Blue oceans are markets that haven't been created yet. They are lucrative business opportunities.
Value innovation is when companies create a huge increase in value while simultaneously reducing costs.
Value innovation creates new offerings that are favorable to both the business and its customers.
Value innovation makes competitors irrelevant.
Value innovation is an important part of creating blue oceans. To do so successfully, avoid:
Value innovation also disrupts the value-cost trade-off - the idea that costs and value change in tandem.
The value-cost trade-off - which plagues competitive red ocean markets - is based on incremental changes: