Book Review

Blue Ocean Strategy

W. Chan Kim and Renée Mauborgne

Business/Strategy.

Blue Ocean Strategy is a business strategy book written by W. Chan Kim and Renée Mauborgne. The book is divided into three parts: Part One explains the concept of Blue Ocean Strategy and why it is important for businesses to create new markets instead of competing in existing ones. Part Two provides a framework for creating a Blue Ocean Strategy, including tools for identifying and developing new market opportunities. Part Three discusses the implementation of Blue Ocean Strategy and how to sustain it over time.
The authors argue that businesses should focus on creating new markets rather than competing in existing ones, which they refer to as “red oceans.” They suggest that businesses can create “blue oceans” by identifying and developing new market opportunities that are not yet being served. The authors provide numerous examples of companies that have successfully implemented Blue Ocean Strategy, including Cirque du Soleil, Southwest Airlines, and Yellow Tail wine.
The book’s themes include innovation, creativity, and strategic thinking. The authors encourage readers to think outside the box and challenge conventional wisdom. They also emphasize the importance of customer value and understanding the needs of the market.
The authors’ writing style is clear and concise, with numerous real-world examples to illustrate their points. They use charts and diagrams to explain their framework and make it easy to understand.
One of the things I enjoyed about this book was the emphasis on creating new markets rather than competing in existing ones. The authors provide a clear framework for identifying and developing new market opportunities, which I found very helpful. I would definitely recommend this book to anyone interested in business strategy or entrepreneurship.
Here are ten key takeaways from the book:
1. Businesses should focus on creating new markets rather than competing in existing ones.
2. The key to creating a Blue Ocean Strategy is to identify and develop new market opportunities.
3. Blue Ocean Strategy requires a shift in thinking from competition to innovation.
4. Blue Ocean Strategy is not just about creating new products or services, but also about creating new business models.
5. Blue Ocean Strategy requires a deep understanding of customer needs and preferences.
6. Blue Ocean Strategy is not just for startups, but can also be applied to established businesses.
7. Blue Ocean Strategy requires a willingness to take risks and experiment with new ideas.
8. Blue Ocean Strategy requires a commitment to continuous improvement and innovation.
9. Blue Ocean Strategy can be sustained over time by creating barriers to entry and building a strong brand.
10. Blue Ocean Strategy can lead to significant growth and profitability for businesses that successfully

Blue Ocean Strategy is a business strategy book written by W. Chan Kim and Renée Mauborgne. The book argues that companies should not try to compete in crowded, existing markets (red oceans), but instead create new, uncontested markets (blue oceans). The authors provide a framework for identifying and creating blue oceans, based on analyzing customer needs and behavior, as well as industry trends and factors. The book includes case studies of companies that have successfully implemented blue ocean strategies, and provides practical tools and techniques for readers to apply the concepts to their own businesses.

Blue Ocean Strategy is divided into three parts, each containing several chapters.
Part One: Blue Ocean Strategy: Creating Uncontested Market Space
Chapter 1: Creating Blue Oceans
This chapter introduces the concept of blue oceans and explains why they are important for businesses. It also compares and contrasts blue oceans with red oceans, which are characterized by intense competition.
Chapter 2: Analyzing the Market Environment
In this chapter, the authors describe the tools and frameworks that businesses can use to analyze their market environment and identify opportunities for creating blue oceans.
Chapter 3: The Six Paths Framework
The Six Paths Framework is a tool for identifying new market opportunities by looking at six different dimensions of a business’s market environment. This chapter explains how to use the framework and provides examples of companies that have successfully created blue oceans using this approach.
Chapter 4: Formulating Blue Ocean Strategy
This chapter explains how to formulate a blue ocean strategy by combining the insights gained from analyzing the market environment and using the Six Paths Framework.
Part Two: The Four Actions Framework
Chapter 5: The Four Actions Framework
The Four Actions Framework is a tool for creating a new value proposition that sets a business apart from its competitors. This chapter explains how to use the framework and provides examples of companies that have successfully used it to create blue oceans.
Chapter 6: Reconstruct Market Boundaries
This chapter explains how to reconstruct market boundaries by looking beyond the traditional industry boundaries and identifying new opportunities for creating value.
Chapter 7: Focus on the Big Picture, Not the Numbers
This chapter emphasizes the importance of focusing on the big picture when formulating a blue ocean strategy, rather than getting bogged down in the details of financial analysis.
Part Three: Executing Blue Ocean Strategy
Chapter 8: Overcoming Key Organizational Hurdles
This chapter discusses the organizational hurdles that businesses may face when trying to implement a blue ocean strategy and provides guidance on how to overcome them.
Chapter 9: Building Execution into Strategy
This chapter explains how to build execution into strategy by aligning the organization’s structures, systems, and processes with its blue ocean strategy.
Chapter 10: Renew Blue Oceans
This final chapter discusses how to sustain a blue ocean strategy over time by continually renewing and refreshing it to stay ahead of changing market conditions.

