In the business world, a Blue Sea is a space/market easier to navigate as it’s not crowded like the classic red ocean. However, the Blue Ocean focuses on creating uncontested markets. The Blue Sea strategy looks at zooming as much as possible within existing markets to find your minimum viable audience.
Blue Sea vs. Blue Ocean
The core premise of a Blue Ocean Strategy is to break down the trade off between value and cost, by creating uncontested markets.
This is all very interesting, and we all would like to create those incredible uncontested markets where we can redefine the whole business playbook.
However, in a few cases, companies manage to transition toward uncontested markets. And even when that happens, followers come quickly, to steal as much market share as possible.
Thus a blue ocean is oftentimes, more the result of a bloody war, rather than space exploration.
A Blue Sea strategy instead tries to redefine value, not for a whole market, but only for a small group of people craving for that value to be provided.
Let’s see what really makes up a Blue Sea.
Zooming in to find your MVA
Where Blue Oceans create an uncontested market by looking beyond the boundaries of existing ones (it zooms way out to understand how a whole market might look different a decade from now).
The Blue Sea Strategy instead looks at existing markets, and it zooms in as much as possible to find a minimum viable audience.

Redefine value by going from “a product for everyone” to a “product made for a few”
In a Blue Ocean Strategy, competition is made irrelevant by changing the business playground.
As a whole new market is created, the Blue Ocean player will be able to capture most of that market opportunity.
In a Blue Sea Strategy, competition is made irrelevant by redefining value for the minimum viable audience, that is not satisfied in full by existing products available on the market.
You go where existing players can’t, won’t, or are not able to go.
In a Blue Sea, there is space for all
In a Blue Ocean Strategy, the new demand is captured by being the first mover or among the first movers in a new market.
In a Blue Sea Strategy, you can be very late and still build a valuable business.
That’s because the Blue Sea player will redefine value by going where the existing, established players can’t, perhaps because it would be too expensive for them or not scalable at all.
An audience is so small that it is not threatening to existing players, and yet fascinating to get the business off the ground.
In a Blue Sea, price sensitivity is flipped upside-down
Where the Blue Ocean Strategy breaks the cost-value trade-off (offer more at a lower cost).
In a Blue Sea Scenario, your smallest viable audience will be so keen to support your business, to be happy to pay you a premium price for your product, as soon as you keep it tailored to them.
Look at the present and change it for a few
A Blue Ocean Strategy looks at the future, envisions it, and builds it.
A Blue Sea Strategy, instead, looks at the past, and it redefines it for the smallest audience that didn’t like how that future turned out to be.
Is the Blue Sea strategy only for niche players?
Not really.
A Blue Sea strategy does start from a minimum viable audience, but it creates options to scale. Those options can be exercised from time to time.
However, when a company scales up, it might bring to the end of value for its minimum viable audience.
Therefore, as in a classic Crossing The Chasm scenario, the Blue Sea player will need to think through this option.
Key Insights
- Zooming in to Find Minimum Viable Audience (MVA): Unlike Blue Ocean Strategy, which looks at creating uncontested markets by expanding beyond existing boundaries, the Blue Sea Strategy focuses on finding the smallest possible audience that has unmet needs within existing markets.
- Redefining Value for a Small Group: The Blue Sea Strategy aims to redefine value for this minimum viable audience rather than the entire market. It targets specific individuals or groups who are craving a unique value proposition not adequately provided by existing players.
- Competition Irrelevance through Unique Value: Instead of capturing new demand by being the first mover in a new market (as in Blue Ocean), the Blue Sea player makes competition irrelevant by offering unique value to the minimum viable audience, which existing players can’t or won’t provide.
- Late Entry Can Still Succeed: In a Blue Sea Strategy, you can enter the market late and still succeed because the focus is on catering to a small, non-threatening audience with distinct needs and preferences.
- Price Sensitivity is Flipped: The minimum viable audience in a Blue Sea is so eager to support your business that they are willing to pay a premium price for a product tailored to their specific needs.
