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Blue Ocean Strategy

Blue Ocean Strategy
First edition cover
Author Renée Mauborgne
Country United States
Language English
Genre Business Management
Publisher Harvard Business School Press
Publication date
2005
Media type Print (Hardback)
Pages 256 pp
ISBN
OCLC 56421900
658.8/02 22
LC Class HF5415.153 .K53 2005
Blue Ocean Strategy is a book published in 2005 and written by
  • Blue Ocean Strategy book website

External links

  1. ^ Kim, W.C., Mauborgne, R. (2005). Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Boston: Harvard Business School Press.  
  2. ^ "Blue Ocean Strategy Overview". Flevy. Retrieved 20 November 2012. 
  3. ^ Kumar, Ajay S. "Blue Ocean Strategy". TechnoparkToday.com. Retrieved 20 November 2012. 
  4. ^ a b "A conversation with W.Chan Kim and Renee Mauborgne".  
  5. ^ Starmer, Jesse. "Blue Ocean Strategy". SlideShare. p. 4. Retrieved 20 November 2012. 
  6. ^ Kim, W.C., Mauborgne, R. (January–February 1997). "Value Innovation – The Strategic Logic of High Growth". Harvard Business Review 75: 103–112. 
  7. ^ Kim, W. Chan; Maubourgne, Renee (January–February 1997). "Value Innovation: The Strategic Logic of High Growth". Harvard Business Review (Boston: Harvard Business School Press): 103–112. 
  8. ^ Kim, W. Chan; Mauborgne, Renee (1997). "Value Innovation – The Strategic Logic of High Growth". Harvard Business Review 75: 103–112. 
  9. ^ Kim, W. Chan; Mauborgne, Renee (1997). "Fair Process: Managing in the Knowledge Economy". Harvard Business Review 75: 65–76. 
  10. ^ Kim, W. Chan; Mauborgne, Renee (1998). "Procedural Justice, Strategic Decision Making and the Knowledge Economy". Strategic Management Journal 19: 323–341.  
  11. ^ Kim, W. Chan; Mauborgne, Renee (1999). "Creating New Market Space". Harvard Business Review 77: 83–93. 
  12. ^ Kim, W. Chan; Mauborgne, Renee (1999). "Strategy, Value Innovation, and the Knowledge Economy". Sloan Management Review 40 (3). 
  13. ^ Kim, W. Chan; Mauborgne, Renee (2000). "Knowing a Winning Business Idea When You See One". Harvard Business Review 78: 129–141. 
  14. ^ Kim, W. Chan; Mauborgne, Renee (2002). "Charting Your Company's Future". Harvard Business Review 80: 76–85. 
  15. ^ Kim, W. Chan; Mauborgne, Renee (2003). "Tipping Point Leadership". Harvard Business Review 81: 60–69. 
  16. ^ Kim, W. Chan; Mauborgne, Renee (2004). "Blue Ocean Strategy". Harvard Business Review: 76–85. 
  17. ^ Kim, W. Chan; Mauborgne, Renee (2014). "Blue Ocean Leadership". Harvard Business Review. 
  18. ^ Kim, W. Chan; Maubourgne, Renee (October 2004). "Blue Ocean Strategy". Harvard Business Review (Boston: Harvard Business School Press): 76–85. 
  19. ^ FORTUNE. China's Mobile Maestro by Clay Chandler,31 July 2007 http://money.cnn.com/magazines/fortune/fortune_archive/2007/08/06/100156748/index2.htm
  20. ^ World Business Interview: Michael Critelli, 9 May 2007 http://www.worldbusinesslive.com/search/article/655150/wb-interview-michael-critelli/
  21. ^ INSEAD Knowledge: The Starwood experience http://knowledge.insead.edu/contents/starwood.cfm
  22. ^ Williams, Mike (October 10, 2013). "Nintendo’s Iwata Doesn’t Fear Failure". Gamesindustry. 
  23. ^ Kim, W.C.; Mauborgne, R.; Bong, R.; Ji, M. "Tata Nano: The People’s Car That Promises to Reconstruct the Automobile Industry". Harvard Business School Press. Retrieved 2013. 
  24. ^ "Best Selling Books". The Wall Street Journal. March 4, 2005. 
  25. ^ "The BusinessWeek Best Seller List". BusinessWeek. November 5, 2007. Retrieved March 17, 2014. 
