Blue Ocean Strategy: How To Create Uncontested Market Space And Make Competition Irrelevant
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Blue Ocean Strategy: How To Create Uncontested Market Space And Make Competition Irrelevant by W. Chan Kim and Renee Mauborgne
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,
The book is divided into three parts:
1. The first part presents key concepts of blue ocean strategy, including Value Innovation – the simultaneous pursuit of differentiation and low cost – and key analytical tools and frameworks such as the strategy canvas and the four actions framework.
The four actions framework aids in eliminating the trade-off between differentiation and low cost within a company.
2. The second part describes the four principles of blue ocean strategy formulation.
These four formulation principles address how an organization can create blue oceans by looking across the six conventional boundaries of competition (Six Paths Framework), reduce their planning risk by following the four steps of visualizing strategy, create new demand by unlocking the three tiers of noncustomers and launch a commercially viable blue ocean idea by aligning unprecedented utility of an offering with strategic pricing and target costing and by overcoming adoption hurdles.
3. The third and final part describes the two key implementation principles of blue ocean strategy including tipping point leadership and fair process.
These implementation principles are essential for leaders to overcome the four key organizational hurdles that can prevent even the best strategies from being executed.
The four key hurdles comprise the cognitive, resource, motivational and political hurdles that prevent people involved in strategy execution from understanding the need to break from status quo, finding the resources to implement the new strategic shift, keeping your people committed to implementing the new strategy, and from overcoming the powerful vested interests that may block the change.
Blue Ocean Strategy is quickly reaching “must read” status among smart business readers.
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