Blue Ocean Strategy: Grow Your Business Without Having to Compete

The SaaS world is crowded. It's full of smart people building similar things and fighting over the same customers. But what if you didn’t have to fight?

That’s what the blue ocean strategy is all about.

Instead of entering a saturated market (the “red ocean”), blue ocean strategy means creating a new market where there’s no competition. It’s not just about building something first. It’s about seeing what others can’t — and solving user problems in ways no one else thought to.

At Eleken, we’ve worked with SaaS founders who chose the bold route. They avoided the red ocean bloodbath and found calm waters where innovation could thrive. In this article, we’ll break down what blue ocean strategy really is, how to apply it to your product, and share real-world blue ocean strategy examples that show how companies got rid of competition entirely.

Let’s dive in.

What is a blue ocean strategy?

Blue ocean strategy is a business approach that focuses on creating new markets rather than fighting over existing ones. Instead of trying to outdo your competitors in a crowded space, you shift the playing field entirely.

It starts with customer insight. Not the kind you get from feature requests or satisfaction surveys—but the quiet signals: workarounds, frustrations, and silent drop-offs. These hidden gaps often point to value people didn’t even know they were missing — until they experience it.

When a company gets this right, it doesn’t just launch a product — it creates a category.

What is blue ocean strategy with example? Uber. Instead of improving the taxi experience, they built something entirely different: ride-hailing at the tap of a button. It wasn’t just more convenient — it redefined urban transportation.

Now that we’ve defined the strategy, let’s look at where it came from and why it’s become essential for companies that want to lead rather than follow.

The book that redefined competition

The term "blue ocean strategy" comes from the groundbreaking book by W. Chan Kim and Renée Mauborgne, first published in 2005. The book became a global bestseller, offering a new way to think about innovation and competition.

Rather than focusing on outperforming rivals, the book argues for a different path: creating entirely new market space where competition becomes irrelevant.

The book introduces several key concepts to help companies build their own blue oceans:

• Value innovation: creating products that are both different and useful
• The ERRC framework: eliminate, reduce, raise, and create
• Strategic canvas: a visual tool to map industry assumptions and spot areas of opportunity

Over the years, Blue Ocean Strategy has become a foundational text in business strategy courses and boardrooms alike. If you’re building a SaaS product or launching a startup, it’s worth reading.

With the core ideas in place, it’s time to understand how these concepts apply in the real world — starting with the difference between red oceans and blue oceans.

Red oceans vs blue oceans

Here’s the core metaphor at the heart of the blue ocean strategy book: the business world is divided into two types of markets — red oceans and blue oceans.

Red oceans

These are existing markets where everyone competes on the same things. Think pricing, features, speed, brand. It's a zero-sum game. Gains for one company usually mean losses for another. It's crowded, cutthroat, and often unsustainable.

Blue oceans

These are unexplored markets where you make the rules. Instead of competing for existing demand, you create new demand. Rather than slicing up a fixed pie, you bake a new one.

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Red oceans are about competition. Blue oceans are about creation.

When you think about your product strategy, ask yourself: Are we in a red ocean, fighting for attention? Or are we building something no one else has seen before?

So how do you move from a crowded, competitive market into clear blue water? It starts with changing the way you think.

How to shift into blue ocean thinking

If you're stuck in a red ocean — competing on price, speed, or minor features — it might feel like there's no way out. But the shift into a blue ocean begins with rethinking how you define value and opportunity.

Here’s how to get into the right mindset:

1. Focus on customer pain, not competitors
   Stop obsessing over what your rivals are doing. Look instead at what frustrates your users. What’s clunky, confusing, or inefficient about existing solutions? Those are your blue ocean signals.
   
   
2. Study non-customers
   People who aren’t using your product—or anyone’s—often reveal gaps in the market. They’re not opting out because they’re stubborn. They’re opting out because what they need doesn’t exist yet.
   
   
3. Map behavior, not just features
   Look at where users get stuck, give up, or turn to hacks like spreadsheets. These friction points are goldmines for blue ocean insights.
   
   
4. Use frameworks like ERRC — but don’t start with it
   Frameworks are tools, not starting points. Begin with empathy and observation. Then structure your ideas using tools like the ERRC model.

