- Hardcover: 256 pages
- Publisher: Harvard Business Press; 1 edition (February 3, 2005)
- Language: English
- ISBN-10: 1591396190
- ISBN-13: 978-1591396192
Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant by W. Chan Kim and Renée Mauborgne (Hardcover - Feb 3, 2005)
- Key Points
- Moving into untapped or uncontested markets (blue oceans) is a preferable strategy to fighting it out in saturated markets (red oceans).
- Innovation is the key to creating blue oceans. Create something that is new, and you will reap the rewards.
Summary
The authors introduce a “Four Actions Framework” to systematically create blue oceans: Analyzing a business that is competing in a red ocean: 1) Eliminate a part of the offering that is expected 2) Introduce a new offering that is unexpected 3) Reduce an offering 4) Augment an offering
This creates a new offering that is uncontested - at least until it is imitated, which may create a need to apply the same discipline again.
Links
From Publishers Weekly
Kim and Mauborgne's blue ocean metaphor elegantly summarizes their vision of the kind of expanding, competitor-free markets that innovative companies can navigate. Unlike "red oceans," which are well explored and crowded with competitors, "blue oceans" represent "untapped market space" and the "opportunity for highly profitable growth." The only reason more big companies don't set sail for them, they suggest, is that "the dominant focus of strategy work over the past twenty-five years has been on competition-based red ocean strategies"-i.e., finding new ways to cut costs and grow revenue by taking away market share from the competition. With this groundbreaking book, Kim and Mauborgne-both professors at France's INSEAD, the second largest business school in the world-aim to repair that bias. Using dozens of examples-from Southwest Airlines and the Cirque du Soleil to Curves and Starbucks-they present the tools and frameworks they've developed specifically for the task of analyzing blue oceans. They urge companies to "value innovation" that focuses on "utility, price, and cost positions," to "create and capture new demand" and to "focus on the big picture, not the numbers." And while their heavyweight analytical tools may be of real use only to serious strategy planners, their overall vision will inspire entrepreneurs of all stripes, and most of their ideas are presented in a direct, jargon-free manner. Theirs is not the typical business management book's vague call to action; it is a precise, actionable plan for changing the way companies do business with one resounding piece of advice: swim for open waters.
Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.
Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.
Review
"Blue Ocean Strategy will have you wondering why companies need so much persuasion to stay out of shark-infested waters." -- BusinessWeek, April 4th 2005
"Blue Ocean raises pertinent questions… and delivers valuable answers." -- American Way, March 2005
"Companies struggling to stay afloat in the market's...red oceans would do well to look into Blue Ocean Strategy." -- Fort Worth Star Telegram, 14 February 2005
"The book is clearly written, offering many examples of blue-ocean strategies and the techniques to develop such a scheme." -- Globe and Mail, June 8, 2005
"Blue Ocean raises pertinent questions… and delivers valuable answers." -- American Way, March 2005
"Companies struggling to stay afloat in the market's...red oceans would do well to look into Blue Ocean Strategy." -- Fort Worth Star Telegram, 14 February 2005
"The book is clearly written, offering many examples of blue-ocean strategies and the techniques to develop such a scheme." -- Globe and Mail, June 8, 2005
Product Description
Winning by Not Competing: A Fresh Approach to Strategy
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 these hallmarks of competitive strategy are not the way to create profitable growth in the future.
In a book that challenges everything you thought you knew about the requirements for strategic success, W. Chan Kim and Renée Mauborgne argue that cutthroat competition 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 a hundred years and thirty 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 can use to create and capture blue oceans. A landmark work that upends traditional thinking about strategy, this book charts a bold new path to winning the future.
W. Chan Kim is the Boston Consulting Group Bruce D. Henderson Chair Professor of Strategy and International Management at INSEAD. Renée Mauborgne is the INSEAD Distinguished Fellow and Professor of Strategy and Management.
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 these hallmarks of competitive strategy are not the way to create profitable growth in the future.
In a book that challenges everything you thought you knew about the requirements for strategic success, W. Chan Kim and Renée Mauborgne argue that cutthroat competition 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 a hundred years and thirty 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 can use to create and capture blue oceans. A landmark work that upends traditional thinking about strategy, this book charts a bold new path to winning the future.
W. Chan Kim is the Boston Consulting Group Bruce D. Henderson Chair Professor of Strategy and International Management at INSEAD. Renée Mauborgne is the INSEAD Distinguished Fellow and Professor of Strategy and Management.
From the Inside Flap
"After reading Blue Ocean Strategy, you will never again see your competition in quite the same light. Kim and Mauborgne present a compelling case for pursuing strategy with a creative, not combative, approach. Their emphases on value innovation and stakeholder engagement alone make this book a must-read for both executives and students of business."-Carlos Ghosn, President and CEO, Nissan Motor Co., Ltd.
