Provide inspiring concepts and the steps for creating blue ocean strategy.
the book does a good job at explaining that traditional industry analysis (red ocean strategy ala porter) is not the only viable strategy. it provided numerous examples of blue ocean strategy in which the rules of the game are changed. the analytic framework to analyze bue oceans is easy to grasp and provides a good way to understand value innovations with hindsight. it is however less obvious whether the framework is also powerful enough to actually allow companies to innovate and create new blue oceans.
i read the corresponding hbr articles a couple of years ago and the book provides a nice summary and overarching framework. the additions, such as the last couple of chapters on strategy implementation and execution are probably the weakest part of the book, and do not get beyond trivialities such as 'in order to get to success, it is important to get buy-in early on'
Wow! I loved this book. It gave me a perspective on which companies from the past and which companies today create themselves in an elevated category higher than all the rest. Some corporations are stuck in price war syndromes while others soar so far beyond and are so successful they can’t be compared. Why is that?
Red Oceans vs. Blue Oceans
Some companies exist in self-created oceans filled with sharks and barracudas that attack each other through competition. This fills their relations with blood making them red oceans. Other companies devise and develop a system singular to the products and services they are offering. They are so far ahead of other companies that they swim alone in a clear field, in a “Blue Ocean.” The purpose of this book is to delineate Blue Oceans and to provide a strategy to put your company so far ahead of the competition, that there is no competition.
How to do this?
Value innovation is the key. The authors say:
“Value innovation is the cornerstone of blue ocean strategy. We call it value innovation because instead of focusing on beating the competition, you focus on making the competition irrelevant by creating a leap in value for the buyer and your company, thereby opening up new and uncontested market space.”
In effect, your company finds, opens, and develops the blue ocean and then swims uncontested through it because your service or products are new and they provide outstanding . . . or at least considerably more . . . value . . . than anyone else. There is simply no competition.
The Blue Ocean Strategy
How to reconstruct market boundaries to break from competition and create blue oceans.
The Six Paths
• Look across alternative industries. What are the alternative industries to your industry? Why do customers trade across them?
• Look across strategic groups within industries. Why do customers trade up for a higher group? Why do they trade down for a lower group?
• Look across the Chain of Buyers. What is the chain of buyers in your industry? Which group does your industry typically focus on? Can you unlock new value?
• Look across complementary product and service offerings. Untapped value is hidden in complementary products and services. What is the context in which your product or services is used?
• Look across functional or emotional appeal to buyers. If you compete on emotional appeal, what elements can you take out to make it functional? If you compete on function, what can you take out to make it emotional?
• Look across time. What trends will impact your industry. Are they reversible or evolving in a true direction? Can you open a new customer utility?
Using this strategy companies can invent or reinvent themselves. Using value innovation they create the blue ocean and swim beyond the competition.
Blue Ocean Strategy is now a classic must read book. It’s a fascinating, enjoyable read. If you don’t read this book you will be left behind. The world is changing very, very fast. I give this book five stars. It really is a book you have to read. Buy it.
Value innovation is what we’re about at our company. We develop new products and solutions. We invite you to follow us as we develop our ‘Blue Ocean’ strategy.
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This book was translated in dozens of languages, so, it gotta be good, right? It is good, as it managed to put forth the concept and framework of blue ocean through many lively examples. I found the canvas, grid and the action framework quite inspiring and has certainly put certain business case studies in perspective for me.
However, it does feel that the authors are trying to fit the examples into the their particular theory. The only major problem I have is that, it does not quite tell me whether blue ocean strategy can fail. OK, Cirque du Soleil was a success that fitted the model, and if there is an updated edition of the book, the Nintendo Wii would fit nicely too. But there were no examples or cases to show that companies failed while "swimming" in the blue ocean.
Still, the concept does stick well to the back of my mind. It is a good book, but it is not serious enough to be put along side scientific management theories....Continua