Introduction As from the industrial revolution in England in 1760 until now, the companies always must compete strongly in order to maintain a stable growth rate in their business and affirm their position in the market. However, the normal methods and the traditional ways of strategic thinking, which only focus on how can take full advantage of the positive and unique aspects and how can find a comparative advantage over competitors, make a competition in the traditional market become more difficult than ever. In recent years, when the global competitiveness is becoming more violently and complexly and the market is not only to widen, but also to shorten simultaneously, the fact requires the companies to discover a new competitive strategy in order to survival and develop. If Red Ocean is the term used to call the traditional market, Blue Ocean is a new term which implies the market spaces that companies need to exploit to become a winner in the market. What are the differences between Red Ocean and Blue Ocean which the firms need to know to have a lucid choice? In this essay, the first part will provide an overview of Blue Ocean strategy. How to create a Blue Ocean and what a cornerstone of Blue Ocean strategy is are the important things which the author wants companies need to pay attention. In the final part, the author will show the differences between Blue Ocean and Red Ocean. The differences will help companies have an evaluation of Blue Ocean and make an accurate decision in their business. *Part one: *An overview of Blue Ocean Strategy What is Blue Ocean* Strategy*? *How to create a *Blue Ocean? Value Innovation *What is* Red Ocean Strateg*y*? Focus difference Tool difference Conclusion...