There’s a good reason why VCs & Angel investors are always asking “Who are your competitors?” when you pitch them your product.

They want to see if the market is explored & secure.

Blue ocean ideas in the context of SaaS startups are ideas that are new, innovative and in uncontested market spaces that are not yet occupied by existing competitors.

Think of it as a metaphor for an ocean - a blue ocean is a new and untapped opportunity, whereas a red ocean is an area that is already crowded with competitors.

For a SaaS startup, a blue ocean idea could be a new product or service that solves a problem or meets a need in a way that is completely different from what is currently available on the market.

This could involve creating a new category of product, changing the pricing model, or targeting a new and underserved customer segment.

It’s usually a good practice to avoid these types of SaaS markets if you’re creating your first SaaS.

The benefit of pursuing a blue ocean idea is that it allows a SaaS startup to differentiate itself from competitors and potentially capture a large and untapped market share & become a leader in the market and accumulate lots of revenue & profit in a short amount of time.

By creating something new and different, a SaaS startup can avoid the fierce competition and price wars that often come with operating in a red ocean market.