What characterizes blue ocean strategy compared to red ocean?

• A. Blue ocean seeks uncontested market space via value innovation; red ocean competes in existing market with direct competition.
• B. Red ocean seeks uncontested market space via value innovation.
• C. Blue ocean focuses on price competition in existing markets.
• D. Blue ocean ignores customer value to minimize costs.

Answer: (A)

Blue ocean strategy is about creating new, uncontested market space by offering value innovation—delivering greater value to customers while simultaneously reducing costs, so demand grows in a space where competition is irrelevant. That contrast with red ocean, where firms fight it out in existing markets, trying to outperform rivals through differentiation or cost leadership. The chosen statement captures this core distinction: blue ocean seeks uncontested market space via value innovation, while red ocean competes in an existing market with direct competition. The other options mix up the ideas: red ocean isn’t about uncontested space; blue ocean isn’t centered on price competition within current markets; and blue ocean doesn’t ignore customer value in pursuit of cost-cutting.