If both blue ocean strategy and digital transformation strategy exist; the blue ocean strategy would be the top level strategy, while digital transformation would be a necessary component of achieving the blue ocean strategy. To fully answer this question, let’s first define Blue Ocean Strategy.
Blue Ocean Strategy is credited to W. Chan Kim in the book by the same title. The premise is that there are red oceans and blue oceans -- red oceans being highly contested markets where gaining market share is a battle to the death.
Blue oceans are wide open spaces with bountiful opportunity and smart companies find ways to define their own markets, not simply fight for existing ones. One example cited in the book is Barefoot Wines. The company chose to make wine easier and less pretentious, targeting drinkers who didn’t take their wine so seriously instead of fighting for highbrow sommelier approval.
Digital transformation can go hand-in-hand with blue ocean strategy to achieve spectacular results. Technically, digital transformation would be a component or a necessity of achieving a broader blue ocean strategy.