"This is an extremely valuable book to read. It examines the experience of companies in areas as diverse as watches, wine, cement, computers, automobiles, and even the circus to shed new light on the development of future strategies."
-Nicolas G. Hayek, Cofounder and Chairman of the Board, Swatch Group
"I recommend Blue Ocean Strategy to any executive in the private or public sector. It shows how to break from the status quo, create a winning future strategy, and execute this fast at low cost. As much a practical guide as an eye-opener."
-William J. Bratton, Chief of the Los Angeles Police Department, former Police Commissioner of the City of New York
"Kim and Mauborgne's strategies are not only original but practical. Our company has used them and obtained powerful results. The authors chart a bold new path to winning the future."
-Patrick Snowball, Chief Executive, Norwich Union Insurance
"This is an extremely valuable book to read. It examines the experience of companies in areas as diverse as watches, wine, cement, computers, automobiles, and even the circus to shed new light on the development of future strategies."
-Nicolas G. Hayek, Cofounder and Chairman of the Board, Swatch Group
"I recommend Blue Ocean Strategy to any executive in the private or public sector. It shows how to break from the status quo, create a winning future strategy, and execute this fast at low cost. As much a practical guide as an eye-opener."
-William J. Bratton, Chief of the Los Angeles Police Department, former Police Commissioner of the City of New York
"Kim and Mauborgne's strategies are not only original but practical. Our company has used them and obtained powerful results. The authors chart a bold new path to winning the future."
-Patrick Snowball, Chief Executive, Norwich Union Insurance
From the Back Cover
Companies have long 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 in today’s overcrowded industries, competing head-on results in nothing but a bloody “red ocean” of rivals fighting over a shrinking profit pool. In a book that challenges everything you thought you knew about the requirements fro strategic success, W. Chan Kim and Renee Mauborgne contend that while most companies compete within such red oceans, this strategy is increasingly unlikely to create profitable growth in the future.
Based on a study of 150 strategic moves spanning more then a hundred years and thirty industries, Kim and Mauborgne argue that tomorrow’s leading companies will succeed not by battling competitors, but by creating “blue ocean” of uncontested market space ripe for growth. Such strategies moves—termed “value innovation”-create powerful leaps in value for both the firm and its buyers, rendering rivals obsolete and unleashing new demand.
Blue Ocean Strategyprovides a systematic approach to making the competition irrelevant. In this frame-changing book, Kim and Mauborgne present a proven analytical framework and the tools for successfully creating and capturing blue oceans. Examining a wide range of strategic moves across a host of industries, Blue Ocean Strategy highlights the six principles that every company can use to successfully formulate and execute blue ocean strategies. The six principles show how to reconstruct market boundaries, focus on the big picture, reach beyond existing demand, get the strategic sequence right, overcome organizational hurdles, and build execution into strategy.
Upending traditional thinking about strategy, this landmark book charts “a bold new path to winning the future”.
Yet in today’s overcrowded industries, competing head-on results in nothing but a bloody “red ocean” of rivals fighting over a shrinking profit pool. In a book that challenges everything you thought you knew about the requirements fro strategic success, W. Chan Kim and Renee Mauborgne contend that while most companies compete within such red oceans, this strategy is increasingly unlikely to create profitable growth in the future.
Based on a study of 150 strategic moves spanning more then a hundred years and thirty industries, Kim and Mauborgne argue that tomorrow’s leading companies will succeed not by battling competitors, but by creating “blue ocean” of uncontested market space ripe for growth. Such strategies moves—termed “value innovation”-create powerful leaps in value for both the firm and its buyers, rendering rivals obsolete and unleashing new demand.
Blue Ocean Strategyprovides a systematic approach to making the competition irrelevant. In this frame-changing book, Kim and Mauborgne present a proven analytical framework and the tools for successfully creating and capturing blue oceans. Examining a wide range of strategic moves across a host of industries, Blue Ocean Strategy highlights the six principles that every company can use to successfully formulate and execute blue ocean strategies. The six principles show how to reconstruct market boundaries, focus on the big picture, reach beyond existing demand, get the strategic sequence right, overcome organizational hurdles, and build execution into strategy.
Upending traditional thinking about strategy, this landmark book charts “a bold new path to winning the future”.
About the Author
W. Chan Kim is the Boston Consulting Group Bruce D. Henderson Chair Professor of Strategy and International Management at INSEAD. Renée Mauborgne is the INSEAD Distinguished Fellow and Professor of Strategy and Management.
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