Red Ocean

A Red Ocean refers to a competitive market where many companies offer similar products or services, competing aggressively for the same customers. In this environment, companies often focus on outperforming rivals, frequently leading to price wars and shrinking profit margins. The term evokes the image of a "bloody" ocean, symbolizing fierce competition and limited opportunities for growth, as everyone fights for a share of the existing demand rather than creating new markets. Businesses in a Red Ocean need strategic differentiation or cost leadership to survive and succeed amid intense rivalry.