- Looking at the Past and Redefining: While Blue Ocean Strategy envisions and builds the future, the Blue Sea Strategy looks at the past and redefines it for the smallest audience that didn’t like how the future turned out.
- Potential for Scale: Though the Blue Sea Strategy starts with a minimum viable audience, it allows for options to scale up the business. However, scaling might require careful consideration to avoid compromising value for the original audience.
Case Studies
| Company | Aspect Addressed | Description | Example |
|---|---|---|---|
| Apple | Zooming in to Find MVA | Apple focuses on creating products and experiences for a specific audience that values design, simplicity, and premium quality. | Apple’s emphasis on user experience and design appeals to its minimum viable audience of loyal customers. |
| Tesla | Redefining Value for a Small Group | Tesla caters to electric vehicle enthusiasts and environmentally conscious consumers with high-performance electric cars. | Tesla’s electric vehicles target a specific audience concerned about sustainability and innovation. |
| Airbnb | Competition Irrelevance through Unique Value | Airbnb redefined the lodging industry by offering unique accommodations and experiences tailored to individual preferences. | Airbnb made competition irrelevant by addressing the unmet needs of travelers seeking distinctive stays. |
| Netflix | Late Entry Can Still Succeed | Netflix entered the streaming market later than some competitors but differentiated itself by producing original content. | Netflix’s success came from catering to a global audience’s demand for personalized content choices. |
| Peloton | Price Sensitivity is Flipped | Peloton offers premium home fitness equipment and content subscriptions. Its audience is willing to pay a premium for convenience and quality. | Peloton’s pricing model capitalizes on a dedicated customer base willing to invest in fitness. |
| Warby Parker | Looking at the Past and Redefining | Warby Parker reimagined the eyewear industry by offering affordable, stylish glasses online, disrupting traditional retail models. | Warby Parker’s approach addressed dissatisfaction with high prices and limited options in eyewear. |
| Spotify | Zooming in to Find MVA | Spotify initially targeted music enthusiasts by offering a vast music library with free and premium tiers. | Spotify focused on music lovers and tailored its streaming service to cater to their diverse music preferences. |
| Dollar Shave Club | Redefining Value for a Small Group | Dollar Shave Club disrupted the shaving industry by offering affordable, high-quality razors and grooming products through a subscription model. | Dollar Shave Club’s value proposition appealed to budget-conscious consumers seeking convenience. |
| Blue Apron | Competition Irrelevance through Unique Value | Blue Apron created a meal kit delivery service that provides fresh ingredients and recipes, appealing to consumers seeking convenient cooking solutions. | Blue Apron addressed the unmet needs of busy individuals who wanted to cook at home without the hassle of grocery shopping. |
| Red Bull | Late Entry Can Still Succeed | Red Bull entered the energy drink market relatively late but positioned itself as a lifestyle brand, sponsoring extreme sports and events. | Red Bull’s marketing strategy and unique brand identity attracted consumers looking for energy and excitement. |
| Fitbit | Price Sensitivity is Flipped | Fitbit introduced wearable fitness trackers and positioned them as affordable health and fitness companions. | Fitbit’s pricing made fitness tracking accessible to a broader audience, appealing to those interested in monitoring their health. |
| Spanx | Looking at the Past and Redefining | Spanx revolutionized the shapewear industry by offering comfortable, body-enhancing undergarments, challenging traditional designs. | Spanx addressed the discomfort associated with traditional shapewear, making it appealing to women seeking both style and comfort. |
| Toms | Zooming in to Find MVA | Toms adopted a “One for One” business model, donating a pair of shoes for every pair sold, attracting socially conscious consumers. | Toms’ focus on social impact resonated with consumers who wanted to contribute to a charitable cause with their purchases. |
| Slack | Redefining Value for a Small Group | Slack transformed workplace communication with its team collaboration platform, catering to businesses seeking efficient communication tools. | Slack’s platform improved workplace productivity, making it valuable to organizations seeking streamlined communication. |