Chapter 1: Creating Blue Oceans
The authors introduce the concept of blue oceans, which are untapped market spaces where competition is irrelevant. They argue that companies should focus on creating blue oceans rather than competing in existing red oceans, where competition is fierce and profits are limited.
Chapter 2: Analyzing the Market Environment
The authors provide a framework for analyzing the market environment, including the six paths framework, which helps companies identify new market opportunities. They also discuss the importance of understanding buyer behavior and value innovation.
Chapter 3: Reconstructing Market Boundaries
The authors describe how companies can reconstruct market boundaries by looking beyond the existing industry boundaries and identifying new opportunities. They provide examples of companies that have successfully done this, such as Cirque du Soleil.
Chapter 4: Focusing on the Big Picture
The authors argue that companies should focus on the big picture rather than getting bogged down in details. They provide a framework for developing a compelling vision and strategy that can guide the company’s actions.
Chapter 5: Reaching Beyond Existing Demand
The authors discuss the importance of creating new demand rather than simply competing for existing demand. They provide examples of companies that have successfully created new demand, such as Nintendo with its Wii console.
Chapter 6: Getting the Strategic Sequence Right
The authors argue that companies must get the strategic sequence right in order to succeed in creating a blue ocean. They provide a framework for doing so, which includes focusing on noncustomers, creating a compelling tagline, and building execution into strategy.
Chapter 7: Overcoming Key Organizational Hurdles
The authors discuss the organizational hurdles that companies must overcome in order to successfully implement a blue ocean strategy. They provide strategies for overcoming these hurdles, such as building a team of champions and creating a culture of trust and collaboration.
Chapter 8: Building Execution into Strategy
The authors argue that execution is just as important as strategy in creating a blue ocean. They provide a framework for building execution into strategy, which includes creating a fair process, aligning resources with strategy, and creating a culture of accountability.
Chapter 9: Renewing Blue Oceans
The authors discuss the importance of continuously renewing blue oceans in order to maintain a competitive advantage. They provide strategies for doing so, such as creating a learning organization and constantly experimenting with new ideas.

1. “Instead of focusing on beating the competition, 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.”
2. “Blue ocean strategy is about creating new market space through value innovation. It is about creating and capturing uncontested market space, thereby making the competition irrelevant.”
3. “The cornerstone of blue ocean strategy is the simultaneous pursuit of differentiation and low cost.”
4. “The most fundamental challenge facing companies is not a shortage of good strategic ideas but a shortage of people who can carry them out.”
5. “Blue ocean strategy is not about technology innovation. It is about value innovation.”
6. “Blue ocean strategy is not a search for a sustainable competitive advantage, but a search for a sustainable value innovation.”
7. “The key to creating a blue ocean is to focus on the big picture, not the details.”
8. “The most successful companies are those that create a blue ocean and then defend it through continuous innovation.”

Introduction:
– The traditional approach of competing in existing markets is no longer sustainable in today’s business world.
– Blue Ocean Strategy offers a new approach of creating uncontested market space, or “blue oceans,” rather than fighting over the same customers in a crowded market.
Chapter 1: Creating Blue Oceans:
– Blue oceans are created by offering a unique value proposition that attracts new customers and creates demand.
– The four actions framework can help companies create a blue ocean strategy by identifying factors to eliminate, reduce, raise, and create.
Chapter 2: Analyzing the Current Market:
– Companies often focus too much on their competitors and fail to see the bigger picture of the market.
– The six paths framework can help companies identify new opportunities by looking at alternative industries, strategic groups, buyer groups, complementary products and services, functional and emotional appeal, and time.
Chapter 3: Reconstructing Market Boundaries:
– Companies can break out of traditional market boundaries by focusing on the buyer experience, offering a range of complementary products and services, and redefining the scope of the industry.
– The authors provide examples of companies that successfully created new market spaces by breaking down boundaries.
Chapter 4: Focus on the Big Picture:
– Blue ocean strategy requires a long-term perspective and a willingness to invest in creating new market spaces.
– Companies must focus on creating value for customers rather than just maximizing profits.
Chapter 5: Execution of Blue Ocean Strategy:
– Successful execution of a blue ocean strategy requires a clear understanding of the customer value proposition, effective communication and implementation, and continuous improvement.
– The authors provide a step-by-step guide for executing a blue ocean strategy.
Conclusion:
– Blue Ocean Strategy offers a new approach to business strategy that can help companies create uncontested market space and achieve sustained growth.
– It requires a shift in mindset and a willingness to challenge traditional assumptions about competition and market boundaries.

