Book Category: Business, Entrepreneurial,

Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant (book summary)

Author: W. Chan Kim, Renee Mauborgne,
Life Changing Principles
8.0
Quality of Writing
7.5
Overall Value
8.0
pros: Helpful for businesses, offers a good way to focus on the important
cons: Very high level
78.3%
overall rating
7.8

QUICK SUMMARY: A blue ocean, as described in Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant, is a market space that is undeveloped, and untapped by competitors. Blue Ocean Strategy proposes that businesses can have more success by creating a blue ocean, rather than trying to compete in the red ocean – the traditional market space that is filled with feuding competitors. Using in-depth research, and great case studies, such as Cirque du Soleil, and [yellow tail] wine, Blue Ocean Strategy proves that great businesses can be built by reimagining an entire industry.

We are fans of the concepts presented in Blue Ocean Strategy, however we think that the material could be simplified, as well as more effectively visually represented. Those weaknesses aside, we still recommend this book to savvy business professionals who are ready to take a leap into a new territory for their business.

KEY INSIGHTS:

1. Don’t try to outperform competitors.

2. Create a new market space to make competitors irrelevant.

3. Value innovation is the key to creating a blue ocean strategy

4. Value innovation simultaneously pursues low cost, and differentiation.

PRACTICAL APPLICATION:

Ask yourself these questions to develop a blue ocean strategy:

– What factors of your industry are taken for granted, and can be eliminated?
– Which factors of your industry can be reduced below industry standards?
– Which factors should be raised above industry standards?
– What new factors that have never been offered can be created?

MEANINGFUL QUOTES:

The only way to beat the competition is to stop trying to beat the competition.

To focus on the red ocean is therefore to accept the key constraining factors of war—limited terrain and the need to beat an enemy to succeed—and to deny the distinctive strength of the business world: the capacity to create new market space that is uncontested.

To fundamentally shift the strategy canvas of an industry, you must begin by reorienting your strategic focus from competitors to alternatives, and from customers to noncustomers of the industry.

Interested? Buy the book here!