Blue Ocean Strategy By Chan Kim And Renee Mauborgne

1694 WordsDec 2, 20157 Pages
Blue Ocean Strategy is a book written and published by Chan Kim and Renee Mauborgne in 2005. More than a decade of research was performed by the authors, and this research is analyzed extensively in the book. The authors were looking for successful companies that broke through the accepted norms of their industries to find greater success. Many of the companies they researched are still leading their industries today. These companies created what the authors define as a blue ocean- that is, “uncontested market space that is ripe for growth,” as opposed to a red ocean- “companies competing with each other over a shrinking profit pool.” The authors define the term “value innovation,” which they say is the cornerstone of the Blue Ocean strategy. What makes value innovation different, is that it does not focus on beating out the competition. Instead, value innovation revolves around finding ways to make the competition irrelevant. Breaking out of a red ocean and entering a blue ocean means that the company is in an uncontested market and the competition no longer matters. This happens when a company creates a great increase in value for its customers. The authors call this value creation. This concept is remarkably simple. Give consumers more value in what they are receiving, and in turn they will value your company more. The example listed in the book is about Cirque du Soleil. Cirque du Soleil created uncontested market space when it combined the circus and theatre for a
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