Six Pixels of Separation - The Blog
May 11, 2005 6:57 AM

Blue Ocean Strategy

A friend of mine (thanks Chris) pointed out a book called, Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant by W. Chan Kim, Renée Mauborgne as being one of the best business books out there. I immediately placed my Amazon.com order.

Since I was introduced to Blue Ocean Strategy, I've come across a lot of publicity for the book as it begins to pick up steam. Most recently there was this post, Blue Ocean Strategy At MCN, from the 800-CEO-Read Blog which pointed to the article, How to Make Your Competition Irrelevant - Meet the MasterMinds: W. Chan Kim and Renée Mauborgne, at MCNews (Management Consulting News).

I'm really itching to read Blue Ocean Strategy.

Here's the editorial review from Publisher's Weekly, which I grabbed from Amazon.com:

"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."

Goggles and nose plug are prepared to take the plunge.

This will definitely be a Montreal Business Book Club selection in the coming months.

By Mitch Joel


Comments Comments Feed
  • Posted by TRU Group
    Mitch Joel

    While it is refreshing to have new books being published on strategic planning this one “Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant� is a re-hash of old ideas. There is not much new in this book but its proposition is dangerous if misinterpreted by strategists. As strategic plan consultants we are now asked for leading processes focused on blue oceans. “Make Competition Irrelevant� – oh please ?????

    TRU Group Inc
    Activating you StrategicMindset

    Reply
  • Posted by Robert Alan
    Mitch Joel

    Anyone who think competition is not relevant is asking for trouble. Granted, we can impact the competition but NEVER think it not relevant!!!

    Reply
  • Posted by Robert Schmidt
    Mitch Joel

    I think that one who fully understands "Blue Ocean Strategies" understands the context for "making the competition irrelevant". If you read the book you will learn that competition is the reason for creating a blue ocean. It's finding that untapped opportunity which will give you enormous value. Don't believe however that competition won't find you. Blue oceans will eventually become red until you create another blue.

    Just look at Southwest Airlines. They created the discount airline but could not prevent all the other copycat's from entering. Blue Ocean Strategy is a great framework for finding those opportunities and reducing costs... but don't think that it's a one time activity.

    Reply
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