The shift isn’t about chasing novelty for its own sake — it’s about creating new value where none existed, and making old competitors irrelevant.

Once you’ve adopted the mindset, you’ll need a practical framework to guide your next move. That’s where ERRC comes in.

How to apply the blue ocean strategy: a practical framework

So, you’ve spotted a problem worth solving. The market feels untouched, the user need is clear. Now what?

This is where the ERRC framework comes in. It’s the core tool from Blue Ocean Strategy that helps you build a product users didn’t know they needed — but instantly recognize as valuable.

ERRC stands for:

• Eliminate: What factors that the industry takes for granted should be eliminated?
  
• Reduce: What factors should be reduced well below the industry standard?
  
• Raise: What factors should be raised well above the industry standard?
• Create: What factors should be created that the industry has never offered?

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Let’s walk through how you can apply this in practice, step-by-step.

1. Analyze your market (without obsessing over competitors)

Start by zooming out. Look at the entire industry you’re in. What are the assumptions everyone seems to be working with? What do all the products include just because that’s “how it’s always done”? These are potential candidates for elimination or reduction.

Don’t waste time on competitive benchmarking for its own sake. Focus on where users are still unsatisfied, underserved, or just plain tired.

Example: Traditional enterprise CRMs were bloated and expensive. Basecamp built something radically simpler for small teams, eliminating complexity while raising ease-of-use.

2. Identify real user pains

You’re not just solving a problem — you’re reshaping the solution space. To do that, dig into what your target users are actually trying to get done. What frustrates them about current tools or workflows? What are they compromising on?

Keep asking “Why?” until you hit something deeper than just features. That’s where your innovation lives.

3. Apply the ERRC lens

With that understanding in hand, start filling out the ERRC grid:

A good blue ocean strategy almost always includes bold eliminations and surprising creations. Don’t be afraid to rethink the basics.

4. Prototype, test, refine

Ideas are great, but execution wins.

Start with a lean prototype. Put it in front of real users. See what clicks and what falls flat. Blue ocean products usually challenge expectations, so you’ll need to help users understand the new value you’re offering.

Quick iterations are key. Your first version might not hit the mark, but it should give you signal. Double down on what resonates.

Now that you know how to apply the strategy, let’s explore real-life examples of companies that used it to dominate, or even invent, their markets.

Blue ocean strategy examples (and what you can learn from them)

Sometimes the best way to understand a strategy is to see it in action. Let’s break down some of the most iconic companies that use blue ocean strategy  — not just to admire them, but to reverse-engineer how they created new markets and made competition irrelevant.

1. Netflix: a blue ocean strategy example in entertainment

Before Netflix became the streaming powerhouse we know today, it was just one of many DVD rental companies. Then it pivoted.

By moving into streaming, Netflix eliminated the need for physical rentals (and late fees), reduced effort for users (no more store visits), raised accessibility (watch from anywhere), and created an entirely new way to engage with entertainment. This wasn’t just a better Blockbuster. It was a whole new category.

2. Airbnb: a blue ocean company example that reshaped travel

Before Airbnb, lodging meant hotels. Airbnb asked: what if people could rent out their homes?

The platform eliminated the monopoly of hotel chains, reduced travel costs, raised variety and local authenticity, and created a global network of hosts. It opened up a new world of travel — more personal, more flexible, and way more interesting.

3. Apple iPhone: the ultimate blue ocean example in tech

Apple didn’t invent the smartphone. It changed the rules.

The iPhone eliminated the stylus and physical buttons, reduced complexity, raised UX standards, and created a new interaction model with multi-touch and the App Store.

Apple followed the blue ocean strategy — they didn’t compete with phones. They redefined what a phone was.

Take a look at the image below to see how clearly it maps to the eliminate–reduce–raise–create framework:

The chart shows how the iPhone diverged dramatically from both feature phones and traditional smartphones at the time. It didn’t compete on the same factors — it rewrote them.

4. Cirque du Soleil: a circus with no animals (and higher ticket prices)

The circus industry was in decline, dominated by animal acts and cheap thrills. Cirque du Soleil took a completely different path.

