lading?

    Understand the difference between a bill of lading and an ocean bill of lading. Both documents serve as receipts for freight ... Read Answer >>
  4. How do I start investing in blue chip stocks?

    I've been having an interest to start investing in blue chip stocks, and possibly in a drip account. I need help to know ... Read Answer >>
  5. What factors influence competition in microeconomics?

    Find out what influences competition in microeconomics and how perfect competition, monopoly and oligopoly vary in their ... Read Answer >>
  6. Is there a mutual fund that specifically includes blue chip stocks?

    I would like to invest in stocks that provide diversification, since I am a beginner. I would like to start off with at least ... Read Answer >>
Hot Definitions
  1. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  2. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  3. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  4. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  5. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  6. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
Trading Center