Companies have long engaged in head-to-head competition in search of sustained, profitable growth. Yet in today's overcrowded industries, competing head-on results in nothing but a bloody "red ocean" of rivals fighting over a shrinking profit pool. Based on a study of 150 strategic moves spanning more than 100 years and 30 industries, the authors argue that tomorrow's leading companies will succeed NOT by battling competitors, but creating "blue oceans" of uncontested market space