It eliminated animals and low-budget slapstick, reduced dependency on child-focused acts, raised artistic quality and storytelling, and created a whole new form of live entertainment. It wasn’t a circus. It wasn’t theater. It was both — and something entirely new.

5. Marvel Studios: building a cinematic universe

Superhero movies existed before Marvel, but they were standalone hits or misses. Marvel used blue ocean thinking to create the Marvel Cinematic Universe (MCU) — a cohesive, interconnected franchise spanning films, TV, and merch.

It eliminated fragmented storytelling, reduced risk by spreading characters across arcs, raised emotional investment through continuity, and created a global fan ecosystem. Marvel didn’t just make hits — they made a new form of long-game storytelling in film.

6. iTunes: turning piracy into profit

In the early 2000s, music piracy was everywhere. Instead of fighting it, Apple asked: what if buying music was easier than stealing it?

iTunes eliminated the need for physical CDs and clunky MP3 transfers, reduced friction in digital buying, raised convenience and legality, and created a trusted platform for downloading music. Apple didn’t fight Napster—they reimagined music ownership for the digital age.

7. Meta (formerly Facebook): from social network to virtual world

Meta’s pivot toward the metaverse may still be playing out, but it’s a clear attempt at blue ocean strategy.

Rather than compete directly with other social platforms, Meta is investing in a future where users connect through avatars, immersive environments, and spatial computing. It’s aiming to eliminate screen-based interaction, reduce passive scrolling, raise presence and co-creation — and create an entirely new mode of digital connection.

8. Yellow Tail: a blue ocean company example in a saturated industry

The traditional wine industry was crowded with complex labels, intimidating tasting notes, and a snobby vibe. Yellow Tail used blue ocean strategy to do the opposite.

It eliminated the jargon, reduced the overwhelming variety, raised approachability, and created a playful brand that spoke to casual drinkers. Yellow Tail didn’t win over wine connoisseurs — it unlocked demand from people who felt excluded from wine culture entirely.

9. Southwest Airlines: blue ocean strategy in budget air travel

While most airlines competed on luxury, routes, or loyalty programs, Southwest Airlines carved out a blue ocean by focusing on simplicity and price.

It eliminated in-flight meals and complex seat classes, reduced costs and turnaround times, raised reliability, and created a no-frills flying experience perfect for short-haul, cost-conscious travelers. Southwest didn’t improve air travel — it made it radically more accessible.

10. Ford Model T: a classic example of blue ocean strategy in manufacturing

Before the Model T, cars were luxury items for the rich. Ford didn’t try to outdo luxury automakers—he used blue ocean strategy to create an entirely new market: affordable vehicles for everyday people.

By standardizing the design and introducing assembly-line production, Ford slashed manufacturing costs and made car ownership accessible to farmers, workers, and families. The famous “any color so long as it’s black” approach was part of that efficiency.

The result? A new mass market for automobiles. The Model T sold over 15 million units and transformed transportation, proving that value innovation could reshape an entire industry.

But blue ocean strategy isn’t just for global giants. At Eleken, we’ve helped startups carve out uncontested markets of their own.

Designing blue ocean products: Eleken’s experience

At Eleken, we specialize in working with SaaS founders who aren’t afraid to swim away from crowded markets. Here’s how we’ve helped them design their own blue ocean products — from climate tools to no-code platforms.

Let’s walk through two projects where we helped design products for uncontested market spaces, aka, true blue oceans.

Handprinter: blue ocean strategy for positive climate action

Most sustainability apps focus on carbon footprints—tracking how much harm you cause and how to offset it. Handprinter took a blue ocean strategy approach by flipping the narrative: instead of measuring damage, it helps users track the good they do for the planet.

There were no direct competitors and no UX benchmarks for this kind of product. Eleken designed the experience from the ground up, collaborating with eco-experts, mapping a new type of user journey, and building an interface that focused on encouragement and progress.

By creating a tool that reframed climate action as something measurable and uplifting, Handprinter defined a new market and proved that blue ocean thinking can drive both purpose and traction.

Faithful: building a platform for online preaching

When the pandemic hit, spiritual communities were stuck with tools like Zoom, built for business, not worship. Faithful saw a blue ocean opportunity: create the first platform designed specifically for online preaching.

