Blue Ocean Strategy

Synopsis

OVER 4 MILLION COPIES SOLD
WALL STREET JOURNAL AND BUSINESSWEEK BESTSELLER
RECOGNIZED AS ONE OF THE MOST ICONIC AND IMPACTFUL STRATEGY BOOKS EVER WRITTEN

The global phenomenon that has sold over 4 million copies, is published in a record-breaking 49 languages and is a bestseller across five continents-now updated and expanded with new content. Named by Fast Company as one of the most influential leadership books in its Leadership Hall of Fame. A strategy classic.

In this perennial bestseller, embraced by organizations and industries worldwide, globally preeminent management thinkers W. Chan Kim and Renée Mauborgne challenge everything you thought you knew about the requirements for strategic success. Recognized as one of the most iconic and impactful strategy books ever written, BLUE OCEAN STRATEGY, now updated with fresh content from the authors, argues 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.

BLUE OCEAN STRATEGY presents a systematic approach to making the competition irrelevant and outlines principles and tools any organization can use to create and capture their own blue oceans. This expanded edition includes:

• A new preface by the authors: Help! My Ocean Is Turning Red
• Updates on all cases and examples in the book, bringing their stories up to the present time
• Two new chapters and an expanded third one-Alignment, Renewal, and Red Ocean Traps-that address the most pressing questions readers have asked over the past 10 years

A landmark work that upends traditional thinking about strategy, this bestselling book charts a bold new path to winning the future. Consider this your guide to creating uncontested market space-and making the competition irrelevant.

To learn more about the power of BLUE OCEAN STRATEGY, visit blueoceanstrategy.com. There you'll find all the resources you need-from ideas in practice and cases from government and private industry, to teaching materials, mobile apps, real-time updates, and tips and tools to help you make your blue ocean journey a success.

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Summary

Chapter 1: The Concept of Blue Ocean Strategy

Blue Ocean Strategy argues that businesses should focus on creating new markets rather than competing in existing ones (red oceans). This involves creating unique value propositions that are both differentiated and low-cost, thereby creating a "blue ocean" of uncontested market space.

Example: Cirque du Soleil created a blue ocean in the entertainment industry by offering circus shows that combined acrobatic skills with theatrical storytelling.

Chapter 2: The Tools of Blue Ocean Strategy

The book introduces four key tools for creating blue oceans: value innovation, the strategy canvas, the four actions framework, and the fair process test. These tools help businesses identify market opportunities, develop winning strategies, and mitigate potential risks.

Example: Nintendo created the Wii video game console using value innovation, which resulted in a low-cost, intuitive device that appealed to a broader audience.

Chapter 3: Reconstruct Market Boundaries

Businesses need to challenge the boundaries of their existing markets by redefining the competition, changing customer focus, and creating new value curves that meet unmet customer needs.

Example: Netflix disrupted the video rental industry by redefining competition from Blockbuster to streaming services and offering a subscription-based, convenient experience.

Chapter 4: Focus on the Big Picture, Not the Numbers

Blue Ocean Strategy emphasizes the importance of thinking holistically about a business's operations rather than focusing on short-term financial results. This requires aligning all aspects of the organization towards creating a unique value proposition.

Example: Google prioritizes innovation and user experience, resulting in long-term success despite not initially focusing on profitability.

Chapter 5: The Six Principles of Blue Ocean Strategy

The book outlines six principles for creating successful blue oceans:

1. Create a compelling value proposition: Offer a unique combination of value and low cost.
2. Focus on the "non-customer": Identify customers who are not currently served by your competitors.
3. Make the competition irrelevant: Create a new market that is different from the existing ones.
4. Break the value-cost trade-off: Offer high value at a low cost.
5. Align the entire system: Ensure that all aspects of the business support the blue ocean strategy.
6. Override key organizational hurdles: Address any internal resistance or obstacles that may hinder implementation.

Chapter 6: The Five Steps to Blue Ocean Creation

The book provides a step-by-step guide to creating blue oceans:

1. Reject the conventional wisdom: Challenge existing industry norms and assumptions.
2. Create a visual representation of your existing and potential markets: Use the strategy canvas to identify opportunities.
3. Generate blue ocean ideas: Explore unconventional approaches to value innovation.
4. Prioritize and choose a blue ocean idea: Select the most promising concept based on its value proposition and potential growth.
5. Develop an action plan to make your blue ocean strategy a reality: Outline the steps necessary to implement and scale the new market.

Chapter 7: The Power of Blue Ocean Strategy

The book concludes by highlighting the potential benefits of blue ocean thinking, including increased revenue, higher profit margins, and reduced competition.

Example: Amazon Web Services (AWS) created a blue ocean in the cloud computing industry by offering scalable, pay-as-you-go computing and storage services, revolutionizing the way businesses operate online.