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While red oceans represent all the industries in existence today ? the known markets, blue oceans denote all the industries not in existence. Red ocean markets are defined with clear boundaries and well understood competitive rules. Blue oceans provide another scenario. They are untainted by competition. In blue oceans, the demand usually is created rather than fought over.
There are two ways to create blue oceans. Companies can give rise to completely new industries with the example of eBay in the online auction. Or a blue ocean is created from within a red ocean when a company alters the boundaries of an existing industry...
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