In this 2025 YouTube presentation, Joshua Fraser introduces the Blue Ocean Strategy, a framework that encourages businesses to create uncontested market spaces rather than compete in crowded "red oceans." He explains the strategy’s origins in the 2005 book by W. Chan Kim and Renée Mauborgne, which was based on a study of 150 strategic moves across 30 industries over a century. Fraser defines key concepts such as value innovation, the ERRC (Eliminate‑Reduce‑Raise‑Create) grid, and the importance of focusing on non‑customers. He illustrates the ideas with classic and modern examples: Cirque du Soleil’s reinvention of the circus, and contemporary giants Airbnb, Tesla, and Nintendo’s Wii, each of which built billion‑dollar markets by redefining industry boundaries. Fraser then provides a four‑step, actionable blueprint for applying the strategy—identifying market pain points, reimagining the value curve with the ERRC grid, targeting non‑customers, and testing the new concept. He recommends practical tools (Canva templates, Lucidchart, Google Trends, Statista) and further learning resources (the latest edition of the Blue Ocean Strategy book, Coursera courses, and his Everyday Entrepreneur program). The video ends with a call to action to like, subscribe, and join his course, positioning the strategy as a pathway for entrepreneurs to stop competing and start creating.
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What if you could stop competing and start creating? Imagine a world where your business doesn't just survive, it thrives by making the competition irrelevant. That's the Power of the Blue Ocean Strategy this is one of my favorite books ever written. Today we're diving into how companies like Airbnb, Tesla and Nintendo created uncontested market spaces and how you can apply these principles to your own business. If you're tired of competing in overcrowded markets, this video is for you. By the end of today's lesson, you'll understand what the Blue Ocean Strategy is, learn how companies used it to break free from the competition, and get actionable steps to chart your own Blue Ocean. Plus, I'll share a real world study that proves why innovation beats imitation every single time. The Blue Ocean Strategy was introduced by W. Chan Kim and Renee Malbourne in their groundbreaking book for first published in 2005. The research analyzed over 150 strategic moves across 30 industries over a century to uncover a universal truth. Businesses that dominate their markets don't do by out competing others in the same space. They succeed by creating entirely new market spaces. Blue oceans where competition becomes irrelevant. Think of the Red Ocean as a crowded and bloody battlefield. Companies are stuck fighting over shrinking profits unless undercutting prices and imitating each other's strategies. In contrast, a Blue ocean represents untapped potential. It's the market space that hasn't been defined yet, where innovation and creativity open doors to new demand and profitability. What makes this idea so revolutionary? It shifts the focus from beating competitors to delivering new value in ways that customers didn't even know they wanted. It's not about doing things better, it's about doing things differently. Take Cirque du Soleil, a prime example. Traditional circuses competed on low ticket prices, flashy animal acts and big tents. Cirque didn't try to outdo them. They reimagined what a circus could be. By blending theater, storytelling, live music and stunning acrobatics, they created a premium, adult orientated experience that redefined entertainment and circuses. This new offering allowed them to charge significantly higher ticket prices while eliminating costly elements like animal axe. Cirque du Soleil didn't just win the circus game the they reinvented it. This isn't just about art or entertainment. This principle applies across industries. Whether it's creating a new product, redefining how services are delivered, or changing the customer experience. Blue Ocean strategy gives businesses the framework to stop competing and start creating. It's about unlocking new demand by focusing on value innovation, simultaneously creating greater value for customers while reducing costs. It's a dual focus that makes Blue Ocean strategy both effective and sustainable. There's three different industries you could show here, Uber, Spotify and Zoom. Uber reimagined transportation by blending convenience with technology. Spotify created a new market for music streaming, moving away from ownership to access. And Zoom redefined virtual collaboration with simplicity and user friendly design. Kim and Matt Bourne's research challenges the idea that industries are fixed and and market boundaries are unchangeable. Instead, they argue that innovation and strategic thinking can rewrite the rules of any market. As we'll see in the next section, many of today's most successful companies own their meteoric rise to the Creating the Blue Oceans Moving into Real World Examples of Blue Ocean strategy Airbnb Redefining Travel A combination Airbnb didn't just compete with hotels, they created a new market entirely. By allowing people to rent out their homes, Airbnb tapped into an untapped market segment of travelers looking for unique, affordable and local experiences. Today, it's valued at over $100 billion. Proof that creating a Blue Ocean can pay off Tesla Revolutionized Electric Vehicles Tesla didn't just build electric cards. They made EVs desirable, high performance and aspirational. By focusing on sleek design, cutting edge technology and a powerful brand, Tesla turned what was once a niche market into the future of the automotive industry. The Nintendo Wii. When Nintendo launched the Wii, they didn't try to compete with Sony's PlayStation or Microsoft's Xbox on graphics processing power. Instead, they targeted non gamers, families, seniors and casual players by focusing on simple motion based controls and fun games. This created an entirely new gaming audience and skyrocketed Nintendo's sales. So how do you apply a Blue Ocean strategy in your business? Number one, identify your market's pain points. Start by looking at your industry's red Ocean. What are customers frustrated with? For Airbnb it was the high cost and limited variety of hotels. Find these pain points and you've found your starting point. Step 2 Reimagine the value curve. Map out your industry's key factors price, convenience, features, et cetera and then reimagine them. What can you eliminate, reduce, raise or create. This is called the ERRC grid. Eliminate, reduce, raise or create. And it's a cornerstone to the Blue Ocean strategy. Step number three Focus on non customers. Don't just fight for existing customers. Target the people who aren't buying at all. Nintendo's Wii succeeded because it targeted non gamers. Audience the competition had completely ignored. And step number four Test and validate your new market space before going all in. You have to pilot your idea. Test your Blue Ocean concept with a small group to ensure it resonates and refine it as needed. At the heart of the Blue Ocean strategy is value innovation, offering unprecedented value while cutting costs. Think of Tesla's Gigafactories, which slashed production costs while delivering cutting edge batteries. Use this framework to create something that customers can't resist and and competitors can't replicate. There's a lot of tools online you can use as well. You can check out Canva templates for the ERC grid or a value curve. LucidChart offers many different types of solutions to collaboratively work on your own grids and value curves. Always use Google Trends and Statista to get data, insights and trends. And of course the most important thing you need to do after watching this video is buy the book Blue Ocean Strategy. There's been several revisions written. Now that it's 2024, I would highly recommend the latest version. It's the definitive guide to creating an uncontested market space or Blue Ocean spaces. And there are also courses on Coursera and if you'd like to join the Everyday Entrepreneur, head over to school. Click on the link below and you can come and find a hundred of these lessons within our course. The greatest business lessons that have ever, ever been created and they're shared for free with you in the Everyday Entrepreneur. So hit like and subscribe and let's get started together. Sam.
