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Written by the business world's new gurus, Blue Ocean Strategy continues to challenge everything you thought you knew about competing in today's crowded market place. Based on a study of 150 strategic moves spanning more than a hundred years and thirty industries, authors W. Chan Kim and Renee Mauborgne argue that lasting success comes from creating 'blue oceans': untapped new market spaces ripe from growth. And the business world has caught on - companies around the world are skipping the bloody red oceans of rivals and creating their very own blue oceans. With over one million copies sold world wide, Blue Ocean Strategy is quickly reaching "must read" status among smart business readers. Have you caught the wave?
- Sales Rank: #22290 in Books
- Brand: Brand: Harvard Business Review Press
- Published on: 2005-02-03
- Original language: English
- Number of items: 1
- Dimensions: 1.00" h x 6.10" w x 9.40" l, 1.13 pounds
- Binding: Hardcover
- 256 pages
Features
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.
Review
“This breakthrough book is essential for any strategist or entrepreneur who wants to move out of intensively competitive, shark-infested waters and into an opportunity- filled, open ocean.” — Business Insider
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
Most helpful customer reviews
3 of 3 people found the following review helpful.
Bit theoretical and sometimes boring "just-ok" book on strategy
By Bas Vodde
I had high expectations of "Blue Ocean Strategy". The book never came recommended, but it has been a business best-seller... though I'm not quite sure whether that says anything about the quality of a book. I have to say that the book isn't bad but it wasn't very fantastic either. It had its good moments (earlier chapters) but also its bad moments (when it becomes too much like a recipe).
Blue ocean strategy is about creating an organizational strategy that is not based on the competition but based on finding a new market. The book consists of three parts: 1) Overview, 2) Formulating a strategy, 3) Executing the strategy.
The first part defines Blue Ocean strategies and gives several examples of where companies have created a blue ocean. It also introduces several tools that are useful for analyzing markets and that might enable finding a blue ocean (which they call unlock a blue ocean).
The second part talks about how to formulate blue ocean strategies. It shows how to the the strategy canvas for mapping out the current markets and how to break out of these by eliminating or enhancing factors of the product. Also it covers how to look beyond customers and find out how to create new customers by delivering additional value (which is what they name value innovation).
The last part covers the execution of a strategy (which was the part I liked least). The authors realize that a strategy without execution won't be too beneficial, but realize there are certain common obstacles for executing a blue ocean strategy, especially related to the organization. They give examples of how you can overcome these hurdles.
The book was ok written. I felt it was a bit dry at times. The case studies were pretty good, but they were all retrospectively. That is also what bothered me most about the book, which is the authors have analyzed many cases and then created a process about how such a strategy could have been created. But in most cases, I guess, the tools from this book were probably not used as the road from strategy to execution doesn't go in the nicely defined steps the authors describe (at least, not in my experience). This caused a feeling that the book was too theoretical. It isn't a bad book but it was definitively not a 'yeah' book either. I wouldn't quickly recommend it except for people intensely interested in strategy. So, just three stars.
0 of 0 people found the following review helpful.
Core of TOC Viable Vision
By Utkan Ulu�ay
I was studying on Theory Of constraints. In a video of E.M. Goldratt I have noticed that he is surely suggesting to read this book to understand Viable Vision concept comprehendly. I have found the book on my kindle, read and amazed. It is truly related with Viable vision Red curve and Green curve. It is the core of TOC Mafia Offer which sayas "solve a SIGNIFICANT need of a customer and to the extend that NO OTHER COMPETITOR CAN in short term".
In the book you will see good examples and bad examples. There is a good one almost after dozens of bad ones. Why ? Goldratt says the key is SIGNIFICANT need. Poor examples have solved a need of a customer which is important in their eyes, not customer's. So the result is not attractive.
Another point is the strenth of the solution, if it is easy to imitate (eg. lowering price) surely competitors will follow you very soon. If your solution covers a paradigm shift then you will probably have a minimum of ten years to prosper without disturbing competition.
There are ways of implementation presented in the book which are really guiding.
I definitely suggest to read for every desicion maker in any "wishing to grow" organization. Moreover I believe this is a must read for any new entreprenaur.
0 of 0 people found the following review helpful.
Creating a Leap in Value!
