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In the book, the authors discuss their studies of 150 strategic moves spanning more than a 100 years and 30 industries. They explain how the companies behind the Ford Model T, Cirque du Soleil, and the iPod won because of how they entered blue-ocean markets instead of red-ocean markets. The sea of other competitors with similar products is known as a red ocean. Red oceans are full of sharks that compete for the same customer by offering lower prices and eventually turning a product into a commodity. In contrast, a blue ocean is uncontested territory; it is free for the taking. In the corporate world, the impulse to compete by destroying your rivals is rooted in military strategy. In war, the fight typically plays out over a specific terrain. The battle gets bloody when one side wants what the other side has — whether it be oil, land, shelf space, or eyeballs. In a blue ocean, the opportunity is not constrained by traditional boundaries. It’s about breaking a few rules that aren’t quite rules yet or even inventing your own game that creates an uncontested new marketplace and space for users to roam. When we transpose Blue Ocean Strategy to the world of digital products, we must admit that there are bigger opportunities in unknown market spaces. A perfect example of a company that took advantage of a blue-ocean market is Airbnb. Airbnb is a “community marketplace” for people to list, discover, and book sublets of practically anything from a tree house in Los Angeles to a castle in France. What’s amazing about this is that its value proposition has completely [19] disrupted the travel and housing industry (see Figure 2-6). Its value proposition is so addictive that as soon as customers try it, it’s hard to go back to the old way of booking a place to stay or subletting a property. Figure 2-6. Airbnb in the news Airbnb achieves this value innovation by coupling a killer UX design with a tantalizing value proposition. And, as I mentioned earlier, true value innovation occurs when the UX and business model intersect. In this case, they intersected

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