TITLE: BLUE OCEAN STRATEGY
AUTHOR: W. CHAN KIM and RENEE MAUBORGNE
GENRE: BUSINESS MANAGEMENT
“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 buyers and your company, thereby opening up new and uncontested market space. Value innovation places equal emphasis on value.”
Blue Ocean Strategy, How to Create Uncontested Market and Make Competition Irrelevant.This is a thought provoking book as so many others.Blue ocean challenges companies to step out of the bloody competition by creating their market space that renders competition irrelevant.The book is realistic as it goes further to show companies on how to achieve this.They insist on the positioning of one’s company away from the common ‘red ocean’ to less concentrated ‘blue ocean’ can reap immense returns for any investor.The well-written and easy to read
The book is realistic as it goes further to show companies on how to achieve this.They insist on the positioning of one’s company away from the common ‘red ocean’ to less concentrated ‘blue ocean’ can reap immense returns for any investor.The well-written and easy to read book is an eye opener for less sophisticated entrepreneurs or bosses who have minimal knowledge of competitive advantage.
‘There is no instance of a nation benefiting from prolonged warfare’-Sun Tzu.Don’t compete with rivals , make them irrelevant.To put your energy on the red ocean is thus accepting the constraining factors and deny the prominent strengths in the business world. Value Innovation: Creators of Blue Ocean do not use competition as their benchmark. What consistently separated the winners from the losers in creating blue oceans was their approach to strategy. It is called Value Innovation because instead of focusing on beating competition (Red Ocean), one focuses on making the competition irrelevant (Blue Ocean) by creating a leap for buyers and the company, thereby opening up new and uncontested market space. Innovation without value tends to be technology driven, market pioneering or futuristic, often shooting beyond what buyers are willing to accept and pay for. Value innovation occurs when companies align innovation with utility, price and c0st positions.
The examples used to illustrate the authors’ thinking will be familiar to you, and it’s interesting in hindsight to see how each of these companies was able to free itself from industry constraints. For instance, Dell decided to customize each computer to the individual consumer—opposite of what other manufacturers were doing at the time. This created new value for customers and added the experience of creating their new computer to the process of buying a computer. This type of “value innovation” e.g., examining the entirety of a company’s activities and identifying a way to create a jump in value for both customers and the company itself is the core of this book.
This business standard is worth rereading particularly as the nature of competition continues to evolve. The success of this book was from how the authors define the new term “Blue Ocean” which is easy to understand comparing to the opposite “Red or Bloody Ocean. Will I recommend this book? Yes because I am tired of the normal Company A vs. Company B type of games within the bloody red pool of competition. I think I am ready to swim to a fresh blue ocean.