By O. Halabieh
Below are key excerpts that I found particularly insightful:
1- "Blue oceans, in contrast, are defined by untapped market space, demand creation, and the opportunity for highly profitable growth. Although some blue oceans are created well beyond existing industry boundaries, most are created from within red oceans by expanding existing industry boundaries, as Cirque du Soleil did. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set."
2- "However, there is little practical guidance on how to create them. Without analytic frameworks to create blue oceans and principles to effectively manage risk, creating blue oceans has remained wishful thinking that is seen as too risky for managers to pursue as strategy. This book provides practical frameworks and analytics for the systematic pursuit and capture of blue oceans."
3- "Consistent with this observation, our study shows that the strategic move, and not the company or the industry, is the right unit of analysis for explaining the creation of blue oceans and sustained high performance. A strategic move is the set of managerial actions and decisions involved in making a major market-creating business offering."
4- "The creators of blue oceans, surprisingly, didn't use the competition as their benchmark. Instead, they followed a different strategic logic that we call value innovation. Value innovation is the cornerstone of blue ocean strategy. We call it value innovation because instead of focusing on beating the competition, you focus on making the competition irrelevant by creating a leap in value for buyers and your company, thereby opening up new and uncontested market space."
5- "To fundamentally shift the strategy canvas of an industry, you must begin by reorienting your strategic focus from competitors to alternatives, and from customers to noncustomers of the industry.^ To pursue both value and cost, you should resist the old logic of benchmarking competitors in the existing field and choosing between differentiation and cost leadership."
6- "To reconstruct buyer value elements in crafting a new value curve, we have developed the four actions framework...Which of the factors that the industry takes for granted should be eliminated! Which factors should be reduced well below the industry's standard? Which factors should be raised well above the industry's standard? Which factors should be created that the industry has never offered?"
7- "The first principle of blue ocean strategy is to reconstruct market boundaries to break from the competition and create blue oceans...Path 1: Look Across Alternative Industries...Path 2: Look Across Strategic Groups Within Industries...Path 3: Look Across the Chain of Buyers...Path 4: Look Across Complementary Product and Service Offerings...Path 5: Look Across Functional or Emotional Appeal to Buyers...Path 6: Look Across Time."
8- "To maximize the size of their blue oceans, companies need to take a reverse course. Instead of concentrating on customers, they need to look to noncustomers. And instead of focusing on customer differences, they need to build on powerful commonalities in what buyers value. That allows companies to reach beyond existing demand to unlock a new mass of customers that did not exist before."
9- "Companies need to build their blue ocean strategy in the sequence of buyer utility, price, cost, and adoption."
10- "Companies, like individuals, often have a tough time translating thought into action whether in red or blue oceans. But compared with red ocean strategy, blue ocean strategy represents a significant departure from the status quo. It hinges on a shift from convergence to divergence in value curves at lower costs. That raises the execution bar. Managers have assured us that the challenge is steep. They face four hurdles. One is cognitive: waking employees up to the need for a strategic shift. Red oceans may not be the paths to future profitable growth, but they feel comfortable to people and may have even served an organization well until now, so why rock the boat? The second hurdle is limited resources. The greater the shift in strategy, the greater it is assumed are the resources needed to execute it. But resources were being cut, and not raised, in many of the organizations we studied. Third is motivation. How do you motivate key players to move fast and tenaciously to carry out a break from the status quo? That will take years, and managers don't have that kind of time. The final hurdle is politics. As one manager put it, "In our organization you get shot down before you stand up.""
11- "Key to winning over your detractors or devils is knowing all their likely angles of attack and building up counterarguments backed by irrefutable facts and reason."
12- "To change the mass it focuses on transforming the extremes: the people, acts, and activities that exercise a disproportionate influence on performance. By transforming the extremes, tipping point leaders are able to change the core fast and at low cost to execute their new strategy."
13- "Because blue and red oceans have always coexisted however, practical reality demands that companies succeed in both oceans and master the strategies for both. But because companies already understand how to compete in red oceans, what they need to 1 learn is how to make the competition irrelevant. This book aims too help balance the scales so that formulating and executing blue ocean strategy can become as systematic and actionable as competing in the red oceans of known market space."
See all 509 customer reviews...
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