Blue Ocean Strategy is a business approach that encourages companies to create new market spaces, or "blue oceans," rather than competing in saturated markets, or "red oceans." By focusing on innovation and value creation, businesses can differentiate themselves and attract new customers, leading to less competition and higher profitability. This strategy involves identifying unmet customer needs and developing unique products or services that stand out. Companies employing Blue Ocean Strategy aim to make the competition irrelevant by redefining industry boundaries and creating demand in unexplored markets, ultimately fostering sustainable growth and success.