Should an Entrepreneur Make a Red Ocean Business or a Blue Ocean Business Asks Brandon Frere

Red Sky, Blue Sea

Should an entrepreneur wait to construct a business without competition or jump into a market full of competition if it suits their vision? For many, it seems like hostile competition is a given when starting a business due to the number of other businesses that are competing. Some markets grow so hostile that they are compared to “shark-infested waters” and are known as Red Oceans. However, if a company was to develop some unfair advantage, such as exclusivity on information, great connections or technology, it could gain a head start on competition that may allow them an effective window of opportunity before others can catch up. This strategy is known as the Blue Ocean strategy and recently, many entrepreneurs have been advised to construct companies using the Blue Ocean strategy. However, Brandon Frere, CEO of Frere Enterprises and other ventures, believes that entrepreneurs should consider a Red Ocean if their business fits within that vision.

“Founders equipped with business knowledge and situational awareness that can provide real value shouldn’t shy away from competition,” said Frere. “Entering a marketplace that is already competitive just means you need to be ready to win, or you won’t.”

Founders equipped with business knowledge and situational awareness that can provide real value shouldn't shy away from competition. Entering a marketplace that is already competitive just means you need to be ready to win, or you won't.

Brandon Frere

CEO of Frere Enterprises

Before starting a business, an entrepreneur may want to ask if their business is trying to be a greater version of a business that already exists or if their business is hoping to create a new market. Red Oceans seek to be great, or the greatest company within a pre-existing market. Because of this, Red Oceans claim a space within an existing market, gain as much information as possible and optimize that space as much as possible to take as many profits as possible. These optimized businesses may be better suited to take advantage of the pre-existing market but may have to become well-organized and effectively built out of necessity in order to survive. This may mean that starting a business in Red Oceans may be the best way to create a greater business within the same market.

If an entrepreneur wants to create something fundamentally different, they should consider a Blue Ocean business. Blue Ocean businesses do something fundamentally new, but because of this, they need to make up the metrics for their own success and must wade through a lot of indecision and doubt in order to come out ahead. The advantage of Blue Ocean markets is a head start and potentially reaching an untapped market. Blue Ocean markets can create companies with a unique vision like Amazon, Facebook or Apple that fundamentally change their marketplace. However, Red Ocean businesses can carve out a stable, reliable income and may be easier to set up and may help develop skills that are useful in either ocean. When a Blue Ocean business begins to expand, they may come to rely upon executives skilled at business performance that come from Red Ocean backgrounds. Business professionals may learn how to take advantage of any opportunities in a Red Ocean and use that skill to great effect in a Blue Ocean. Because of this, if the vision and information behind an entrepreneur’s business lead to a Red Ocean, they should jump at it.

“I know I’m in the minority because I prefer markets that are harder to enter; as long as I’ve done enough research to know I won’t lose money,” said Frere. “Entering a market with some competition can teach an entrepreneur how to plan effectively, how to organize effectively and how to win.”

About Brandon Frere

Brandon Frere is an entrepreneur and businessman who lives in Sonoma County, California. He has designed and created multiple companies to meet the ever-demanding needs of businesses and consumers, alike. His website,, is used as a means of communicating many of the lessons, fundamentals and information that he has learned throughout his extensive business and personal endeavors, most recently in advocating on behalf of student loan borrowers nationwide.

As experienced during his own student loan repayment, Mr. Frere found out how difficult it can be to work with federally contracted student loan servicers and the repayment programs designed to help borrowers. Through those efforts, he gained an insider’s look into the repayment process and the motivations behind the inflating student loan debt bubble. His knowledge of the often confusing landscape of student loan repayment became a vital theme in his future endeavors, and he now uses those experiences to help guide others through the daunting process of applying for available federal repayment and loan forgiveness programs.

Source: Brandon Frere


Categories: Entrepreneurship

Tags: Blue Ocean, business model, entrepreneurship, market, marketplace, Red Ocean, small business owner

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