Red Ocean refers to a highly competitive market or industry where businesses are constantly fighting for a share of the existing market space. The term is derived from the idea that the ocean turns red due to the fierce competition and bloodshed among sharks fighting for survival. In a Red Ocean, companies focus on beating their rivals, resulting in a zero-sum game where one’s gain is another’s loss. This often leads to price wars, commoditization of products, and limited opportunities for growth and innovation. In contrast, a Blue Ocean represents an untapped market space with little to no competition, allowing companies to create new demand and capture uncontested market share.