Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant by W. Chan KimThe global phenomenon, embraced by business worldwide and now published in more than 40 languages.
This international bestseller challenges everything you thought you knew about the requirements for strategic success.
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 this influential and immensely popular book shows, these hallmarks of competitive strategy are not the way to create profitable growth in the future.
In the international bestseller Blue Ocean Strategy, W. Chan Kim and Renee 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 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 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.
The Blue Ocean Strategy for Nomad Capitalists
Blue Ocean Strategy
If you are a part of the business community, you might be familiar with the concept of blue ocean strategy. It is a marketing theory from the similarly-named book that was published in and became a perennial bestseller. It is generally acknowledged that the title, Blue Ocean Strategy , sounds very appealing. Ironically, this name also became one of the main reasons why the theory is harshly criticized. Some say that the blue oceans concept is a myth and nothing more than a sweet title. They also say that the authors, W.
To understand red ocean strategy let us begin by defining blue ocean strategy. Blue Ocean Strategy is where a company creates a completely new market space or market category. This new market space is created by launching new offerings, with the aim being to make the competition irrelevant so that an organization can grow, uncontested, at least in the beginning. You can think of a blue ocean being a place where the sailing is easy uncontested with clear water if you can successfully introduce an offering. Blue Oceans can be thought of as markets that do not exist yet. The microwave oven would have been a blue ocean in the s. Conversely, Red Oceans can be thought of as all the marketplaces which currently exist.
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Are you tired of battling your competitors in a saturated marketplace? Do you find yourself acting as a competitive cancer, trying to reign victoriously among your constituents? Competition is cutthroat in the business world, which is no secret. Brands are constantly fighting each other in a bloody red ocean of rivals, wading within a shrinking profit pool, with the hopes of maximizing mindshare and net profits. Essentially, you need to migrate from the red ocean to the blue ocean.
The concept of "blue ocean strategy" first took the business world by storm in when authors W. Chan Kim and Renee Mauborgne wrote a bestselling book, "Blue Ocean Strategy," which has been translated into 43 languages. The authors discuss the benefits for business owners to leave the red ocean, characterized by the bloody, shark-infested waters of competition, and enter the blue ocean, where there is no competition and limitless space to create something new. It is important to evaluate your business to determine whether you should rethink your market strategy and enter the "blue ocean. If your market strategy consists of fighting for a piece of finite sales, you are in the red ocean.
The blue ocean strategic concept was developed by Profs. It posits that creating a new market can be more beneficial than competing in an existing market with established competitors. These new markets are blue oceans. Value innovation involves the pursuit of both differentiation and low-cost strategies to open up new and non-competitive markets. This innovation may take place at any or all stages of the value chain.