Why fight your competitors when you can make them irrelevant?

The classic MBA example of a Blue Ocean is Cirque du Soleil. In the 1980s, the circus industry was a dying "Red Ocean." Ringling Bros was fighting over a shrinking audience of children, dealing with high costs for animal care, and facing backlash from animal rights groups.

Cirque du Soleil didn't try to make a "better" traditional circus. They eliminated the animals entirely (cutting massive costs) and blended circus acrobatics with Broadway theater. They created a completely new market: upscale, artistic entertainment for adults who were willing to pay premium ticket prices. They created a Blue Ocean.