The only way to beat the competition is to stop trying to beat the competition! Imagine the health care market universe composed of two sorts of oceans, red oceans and blue oceans. Red oceans represent all the health care industries in existence today. Blue oceans denote all the health care industries not in existence today, the unknown market space.
In the red oceans, industry boundaries are defined and accepted and the competitive rules of the game are known. Here health care companies try to outperform their rivals to grab a greater share of existing demand. As the market space gets crowded, prospects for profits and growth are reduced and cut-throat competition turns the red ocean bloody.
Blue oceans, in contrast, are defined by untapped market space, demand creation and the opportunity for highly profitable growth. The right strategic move is the key for explaining the creation of blue oceans and sustained high performance. A ‘strategic move’ is the set of managerial actions and decisions involved in making a major market.