With no UX patterns to follow and just two months to launch, Eleken designed the entire experience from scratch. We focused on calm, clear flows so preachers could focus on their message, not the tech.

The result? A new digital space for spiritual connection, with 10,000+ downloads and glowing reviews. Faithful didn’t compete with video tools — it redefined how worship happens online.

Habstash: using blue ocean strategy to demystify home ownership

Most financial tools help people track spending or invest — but none show how to actually buy a home. Habstash took a Blue Ocean approach, creating a product for first-time buyers that merges financial planning, real estate search, and personalized savings goals into one seamless experience.

With Eleken, Habstash went from clunky prototype to a smart MVP that feels like a home-buying coach. Features like partner-saving flows, investment simulators, and affordability maps gave users clarity — not confusion.

By turning a daunting process into a guided journey, Habstash didn’t just compete with budgeting apps — it redefined what it means to plan for your first home.

Datawisp: empowering the data curious

In a world where data tools are built for engineers, Datawisp created a new market: visual, no-code data analysis for everyone else. Like Webflow did for websites, Datawisp removed the barrier of code, opening up insights to marketers, PMs, and analysts without technical skills.

Eleken’s redesign transformed the product from a clunky prototype into an intuitive, investor-ready platform. We rebuilt flows, clarified complex visuals, and delivered a scalable design system that matched the innovation behind the product.

By turning spreadsheets and SQL queries into drag-and-drop cards, Datawisp didn’t compete with BI tools — it redefined who gets to use them.

Populate: a blue ocean strategy to end doctor burnout

Populate didn’t try to compete with outdated EHR systems — it made them irrelevant. By focusing on clinician well-being, the app created a Blue Ocean in healthcare tech: clinical software designed to save time, not just store data.

With AI-powered templates, speech-to-text notes, and zero-keyboard workflows, Eleken helped Populate turn complex documentation into a few clicks or voice commands. The result isn’t just faster — it’s humane.

Populate redefined what clinical software should do: protect doctors’ time, not waste it.

Greenventory: blue ocean strategy for climate planning

Instead of competing with legacy energy software, Greenventory created an entirely new category: visual, data-driven planning tools for carbon-free cities. With no direct analogs, their platform helps governments and utilities simulate, place, and manage green energy infrastructure — all from a single, intuitive interface.

Eleken translated complex geospatial data into a seamless UX with progressive map loading, layer toggles, and color-coded assets like solar panels and wind turbines. The result? A tool powerful enough for experts, yet usable by planners without technical training.

By turning energy modeling into a one-click report, Greenventory didn’t improve existing tools — it made them obsolete.

MyInterview: using blue ocean strategy to rehumanize hiring

While most hiring tools automate recruiter workflows, myInterview reimagined the process entirely — by eliminating the recruiter. Using AI to guide candidates through personalized, fully-automated interview flows, the platform unlocked a new market of self-service hiring that feels human without human intervention.

Eleken’s redesign focused on turning drop-offs into completions: we rebuilt confusing input patterns, added AI-generated questions based on job data, and crafted a brand-consistent experience from first click to final answer. 

myInterview didn’t just compete in the video interview space — it stepped into a Blue Ocean, where hiring could happen without recruiters, but still feel personal.

These examples show that blue ocean thinking works at every level — from global brands to emerging startups. So why does it matter now more than ever?

To sum up: why blue ocean strategy still matters

The blue ocean isn’t a myth. It’s just hard to spot when everyone around you is focused on fighting the same old battles.

Blue ocean strategy isn’t about being the first. It’s about being different in a way that matters. It’s about offering value that feels so right, people wonder why it didn’t exist already.

Whether it’s Netflix changing how we watch, Airbnb changing how we travel, or a startup changing how we think about the environment — these aren’t just business moves. They’re perspective shifts. And they all started with one question: What are people missing that they shouldn’t have to?

At Eleken, we help SaaS founders answer that question. Then we design the product that makes the answer real. Our team isn’t just here to make things pretty. We’re here to help you make waves in your industry, your user’s lives, and the market as a whole.