A "Red Ocean Strategy" refers to a competitive approach where businesses operate in existing markets, striving to outperform rivals. In this scenario, companies focus on capturing a larger share of the market by improving their products or services, often leading to intense competition. The term "red ocean" symbolizes the bloodshed from fierce rivalry, as companies fight for limited resources and customers. In contrast to a "Blue Ocean Strategy," which seeks to create new markets and demand, a Red Ocean Strategy emphasizes differentiation and cost leadership within established industries. This approach can lead to innovation but often results in reduced profit margins due to heightened competition among businesses.