 | |
 View Larger |
Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant By W. Chan KimRenée Mauborgne ( Harvard Business School Press )
Release Date: 2005-02-03
Average Customer Rating:
List Price: $29.95
Price: $19.77
Eligible for FREE Super Saver Shipping on orders over $25.
Availability: Usually ships in 24 hours
|  Add to Cart |
|
|
Product Description
Winning by Not Competing: A Fresh Approach to Strategy Since the dawn of the industrial age, companies have engaged in head-to-head competition in search of sustained, profitable growth. They have fought for competitive advantage, battled over market share, and struggled for differentiation. Yet these hallmarks of competitive strategy are not the way to create profitable growth in the future. In a book that challenges everything you thought you knew about the requirements for strategic success, W. Chan Kim and Renée Mauborgne argue 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 a hundred years and thirty industries, the authors argue that lasting success comes not from battling competitors, but from creating "blue oceans": untapped new market spaces ripe for growth. Such strategic moves-which the authors call "value innovation"- create powerful leaps in value that often render rivals obsolete for more than a decade. Blue Ocean Strategy presents a systematic approach to making the competition irrelevant and outlines principles and tools any company can use to create and capture blue oceans. A landmark work that upends traditional thinking about strategy, this book charts a bold new path to winning the future. W. Chan Kim is the Boston Consulting Group Bruce D. Henderson Chair Professor of Strategy and International Management at INSEAD. Renée Mauborgne is the INSEAD Distinguished Fellow and Professor of Strategy and Management.
|
|
The mother of reinvention...
This book helps focus the reader on looking at their business, competition and offerings in different and exciting ways. If you are considering a new business venture or product offering, you really should read this book.
|
 Strategy will always include opportunity and risk ( goldenlionkempo )
Strategy:
1. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. Companies need to go beyond competing. To seize new profit and growth opportunities, they also need to create blue oceans.
2. Put the clock forward 20 to 50 years and ask yourself how many unknown industries will exist. Surprisingly, many of the unknown industries will exist.
3. Value innovation is focusing on making competition irrelevant by creating a leap in value for your buyers and you company, thereby opening up new and uncontested market space.
4. Value innovation is neither cutting edge technology nor timing of the market. Value innovation occurs when companies align with utility, price, and cost positions. "If the companies fail to anchor innovation with value in this way, technology innovators and market pioneers often lay eggs that other companies hatch."
5. Blue ocean innovation seeks differentiation and low cost simulataneously. The goal is too drive costs down while simulataneously driving value up for buyers.
6. Utility alignment starts at the top. Production innovation may improve subsystem performance without impacting the company's overall strategy. The production costs savings do not realign the utility proposition of the company. The product cost saving reinforce strategic leadership validating the status quo. "Although innovations of this sort may help to secure and even lift a company's position in the existing market space, such a subsystem approach will rarely create a blue ocean of new market opportunity." Market opportunity results from changing the utility proposition.
7. Red ocean strategy assumes that an industrial structural condition are given and that firms are forced to compete within them, a structuralist or environmental determinism view. In contrast, value innovation is based on the view that market boundaries and industry structure are not given and can be reconstructed by actions and beliefs of industry players.
8. In red ocean, differentiation costs because fimrs compete with the same best practice rule. In recontructionist world, the strategic aim is to create new best-practice rules by breaking the existing value cost trade-off and thereby create a blue ocean.
9. Strategy will always include opportunity and risk.
New markets:
1. How to conceive a new market space: a. Look across alternative industries b. look across strategic groups within industries c. redefine the industry buyer group d. look across to complementary product and services e. rethink the functional-emotional orientation of the industry f. participate in shaping external trends over time.
2. Emotionally oriented industries offer many extras that add price without enhancing functionality. Stripping away these extras may create a fundamentally simpler, lower-priced, lower-cost business model that customer will welcome.
3. Products and services that have different forms but offer the same functionality are substitutes for each other. Alternatives include products and services that have different functions and form but serve the same purpose. Alternatives are broader than substitutes.
4. A strategic group is a group of companies within an industry that pursue a similar strategy. Strategic groups can be ranked in a rough hierarchy according to price and performance. Most companies focus on improving their competitive position within a strategic group. "The key to creating a blue ocean across existing strategic groups is to break out of this narrow tunnel vision by understanding which factors determine customer decisions to trade up or down from one group to another."
5. Individual companies in an industry often target different customer segments. An industry typically converges on a single buyer group. "Challenging an industry's conventional wisdom about which buyer group to target can lead to the discovery of new blue oceans."
6. Untapped value is often hidden in complementary products and services. The key is to define the total solution buyers seek when they choose a product or service. A simple way is to think about what happens before, during, and after your product is used.
7. All industries are subject to external trends that affect their businesses over time. Looking at these trends with the right perspective can show you how to create blue ocean opportunities. Most companies adapt incrementally or passively as events emerge. They pace their own actions to keep up with the development of the trend they are tracking. Key insights occur by discovering how trends will change value to the customer and impact the company's business model. Look for the value a market will deliver today to the value it will deliver tomorrow - "managers can actively shape their future and lay claim to a new blue ocean." The trends must be decisive to your business; they must be irreversible; and they must have a clear trajectory
|
Blue Ocean
About half way through. Not a book you can't put down but good airplane reading. Makes you think about different strategies so worth it.
|
Worth Understanding the Principles in this Book ( stigga47 )
The theories and stories in this book should be read by anyone currently a part of running a business. Essentially, a blue ocean is a new market that reaches out to a population not contemplated by the current companies in an existing market. The authors warn companies to get out of the red oceans where daily and bloody battles for market share and new customers occur each day and encourages readers to create a new market, where untapped customers will be drawn in and competition becomes irrelevant because there are no more players in the game. This means changing the status quo, something that is hardly easy, but is critical in remaining competitive in today's global market. This book is a quick read and the ideas and strategies are worth understanding and applying.
|
Blue Ocean is a must Read
Good Book and a must read for anyone starting a Business or a new venture.
|
|
|
