Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant
Blue Ocean Strategy Kim W. Chan and Renée 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.
“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