Blue Ocean Strategy
Compete by changing the basis of competition, not outspending rivals.
Explanation
Business professors W. Chan Kim and Renée Mauborgne identified two types of competitive spaces. Red oceans are existing markets where companies fight over the same customers using the same competitive factors, leading to price wars. Blue oceans are new market spaces where you change the rules of competition, making existing competitors irrelevant.
Real-World Example
Cirque du Soleil: Eliminated animals and star performers (costly), Reduced thrills and danger, Raised artistic quality and venue, Created theatrical experience. Result: New market between circus and theater. Higher prices, lower costs.
How to Apply
Strategy Canvas: List industry's competitive factors. Plot your offering vs competitors. Now redesign: What can you eliminate that industry assumes essential? What can you reduce below standard? What should you raise above standard? What can you create that's never been offered?