  26. ^ "Best Books of 2005". Amazon.com. Retrieved March 17, 2014. 
  27. ^ "Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant". Amazon.com. Retrieved March 17, 2014. 
  28. ^ Lidsky, David (January 5, 2006). "Fast Company's Best Books of 2005". Fast Company. Retrieved March 17, 2014. 
  29. ^ Murray, Patricia (December 17, 2006). "Business - Widen Your Horizons - How to... Out-think Your Competition Rather Than Trying to Outdo Other's Offers or Products, Re-define the Market, Writes Patricia Murray". Sunday Tribune. 
  30. ^ "800-CEO-READ's Decade-in-Review". 800ceoread. Retrieved March 17, 2014. 
  31. ^ Lucier, Chuck. "Best Business Books 2005: Strategy". strategy+business. Retrieved March 17, 2014. 
  32. ^ "独家发布:新中国60年中国最具影响力的600本书". ifeng.com. September 30, 2009. Retrieved March 17, 2014. 
  33. ^ 新中国60年中国最具影响力的600本书"名单""". www.news.cn. September 29, 2009. Retrieved March 17, 2014. 
  34. ^ "TOP20 Książek, Które Ukształtowały Polskich Liderów". Puls Biznesu. Retrieved March 17, 2014. 
  35. ^ "W. Chan Kim & Renee Mauborgne". Thinkers50. Retrieved March 17, 2014. 
  36. ^ Ohannessian, Kevin (December 26, 2011). "The Leadership Hall of Fame". Fast Company. Retrieved March 17, 2014. 
  37. ^ Ohannessian, Kevin (July 28, 2011). """Leadership Hall of Fame: W. Chan Kim and Renee Mauborgne, Authors of "Blue Ocean Strategy. Fast Company. Retrieved March 17, 2014. 
  38. ^ Nắng tháng 8', 'Biển và chim bói cá' đoạt giải Sách hay 2013"'". VietBao. September 22, 2013. Retrieved March 18, 2014. 
  39. ^ Fukolova, Julia (December 3, 2012). "Bestseller of all times". kommersant.ru. Retrieved March 21, 2014. 
  40. ^ "Harvard Business Review Readers Choose the Best Management Books 2013". Diamond Harvard Business Review. October 8, 2013. Retrieved March 18, 2014. 
  41. ^ "In the Lead Forum". The Wall Street Journal. April 16, 2007. p. R2. 
  42. ^ Simon, Andrea (November 2, 2013). "Ten Business Trends From The Trenches For 2013". Forbes. Retrieved March 18, 2014. 
  43. ^ Simon, Andrea (June 18, 2013). "Major Mid-Year Correction Necessary". Forbes. Retrieved March 19, 2014. 
  44. ^ BusinessWeek. April 4, 2005. 
  45. ^ Dearlove, Des (Spring 2005). "Forever Blue". Business Strategy Review: 56–59. 
  46. ^ Huifen, Chen (October 13, 2004). "Firms Should Adopt Blue Ocean Strategy to Stay Ahead". The Business Times. 
  47. ^ Lilly, Bryan (September 5, 2005). "Explore New Markets With Seaworthy Strategy". Marketplace Magazine. 
  48. ^ Pawlak, Jim (January 31, 2005). "The Edge. New Book". Chicago Tribune. 
  49. ^ Pawlak, Jim (January 31, 2005). "Companies Hope to Sail in Profitable Blue Ocean". Daily Herald. 
  50. ^ Barlett, Michael (November 14, 2005). "Attention Next Generation! Do You Have the Passion?". Credit Union Journal. 
  51. ^ Gismondi, Anthony (January 1, 2005). "Yellowtail, Spain, Scretowps -- 2004's Top Wine Stories". Vancouver Sun. 
  52. ^ McGee, Regina (October 2006). "What's Up with Blue Ocean Buzz?". Association Meetings. 
  53. ^ Abraham, Stan (October 1, 2008). "Blue Oceans, Temporary Monopolies, and Lessons from Practice". Strategy & Leadership. 
  54. ^ "The Top 10 Business Books for April". Business First. May 18, 2007. 
  55. ^ a b Pollard, Wayne E. (2005-12-01). "Blue Ocean Strategy's Fatal Flaw". CMO Magazine. 
  56. ^ a b "Multiple Critiques of Blue Ocean Strategy". 2007. Retrieved 2007-07-19. 
  57. ^ Crime in the United States
  58. ^ "Critique of Blue Ocean Strategy". 2007. Retrieved 2011-06-30. 
  59. ^ a b Cameron, Douglas (2010). Cultural Strategy. Oxford University Press.  

