The classic example used in the first book and the extended version is Cirque du Soleil. Or they simply extended an existing business model to create a product/service differentiation rather than a new market space. However, when digging a bit deeper we can see that each of the businesses were quite special from the outset. The book is full of examples of successful Blue Ocean strategies which on face value are inspirational and helpful. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. There is opportunity for growth that is both profitable and rapid. In blue oceans the demand is created so there is no need to fight over space. The market that does not yet exist. This market is untainted by competition. Products and services become commodities and cutthroat competition turns the ocean bloody hence, the term “red oceans”.īlue oceans, in contrast, denote the uncontested market space. As the market gets crowded, the prospect of profit and growth diminishes. Companies try to outperform each other and gain a greater share of product or service demand. In a red ocean, an industry sector boundary is defined and accepted. Easier said than done.Ĭhan Kim and Mauborgne use the metaphor of red and blue oceans to describe the market. Red oceans represent the known market space. In other words to look at areas where your competition is not looking and and to provide extensions to your products or services to attack those markets. The central tenet of the Blue Ocean Strategy is to ‘create ″blue oceans″ of uncontested market space’. The latest revised version of the book was published in 2015. But only time would prove whether or not they had created a new way to look at strategy or simply repackaged existing techniques and processes. So why has it taken so long to write a review for this book? It was clear from the outset that the authors were on to something special. Chan Kim and Renée Mauborgne – Professors at INSEAD and co-directors of the INSEAD Blue Ocean Strategy Institute. The Blue Ocean Strategy was published in 2005 and authored by W.
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