A blue ocean is created when a company achieves value innovation that creates value for both the buyer and the company at the same time. Value innovation refers to developing an innovative product or service that provides new and greater benefits to customers at a lower cost. This allows the company to create a new market space and make competition irrelevant by making their offering very appealing to buyers.

2. A blue ocean is created when a company achieves value innovation that creates value simultaneously for both the buyer and the company.