References

Many of this books key concepts were previously covered in Competing For The Future by Gary Hamel and C.K Prahalad, which was published in 1996.[59] The authors encouraged managers to stake out new marketing space, which they termed white space, in order to "create and dominate emerging opportunities."[59]

It is argued that rather than a theory, Blue Ocean Strategy is an extremely successful attempt to brand a set of already existing concepts and frameworks with a highly "sticky" idea.[58] The blue ocean/red ocean analogy is a powerful and memorable metaphor, which is responsible for its popularity. This metaphor can be powerful enough to stimulate people to action. However, the concepts behind the Blue Ocean Strategy (such as the competing factors, the consumer cycle, non-customers, etc.) are not new. Many of these tools are also used by Six Sigma practitioners and proposed by other management theorists.

Brand and communication are taken for granted and do not represent a key for success. Kim and Maubourgne take the marketing of a value innovation as a given, assuming the marketing success will come as a matter of course.[55]

Additionally, Blue Ocean Strategy cannot be identified as true causation for success. The authors cite the strategies used by NYPD Commissioner Bratton as a key example of Blue Ocean applied in the public sector. They defined this success as a significant drop in crime in the City of New York after Bratton took office in 1994. Many social scientists would disagree that it was Bratton's policies that led to crime reduction: rather, the city was simply part of a nationwide trend in decreasing crime.[57]

The research process followed by the authors has been criticized[56] on several grounds. Criticisms include claims that no control group was used, that there is no way to know how many companies using a Blue Ocean Strategy failed and the theory is thus unfalsifiable, that a deductive process was not followed, and that the examples in the book were selected to "tell a winning story."

However with just one case study, this hole in their data persists despite the publication of Value Innovation concepts since 1997. Hence, a critical question is whether this book and its related ideas are descriptive rather than prescriptive.[55] The authors present many examples of successful innovations, and then explain from their Blue Ocean perspective – essentially interpreting success through their lenses.[56]

While Kim and Mauborgne propose approaches to finding uncontested market space, at the present there are few success stories of companies that applied their theories in advance. One success story that does exist is Nintendo, who first applied the Blue Ocean Strategy to create the Nintendo DS handheld game system which was the first portable gaming system to offer dual screen gaming and a touch screen in 2004. In 2006, Nintendo released the Wii, which redefined how video games are played. The 3DS is Nintendo's third endeavour for its blue ocean strategy. Its first two attempts, the Nintendo DS and Wii, were wildly successful, becoming some of the biggest selling platforms in history. Nintendo revealed their Blue Ocean Strategy during an E3 press conference during the hype build-up of the Wii.

Criticisms

The Wall Street Journal recommends Blue Ocean Strategy for the top manager.[41] Forbes calls it one of the 10 business trends for 2013 and argues that “blue ocean strategies are more influential than ever.”[42][43] BusinessWeek says that “Blue Ocean Strategy will have you wondering why companies need so much persuasion to stay out of shark-infested waters.”[44] The Business Strategy Review said the book “challenges everything you knew about strategy,” and the Business Times called on firms to “adopt blue ocean strategy to stay ahead.”[45][46] Marketplace magazine recommends Blue Ocean Strategy as a book “you need to read.”[47] In addition, the book has received many positive reviews from various publications that include Chicago Tribune, Daily Herald, Credit Union Journal, Vancouver Sun, Association Meetings, Strategy & Leadership, and Business First, among many others.[48][49][50][51][52][53][54]

