Military strategies were often the foundation for most business strategies. The market was seen as a battlefield where people were constantly fighting for their place under the sun.

Michael Porter, a prominent figure in business strategy development, emphasized fundamental approaches to gain a competitive edge. He highlighted the potential of either pursuing cost leadership or focusing on a distinct market niche. For instance, envision opening a bookstore. You'd have to decide between providing the most affordable prices and offering a specialized collection of rare books.

Outdated business approaches confine companies to “red oceans.” These encompass currently established industries characterized by fierce competition and crowded markets. Achieving success through direct competition in these contested markets is actually hard. It even proves to be exceptionally challenging.

When it comes to providing the lowest cost for a product, there's a big chance of drastically reducing your income. Typically, only one low-cost company can become successful in the market. Here, we can refer to *McDonald's*. They succeeded as a low-cost provider in the fast-food industry, while many smaller chains struggled and eventually closed down.

Pursuing a specialized niche approach is likewise a strategy with limited potential. Narrowing down to tiny market segments limits opportunities. It's like cutting a pie into smaller pieces — not sustainable. On the other hand, the blue ocean strategy helps us find fresh strategies that expand the market's possibilities.