Islamic educational institutions face increasingly complex competition as communities expect schools to provide not only religious knowledge but also practical competencies that support students’ future independence. This study aims to analyze the implementation of the Blue Ocean Strategy through the Tahfidz Entrepreneur program as an innovative approach to creating new market space through educational value differentiation. A qualitative case study design was employed to examine the implementation process, institutional differentiation, competitiveness, and community response. Data were collected through in-depth interviews, observation, and documentation, and analyzed using data condensation, data display, and conclusion drawing or verification. The findings indicate that the Tahfidz Entrepreneur program creates value innovation by integrating Quranic memorization with entrepreneurial development. The integration strengthens the distinctive educational identity of the madrasah, contributes to institutional competitiveness, builds public trust, and increases community interest. The program also demonstrates that religious and entrepreneurial competencies can be developed within an integrated educational model. The study implies that Blue Ocean Strategy can provide an alternative strategic framework for Islamic educational institutions seeking to develop adaptive, distinctive, sustainable, and community-oriented flagship programs.
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