In 2009, Blue Ocean Strategy was selected by the China Daily and the China Research Institute as one of the 40 most influential books in the History of the People’s Republic of China (1949-2009) along with Adam Smith’s ″The Wealth of Nations″ under the category of ″Economics and Finance.″[32][33] In 2010, Polish group ThinkTank selected Blue Ocean Strategy as one of the Top 20 books that have shaped Polish Leaders.[34] Blue Ocean Strategy won the Thinkers50 2011 Strategy Award for Best Business Book of the decade and in the same year, it was introduced to the Fast Company Leadership Hall of Fame.[35][36][37] In 2013, the book received the GoodBooks Award in the Management category by the Vietnamese Institute for Research on Education Development (IRED), was selected as one of the 15 Best Business Books of the last decade in Russia by the Kommersant.ru magazine, and selected as one of the top three best management books in Japan by the Diamond Harvard Business Review.[38][39][40]

Since Blue Ocean Strategy was published in 2005 it has been translated into 43 languages and has sold over 3.5 million copies. The book was named a bestseller by the Wall Street Journal, BusinessWeek, and the Amazon.com.[24][25][26][27] It was selected as one of the “Best Books of 2005” by Fast Company magazine, won “The Best Business Book of 2005” Prize at the Frankfurt Book Fair, and achieved bestselling book of the decade status by 800-CEO-READ (2000-2010).[28][29][30] Strategy+Business magazine selected it as #1 strategy book of 2005.[31]

Reception

See also

  • Tipping Point Leadership
  • Four Key Organizational Hurdles:
    • Riding the "Electric Sewer" to break the Cognitive Hurdle
    • Redirecting from cold spots to hot spots and horse trading to overcome the Resource Hurdle
    • Placing Kingpins in a Fishbowl and atomize the change to jump over the Motivational Hurdle
    • Leverage your angels and consigliere to overcome the Political Hurdle
  • 3 E principles of Fair Process: engagement, explanation, clarity of expectations

For blue ocean strategy execution:

  • The Strategy Canvas
  • The initial litmus test for BOS: focus, divergence, compelling tagline
  • The Four Actions Framework
  • Eliminate-Reduce-Raise-Create Grid
  • The Six Paths Framework
  • Buyer Utility Map
  • Buyer Experience Cycle
  • Price Corridor of the Mass model
  • Four Steps of Visualizing Strategy Process
  • Pioneer-Migrator-Settler Map
  • Three Tiers of Noncustomers Framework
  • The Sequence of Blue Ocean Strategy

For blue ocean strategy formulation:

Summary of Blue Ocean Strategy Frameworks, Tools and Methodologies

Blue Ocean Strategy has introduced a number of practical tools, methodologies and frameworks to formulate and execute blue ocean strategies, attempting to make creation of blue oceans a systematic, repeatable process. Some of these are listed below:

Tools and frameworks

  • TATA Motors: In their recent product India's "'Nano Car" – 'World's Cheapest Car' they have adopted combination of differentiation and low cost as stated in Blue Ocean Strategy. It is the outcome of combo – "Value Innovation" and "playing a different game".[23]
  • Wii: Rather than releasing a more technologically advanced video game console with more features as in previous generations, Nintendo released a console with innovative controls made to attract people that usually do not play video games such as females and the elderly.[22]
  • Starwood: One group which has been exploring blue ocean thinking for the past three years is Starwood Hotels and Resorts. In an interview to INSEAD Knowledge, Robyn Pratt, Vice President, Six Sigma and Operational Innovation talks about how they are taking a step-by-step approach to implementing the concept.[21]
  • Pitney Bowes: Michael Critelli, the departing CEO of Pitney Bowes, explained how Pitney Bowes created the Advanced Concept & Technology Group (ACTG), a unit responsible for identifying and developing new products outside. Critelli cited ACTG's development of a machine, which enables people to design and print their own postage from their desktops, as an example of a blue ocean strategic move.[20]
  • China Mobile: China Mobile CEO Wang Jianzhou talked about China's hinterland as a classic "blue-ocean market," where the company is casting its net widely without worrying about getting tangled up with the nets of rivals.[19]

Reports of businesses using Blue Ocean Strategy concepts include:

Recent Application Examples

  • Dyson: Cyclonic Vacuum Cleaners.
  • Home Depot: offering the prices and range of lumberyard, while offering consumers classes to help them with DIY projects;
  • Curves: redefining market boundaries between health clubs and home exercise programs for women;
  • Southwest Airlines: offering flexibility of bus travel at the speed of air travel using secondary airports;
  • Netjets: fractional jet ownership;
  • Cirque du Soleil: Blending of opera and ballet with circus format while eliminating star performer and animals;

Some examples of companies that may have created new market spaces in the opinion of Kim and Mauborgne include ;

Examples documented in the book

Examples

The name "Blue Ocean Strategy" was introduced in the Harvard Business Review article published in October 2004.[18] The book builds on and extends the work presented in these articles by providing a narrative arc that draws all these ideas together to offer a unified framework for creating and capturing blue oceans.

