How to create blue ocean strategy
Blue Ocean Strategy, Expanded Edition: How to Create Uncontested Market Space and Make the Competition Irrelevant by W. Chan KimA global phenomenon now published in a record 43 languages. Over 3.5 million copies sold. A bestseller across five continents.
Since the dawn of the industrial age, companies have engaged in head-to-head competition in search of sustained, profitable growth. They have fought for competitive advantage, battled over market share, and struggled for differentiation. Yet, as widely practiced as this approach has been, W. Chan Kim and Renée Mauborgne’s research shows that is not the way to create profitable growth in the future.
In their book Blue Ocean Strategy—now expanded and with a new Preface by the authors—Kim and Mauborgne (INSEAD) argue that cutthroat competition increasingly results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. Based on a study of 150 strategic moves (spanning more than 100 years across 30 industries), the authors argue that lasting success comes not from battling competitors, but from creating blue oceans—untapped new market spaces ripe for growth. Such strategic moves, which the authors call “value innovation,” create powerful leaps in value that often render rivals obsolete for more than a decade. Blue Ocean Strategy presents a systematic approach to making the competition irrelevant and outlines principles and tools any company, organization or government can use to create and capture their own blue oceans.
A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future.
Learn more at blueoceanstrategy.com. Published by Harvard Business Review Press.
What Is Blue Ocean Strategy?
Want to Create a Blue Ocean? Avoid These Six Red Ocean Traps
Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. It is about creating and capturing uncontested market space, thereby making the competition irrelevant. It is based on the view that market boundaries and industry structure are not a given and can be reconstructed by the actions and beliefs of industry players. In their classic book, Blue Ocean Strategy , W. Red oceans are all the industries in existence today — the known market space.
Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. It is about creating and capturing uncontested market space, thereby making the competition irrelevant. In their classic book, Blue Ocean Strategy, W.
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It sold more than 4 million copies and has been translated into 44 different languages. Now, 12 years later, the authors offer an exciting new book that synthesizes their experience in assisting with the implementation of Blue Ocean strategy. It includes the experience of organizations large and small, for profit, nonprofit and governments. The Acti-Fry made healthier French fries with only one table spoon of oil for two pounds of French fries. It transformed the market for French fry makers. In effect, Blue Ocean strategy involves market-creating innovation. It opens up new possibilities that are not available to organizations operating within the existing cost-value structure.
Firms trying to tap into new markets for growth often fall into the traps of putting resources into wooing existing customers and investing heavily in value-added offerings. Its search engine is easy, fast, accurate — with an underlying algorithm that instantaneously sorts and ranks documents, images, and videos, making people more productive in finding information than most ever imagined. Everyone from first graders to senior citizens use it. With nearly 65 percent of world market share, Google created a veritable blue ocean. With this revolutionary digital eyewear, Google intended to create a new mass market for wearable computers. However, the initial excitement soon gave way to disappointment.
Ninety percent of businesses fail within ten years. In almost any other context, that would be a shocking statistic. If you want to minimize the randomness and trial and error in creating new market space, follow these five systematic steps so that you maximize the chances of hitting the bulls-eye. To help you do this, we introduce the pioneer-migrator-settler map. This will help you target the area where you have the most to gain.