<em>After just under 12 months in print, Blue Ocean Strategy has become an established worldwide best seller, and is being published into 30 languages. Over 2005, it has been voted as one of Amazon's 10 Top Ten Business Books; #1 Strategy Book by Strategy + Business, Booz Allen & Hamilton's leading business magazine; and a Wall Street Journal and Business Week Bestseller.</em>
Companies have long engaged in head-to-head competition in search of sustained, profitable growth. They have fought for competitive advantage, battled over market share, and struggled for differentiation. Yet in today's overcrowded industries, competing head-on results in nothing but a bloody "red ocean" of rivals fighting over a shrinking profit pool.
In a book that challenges everything previously known about the requirements for strategic success, INSEAD professors W. Chan Kim and Renée Mauborgne, contend that while most companies compete within such red oceans, this strategy is increasingly unlikely to create profitable growth in the future.
For the past 25 years academics and consultants have developed an impressive array of tools and frameworks to compete in red oceans, such as the five forces to analyze existing industry conditions and three generic strategies. Yet the field has remained virtually silent on practical tools to excel in blue oceans. Instead, executives have received calls to be brave, to celebrate failure, and to seek out revolutionaries. While thought provoking, these are hardly substitutes for practical analytics to navigate successfully in blue oceans and in their absence, executives cannot be expected to act on the call to break out of existing competition.
A frequent criticism of business literature is that while big on ideas, it is soft on practical solutions. How does Blue Ocean Strategy differ in this regard? Indeed, it is one thing to say that there is untapped market space devoid of any competition, but it is another thing to have practical tools and methodologies to create blue oceans. Kim and Mauborgne deliver the strategy and the way to implement it.
Based on a study of 150 strategic moves spanning more than a hundred years and thirty industries, Kim and Mauborgne argue that tomorrow's leading companies will succeed not by battling competitors, but by creating "blue oceans" of uncontested market space ripe for growth. Such strategic moves-termed "value innovation"-create powerful leaps in value for both the firm and its buyers, rendering rivals obsolete and unleashing new demand. Tried and tested, Blue Ocean Strategy presents practical methodologies in the quest of blue oceans. These tools and frameworks have been applied in action, by working with companies in their pursuit of blue oceans, and have been enriched and refined in the process.
Blue Ocean Strategy provides a systematic approach to making the competition irrelevant. In this frame-changing book, Kim and Mauborgne present a proven analytical framework and the tools for successfully creating and capturing blue oceans. Examining a wide range of strategic moves across a host of industries, Blue Ocean Strategy highlights the six principles that every company can use to successfully formulate and execute blue ocean strategies. The six principles show how to reconstruct market boundaries, focus on the big picture, reach beyond existing demand, get the strategic sequence right, overcome organizational hurdles, and build execution into strategy.
Upending traditional thinking about strategy, this landmark book charts a bold new path to winning the future.
<em>Click on the link on the top right hand menu to read book reviews, interviews with the authors and much more about the Blue Ocean Strategy.</em>
Harvard Business School Press, 2004