  • 1997. "Value Innovation – The Strategic Logic of High Growth". Harvard Business Review 75, January–February 103–112.[8]
  • 1997. "Fair Process: Managing in the Knowledge Economy." Harvard Business Review 75, July–August 65-76.[9]
  • 1998. "Procedural Justice, Strategic Decision Making and the Knowledge Economy." Strategic Management Journal 19, April 323-341.[10]
  • 1999. "Creating New Market Space." Harvard Business Review 77, January–February, 83–93.[11]
  • 1999. "Strategy, Value Innovation, and the Knowledge Economy." Sloan Management Review 40, no.3, Spring.[12]
  • 2000. "Knowing a Winning Business Idea When You See One." Harvard Business Review 78, September–October, 129–141.[13]
  • 2002. "Charting Your Company's Future." Harvard Business Review 80, June, 76–85.[14]
  • 2003. "Tipping Point Leadership." Harvard Business Review 81, April, 60–69.[15]
  • 2004. "Blue Ocean Strategy." Harvard Business Review, October, 76–85.[16]
  • 2014. "Blue Ocean Leadership." Harvard Business Review, May, .[17]

Research results were first published in 1997 in a Harvard Business Review article by Kim and Mauborgne titled "Value Innovation: The Strategic Logic of High Growth".[7] This article was the seminal piece that established the cornerstone of blue ocean strategy and argued for simultaneous pursuit of differentiation and low cost. The ideas, tools and frameworks were tested and refined over the years in corporate practice in Europe, the United States and Asia and presented in the following eight additional articles, before being published in the form of a book in 2005.

Kim and Mauborgne studied about one hundred fifty positions made from 1880 to 2000 in more than thirty industries and closely examined the relevant business players in each. They analyzed the winning business players as well as the less successful competitors. Studied industries included idiosyncratic strategic moves and first called it value innovation, and then Blue Ocean Strategy.

The contents of the book are based on research and a series of Harvard Business Review articles as well as academic articles on various dimensions of the topic.

Preceding work

Blue ocean strategy, on the other hand, is based on the view that market boundaries and industry structure are not given and can be reconstructed by the actions and beliefs of industry players. This is what the authors call the reconstructionist view. Assuming that structure and market boundaries exist only in managers’ minds, practitioners who hold this view do not let existing market structures limit their thinking. To them, extra demand is out there, largely untapped. The crux of the problem is how to create it. This, in turn, requires a shift of attention from supply to demand, from a focus on competing to a focus on value innovation – that is, the creation of innovative value to unlock new demand. This is achieved via the simultaneous pursuit of differentiation and low-cost. As market structure is changed by breaking the value/cost tradeoff, so are the rules of the game. Competition in the old game is therefore rendered irrelevant. By expanding the demand side of the economy new wealth is created. Such a strategy therefore allows firms to largely play a non–zero-sum game, with high payoff possibilities.

Kim and Mauborgne argue that while traditional competition-based strategies (red ocean strategies) are necessary, they are not sufficient to sustain high performance. Companies need to go beyond competing. To seize new profit and growth opportunities they also need to create blue oceans. The authors argue that competition based strategies assume that an industry’s structural conditions are given and that firms are forced to compete within them, an assumption based on what academics call the structuralist view, or environmental determinism. To sustain themselves in the marketplace, practitioners of red ocean strategy focus on building advantages over the competition, usually by assessing what competitors do and striving to do it better. Here, grabbing a bigger share of the market is seen as a zero-sum game in which one company’s gain is achieved at another company’s loss. Hence, competition, the supply side of the equation, becomes the defining variable of strategy. Here, cost and value are seen as trade-offs and a firm chooses a distinctive cost or differentiation position. Because the total profit level of the industry is also determined by structural factors, firms principally seek to capture and redistribute wealth instead of creating wealth. They focus on dividing up the red ocean, where growth is increasingly limited.

