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Blue Ocean Strategy: How To Create Uncontested Market Space And Make The Competition Irrelevant Hardcover – Feb 1 2005


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Product Details

  • Hardcover: 256 pages
  • Publisher: Harvard Business Review Press; 1 edition (Feb. 1 2005)
  • Language: English
  • ISBN-10: 1591396190
  • ISBN-13: 978-1591396192
  • Product Dimensions: 2.5 x 15.9 x 21.6 cm
  • Shipping Weight: 522 g
  • Average Customer Review: 4.4 out of 5 stars  See all reviews (10 customer reviews)
  • Amazon Bestsellers Rank: #21,408 in Books (See Top 100 in Books)

Product Description

From Publishers Weekly

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.
Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.

Review

“This breakthrough book is essential for any strategist or entrepreneur who wants to move out of intensively competitive, shark-infested waters and into an opportunity- filled, open ocean.” — Business Insider

Inside This Book (Learn More)
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A ONE TIME ACCORDION PLAYER, stilt-walker, and fire-eater, Guy Laliberte is now CEO of Cirque du Soleil, one of Canada's largest cultural exports. Read the first page
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8 of 8 people found the following review helpful By Donald Mitchell #1 HALL OF FAMETOP 50 REVIEWER on July 15 2006
Format: Hardcover
The authors looked at the business launches of 108 companies, and found that those which emphasized serving competitively uncontested customer needs were only 14 percent of the cases. Yet those "blue ocean" launches accounted for 61 percent of the total profits (or almost 10 times as many profits on average per launch as those who went after "red oceans," where competitive space is already served).

Rather than examining the processes that companies used to create these wins, the authors investigated the common strategic elements of the "blue ocean" cases they found, and developed a strategic planning process designed to focus on those elements. In the last 15 years, they have experimented with that process with a number of consulting clients and now report the results of their latest refined process.

They propose four principles formulate a strategy:

1. Reconstruct market boundaries

2. Focus on the big picture, not the numbers

3. Reach beyond existing demand

4. Get the strategic sequence right.

They also propose two principles to implement strategy:

5. Overcome key organizational hurdles

6. Build execution into strategy.

For applying each of the strategic principles, the authors describe different paths and steps, and provide simple, analytical tools designed to be applied in a back-of-the-envelope analysis.

1.
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7 of 7 people found the following review helpful By Ian Robertson TOP 100 REVIEWER on Dec 18 2011
Format: Hardcover
Logical, clearly written (though buzz words abound), and engaging, it's no wonder Blue Ocean Strategy was such a bestseller. Because they inevitably focus on innovative products or services (the authors use the term 'value innovation') that seemingly appear out of the blue to take a market by storm or to create a new market altogether, Blue Ocean Strategies (BOS) make the most compelling of stories. Unfortunately, the theory is weak for two reasons: the examples given, while interesting, are largely exercises in data-mining; and second, BOSs can only apply to a very, very small percentage of the market place, or else there would be no mainstream or conventional business in the first place.

Early in the book the authors talk about the certainty of the Euro's development as a currency: "... the euro has been evolving along a constant trajectory as it has been replacing Europe's multiple currencies. It is a decisive, irreversible, and clearly developing trend in financial services upon which blue oceans can be created as the European Union continues to enlarge." Current events have proved the authors dead wrong, and I cite the passage not to be nit-picky, but rather to illustrate the unscientific nature of the methodology. Examples are drawn selectively to prove a thesis. They appear to provide insight and are enjoyable to read - in fact may actually spur some of us to the desired results - but the book has little chance of a lasting impact on organizational behaviour or the academic body of knowledge.

In another example, the authors cite a purported mistake by genetically modified food maker Monsanto, in which they claim that had Monsanto educated environmental groups of the benefit of genetically modified foods, their company would have been hailed as heroes rather than pariahs.
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2 of 2 people found the following review helpful By Donald Mitchell #1 HALL OF FAMETOP 50 REVIEWER on Dec 6 2008
Format: Audio CD
The authors looked at the business launches of 108 companies, and found that those which emphasized serving competitively uncontested customer needs were only 14 percent of the cases. Yet those "blue ocean" launches accounted for 61 percent of the total profits (or almost 10 times as many profits on average per launch as those who went after "red oceans," where competitive space is already served).

Rather than examining the processes that companies used to create these wins, the authors investigated the common strategic elements of the "blue ocean" cases they found, and developed a strategic planning process designed to focus on those elements. In the last 15 years, they have experimented with that process with a number of consulting clients and now report the results of their latest refined process.

They propose four principles formulate a strategy:

1. Reconstruct market boundaries
2. Focus on the big picture, not the numbers
3. Reach beyond existing demand
4. Get the strategic sequence right.

They also propose two principles to implement strategy:

5. Overcome key organizational hurdles
6. Build execution into strategy.

For applying each of the strategic principles, the authors describe different paths and steps, and provide simple, analytical tools designed to be applied in a back-of-the-envelope analysis.

1. Reconstruct market boundaries

Paths for this part of the process include looking across functional substitutes from other industries, different segments within an existing industry, different linked sets of buyers and buying influencers, complementary offerings, availability of functional versus emotional appeals, and extend the time perspective for a longer period.
Read more ›
Was this review helpful to you? Yes No Sending feedback...
Thank you for your feedback. If this review is inappropriate, please let us know.
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