Notes On Blue Ocean Strategy

1767 WordsApr 18, 20168 Pages
W. CHAN KIM AND RENEE MAUBORGNE BLUE OCEAN STRATEGY HOW TO CREATE UNCONTESTED MARKET SPACE AND MAKE THE COMPETIOION IRRELEVENT BOOK SUMMARY BACKGROUND Authors W. Chan Kim and Renee Mauborgne are both professors of strategy at INSEAD Business School, France, and are both Fellows of the World Economic Forum. They both have an established presence in the world of academics and business, so they can be considered an authority on strategic and business planning. First published in 2005, Blue Ocean Strategy introduced a new way of creating market space. Kim and Mauborgne proposed that the market could be divided into two categories: blue oceans and red oceans. In a red ocean, everything is known, the rules are laid out and the boundaries clearly defined. In a blue ocean, the competition becomes irrelevant as businesses forge into the untapped potential of the market creating their own space. This book revolutionized how businesses thought about strategic and business planning. OVERVIEW This book proposes that the best way to overcome the competition, it to stop trying to compete with them. When a business does this, they leave behind the red ocean filled with sharks, and enter into blue oceans where they are free to grow without fear of being attacked. The authors surveyed over 100 companies and found that 86 percent were product extensions while the remaining 14 percent delved into blue oceans. Even though only a small number decided to brave the unknown, they generated 61
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