Blue Ocean vs. Red Ocean

Many others have proposed similar strategies. For example, Swedish educators

The cornerstone of Blue Ocean Strategy is 'Value Innovation', a concept originally outlined in Kim & Mauborgne's 1997 article "Value Innovation - The Strategic Logic of High Growth" (Harvard Business Review 75, January–February 103-112).[6] Value innovation is the simultaneous pursuit of differentiation and low cost, creating value for both the buyer, the company, and its employees, thereby opening up new and uncontested market space. The aim of value innovation, as articulated in the article, is not to compete, but to make the competition irrelevant by changing the playing field of strategy. The strategic move must raise and create value for the market, while simultaneously reducing or eliminating features or services that are less valued by the current or future market. The Four Actions Framework is used to help create value innovation and break the value-cost trade-off. Value innovation challenges Michael Porter's idea that successful businesses are either low-cost providers or niche-players. Instead, blue ocean strategy proposes finding value that crosses conventional market segmentation and offering value and lower cost. Educator Charles W. L. Hill proposed a similar idea in 1988 and claimed that Porter's model was flawed because differentiation can be a means for firms to achieve low cost. He proposed that a combination of differentiation and low cost might be necessary for firms to achieve a sustainable competitive advantage.

Blue oceans, in contrast, denote all the industries not in existence today – the unknown market space, untainted by competition. In blue oceans, demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. Blue ocean is an analogy to describe the wider, deeper potential of market space that is not yet explored.[4][5]

Red oceans represent all the industries in existence today – the known market space. In the red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. Here companies try to outperform their rivals to grab a greater share of product or service demand. As the market space gets crowded, prospects for profits and growth are reduced. Products become commodities or niche, and cutthroat competition turns the ocean bloody; hence, the term red oceans.[4]

The metaphor of red and blue oceans describes the market universe.

Cirque du Soleil – an example of creating a new market space, by blending opera and ballet with the circus format while eliminating star performers and animals

Concept

The authors ask readers “What is the best unit of analysis of profitable growth? Company? Industry?” – a fundamental question without which any strategy for profitable growth is not worthwhile. The authors justify with original and practical ideas that neither the company nor the industry is the best unit of analysis of profitable growth; rather it is the strategic move that creates “Blue Ocean” and sustained high performance. The book examines the experience of companies in areas as diverse as watches, wine, cement, computers, automobiles, textiles, coffee makers, airlines, retailers, and even the circus, to answer this fundamental question and builds upon the argument about “Value Innovation” being the cornerstone of a blue ocean strategy. Value Innovation is necessarily the alignment of innovation with utility, price and cost positions. This creates uncontested market space and makes competition irrelevant. The following section discusses the concept behind the book in detail.

In the book the authors draw the attention of their readers towards the correlation of success stories across industries and the formulation of strategies that provide a solid base to create unconventional success – a strategy termed as “Blue Ocean Strategy”. Unlike the “Red Ocean Strategy”, the conventional approach to business of beating competition derived from the military organization, the “Blue Ocean Strategy” tries to align innovation with utility, price and cost positions. The book mocks at the phenomena of conventional choice between product/service differentiation and lower cost, but rather suggests that both differentiation and lower costs are achievable simultaneously.

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.[2][3]

  1. how to create uncontested market space by reconstructing market boundaries,
  2. focusing on the big picture,
  3. reaching beyond existing demand and
  4. getting the strategic sequence right.

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. The book uses many examples across industries to demonstrate how to break out of traditional competitive (structuralist) strategic thinking and to grow demand and profits for the company and the industry by using blue ocean (reconstructionist) strategic thinking. The four principles are:

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, the four actions framework and the eliminate-reduce-raise-create grid.

The book is divided into three parts:

Book layout and concepts

Contents

  • Book layout and concepts 1
  • Concept 2
    • Blue Ocean vs. Red Ocean 2.1
  • Preceding work 3
  • Examples 4
  • Tools and frameworks 5
  • See also 6
  • Reception 7
  • Criticisms 8
  • References 9
  • External links 10
[1]
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