The Blue Ocean Strategy suggests that businesses should focus on creating new markets or “blue oceans” rather than competing in existing markets or “red oceans.” The authors provide actionable steps for creating a blue ocean strategy, including:
1. Identify the factors that customers value in your industry and the factors that are taken for granted.
2. Identify the factors that your industry competes on and the factors that your industry should eliminate or reduce.
3. Identify the factors that your industry should create or increase to create a new market.
4. Create a strategy canvas to visualize the changes you will make to your industry.
5. Develop a value proposition that focuses on the unique factors that your industry will create or increase.
6. Test your blue ocean strategy with a small market before scaling up.
The practical applications of the Blue Ocean Strategy are relevant for any business looking to differentiate themselves from competitors and create new markets. The authors provide numerous case studies of companies that have successfully implemented a blue ocean strategy, including Cirque du Soleil, Southwest Airlines, and Yellow Tail wine. The actionable steps provided by the authors can be applied to any industry and can help businesses break out of the red ocean of competition and create new opportunities for growth.

Example 1: Cirque du Soleil
One of the most famous examples in the book is Cirque du Soleil, which is a great illustration of the blue ocean strategy. The circus industry was a red ocean, with many competitors fighting for a share of the market. However, Cirque du Soleil created a new market space by combining elements of traditional circuses with theater and dance. As a result, they attracted a new audience and were able to charge higher prices than traditional circuses.
Example 2: Yellow Tail Wine
Another example in the book is Yellow Tail Wine, which was able to create a blue ocean in the wine industry. The wine market was a red ocean, with many established players competing for market share. Yellow Tail differentiated itself by creating a wine that was easy to drink, had a fun and approachable brand, and was priced affordably. As a result, they were able to attract a new audience of wine drinkers who had previously been intimidated by the complexity of the wine industry.
Example 3: Southwest Airlines
Southwest Airlines is another example of a company that was able to create a blue ocean in the airline industry. The airline industry was a red ocean, with many established players competing on price and service. Southwest differentiated itself by focusing on low-cost, no-frills travel and creating a fun and friendly brand. As a result, they were able to attract a new audience of budget-conscious travelers who were willing to sacrifice some amenities for a lower price.

In Blue Ocean Strategy, Kim and Mauborgne present a framework for creating uncontested market space and making the competition irrelevant. They argue that companies should focus on creating new demand rather than competing for existing demand in overcrowded markets. The authors provide a step-by-step process for creating a blue ocean strategy, which involves identifying the factors that industry rivals take for granted and eliminating them, as well as identifying the factors that the industry has never offered and creating them.
The key insights from this book are:
1. The importance of creating new demand: Companies should focus on creating new demand rather than competing for existing demand in overcrowded markets. This involves identifying unmet customer needs and creating products or services that address those needs.
2. The need to eliminate industry conventions: Companies should identify the factors that industry rivals take for granted and eliminate them. This involves questioning industry assumptions and challenging the status quo.
3. The importance of creating new factors of value: Companies should identify the factors that the industry has never offered and create them. This involves thinking outside the box and being innovative in product development.
4. The need to align the whole system: Companies should align their entire organization around the blue ocean strategy. This involves ensuring that all aspects of the company, from strategy to operations, are aligned with the new strategy.
Overall, Blue Ocean Strategy provides a valuable framework for companies looking to innovate and create new markets. By focusing on creating new demand, eliminating industry conventions, and creating new factors of value, companies can create uncontested market space and make the competition irrelevant.

Blue Ocean Strategy is a groundbreaking business book written by W. Chan Kim and Renée Mauborgne. The book challenges traditional business thinking by advocating for the creation of “blue oceans,” which are untapped markets with little to no competition.
Kim and Mauborgne argue that businesses should focus on creating new markets rather than competing in existing ones. They provide a framework for identifying and creating blue oceans, which involves identifying key factors that customers value and innovating to create a new market space.
The book is filled with real-world examples of companies that have successfully implemented the blue ocean strategy, such as Cirque du Soleil and Southwest Airlines. It also provides practical tools and techniques for businesses to implement the strategy themselves.
Overall, Blue Ocean Strategy is a must-read for anyone interested in business strategy and innovation. It challenges conventional thinking and provides a fresh perspective on how businesses can succeed in today’s competitive marketplace.

Overall, Blue Ocean Strategy is a highly insightful and practical book that offers a fresh perspective on business strategy. The authors provide a clear framework for identifying and creating new markets and value propositions, and they back it up with numerous real-world examples and case studies.
One of the strengths of the book is its emphasis on innovation and creativity as key drivers of business success. The authors argue that by focusing on creating new demand rather than competing in existing markets, companies can achieve sustainable growth and profitability.
Another strength of the book is its practicality. The authors provide a step-by-step guide for implementing the Blue Ocean Strategy framework, including tools and techniques for conducting market research, identifying customer needs, and developing new value propositions.
Overall, I would highly recommend Blue Ocean Strategy to anyone interested in business strategy and innovation. It offers a valuable perspective on how to create new markets and value propositions, and it provides practical guidance for putting these ideas into practice.