What strategy is suggested for avoiding direct competition with established rivals?

The blue ocean strategy is focused on creating new market spaces or "blue oceans" that are uncontested, thereby avoiding the direct competition inherent in "red oceans" where many companies vie for the same customers. This approach encourages innovation and differentiation, allowing businesses to offer unique products or services that meet unmet needs in the marketplace. By doing so, companies can carve out their own niche, minimize competitive pressure, and achieve sustained profitable growth without directly confronting established rivals.

This strategy is particularly valuable for businesses seeking to escape saturated markets where competition is fierce, and profit margins are slim. Instead of competing on price or features, companies employing a blue ocean strategy aim to create value in ways that are not currently being addressed by competitors. This can lead to a significant advantage, as they can attract new customers and potentially create new demand.

In contrast, the other strategies, like cost leadership, mass customization, and market penetration, inherently involve some level of competition with existing players in the industry, focusing instead on competing within the existing market framework.