| Beyond Meat | Competition Irrelevance through Unique Value | Beyond Meat introduced plant-based meat alternatives, appealing to environmentally conscious consumers and those seeking plant-based diets. | Beyond Meat’s products offered a unique and sustainable alternative to traditional meat. |
| Lululemon | Late Entry Can Still Succeed | Lululemon entered the athletic apparel market later but created a premium brand with high-quality activewear, targeting fitness enthusiasts. | Lululemon’s focus on quality and innovation attracted a dedicated customer base in the competitive athleisure industry. |
| HelloFresh | Price Sensitivity is Flipped | HelloFresh entered the meal kit delivery market by offering affordable and convenient meal solutions, making cooking at home accessible. | HelloFresh’s pricing and convenience attracted customers seeking an alternative to dining out. |
| Patagonia | Looking at the Past and Redefining | Patagonia redefined outdoor apparel by emphasizing sustainability, encouraging consumers to buy fewer high-quality items. | Patagonia’s commitment to environmental responsibility resonated with environmentally conscious consumers. |
| Airbnb | Zooming in to Find MVA | Airbnb introduced Airbnb Experiences, offering unique activities led by locals, attracting travelers seeking authentic and immersive experiences. | Airbnb expanded its offerings to cater to travelers interested in personalized and cultural experiences. |
| SpaceX | Redefining Value for a Small Group | SpaceX focuses on space exploration and satellite deployment, targeting government contracts, commercial launches, and space enthusiasts. | SpaceX’s mission appeals to government agencies, companies, and individuals interested in space-related services. |
| Zara | Competition Irrelevance through Unique Value | Zara revolutionized fast fashion by optimizing its supply chain, offering affordable, trendy clothing, and reducing lead times. | Zara differentiated itself by rapidly delivering the latest fashion trends, attracting fashion-conscious consumers. |
| Slack | Late Entry Can Still Succeed | Slack entered the team collaboration market later but gained traction by providing a user-friendly and integrative platform. | Slack’s user-centric approach attracted businesses looking for efficient and flexible communication tools. |
| Snapchat | Price Sensitivity is Flipped | Snapchat introduced ephemeral messaging and content sharing, targeting younger users seeking a more private and authentic social media experience. | Snapchat’s unique features and privacy-focused approach appealed to a younger audience. |
| HelloFresh | Looking at the Past and Redefining | HelloFresh expanded its offerings to include wine delivery, offering a complete meal experience, targeting customers seeking convenient dining solutions. | HelloFresh extended its services to address the evolving preferences of its customer base. |
| Beyond Meat | Zooming in to Find MVA | Beyond Meat launched plant-based breakfast sausages, catering to consumers seeking meat alternatives for breakfast. | Beyond Meat’s product expansion addressed a specific need within its existing market by offering breakfast options. |
| Adobe | Redefining Value for a Small Group | Adobe introduced the Creative Cloud subscription model, providing software tools and services for creative professionals and enthusiasts. | Adobe’s subscription-based approach offered greater accessibility to its software, benefiting creative users. |
| Amazon Web Services (AWS) | Competition Irrelevance through Unique Value | AWS pioneered cloud computing services, targeting businesses seeking scalable and cost-effective cloud infrastructure solutions. | AWS’s early entry and comprehensive cloud services made it indispensable for businesses seeking cloud solutions. |
| Slack | Late Entry Can Still Succeed | Slack entered the team collaboration market later but gained traction by providing a user-friendly and integrative platform. | Slack’s user-centric approach attracted businesses looking for efficient and flexible communication tools. |
| Zoom Video Communications | Price Sensitivity is Flipped | Zoom offered a reliable and affordable video conferencing platform, attracting businesses and individuals seeking efficient remote communication. | Zoom’s competitive pricing and user-friendly interface made it the preferred choice for remote meetings and collaboration. |
| Spotify | Looking at the Past and Redefining | Spotify expanded its services to include podcasts, catering to users looking for diverse audio content and creators seeking broader audiences. | Spotify’s podcast offerings addressed the evolving preferences of its user base and content creators. |
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