Blue Ocean Strategy: Beyond Industry Competition, Creating a New Market

Author: W. Chan Kim et al.
Publisher:
Publish Date: 2005-05-01
Features: To seek sustainable, profitable growth, companies often engage in head-on competition with their rivals. They fight for competitive advantage, market share, and differentiation. However, in today's overly crowded industrial markets, such intense competition can only trap companies in the bloody "Red Ocean"—a fiercely contested space of known market boundaries—where they vie for increasingly shrinking profit margins. In this book, the authors challenge the conventional laws of strategic success that you may be familiar with. They argue that lingering in the Red Ocean of competition will become increasingly difficult in creating future profitable growth. Based on their research of 150 strategic actions spanning over 100 years and involving more than 30 industries, the authors propose that to win tomorrow, companies should not compete with rivals but instead create the "Blue Ocean"—a new market space with vast untapped demand—to pave the way for growth. This strategic action, known as "value innovation," can create a leap in value for both companies and buyers, enabling firms to completely outdistance their competitors and unlock new demand. Blue Ocean Strategy provides a systematic approach for companies to break free from competition. In this groundbreaking book that challenges traditional strategic thinking, the authors present a proven analytical framework and tools to help companies successfully create and capture Blue Oceans. Through their analysis of numerous strategic actions across various industries, the authors also propose six key principles for successfully formulating and executing Blue Ocean Strategy. These principles guide companies on how to rebuild market boundaries, focus on the bigger picture, exceed existing demand, follow a logical strategic sequence, overcome organizational barriers, and embed strategy execution as part of the strategy itself. Since its publication by Harvard Business Press in February 2005, Blue Ocean Strategy has generated immense global impact, earning titles such as "Wall Street Journal Bestseller," "National Bestseller," and "Global Bestseller." To date, it has been translated into 24 languages, shattering the record for international rights sales in Harvard Business Press history. The authors of this book have also launched a dedicated website for it: www.blueoceanstrategy.com. For further information, please visit the site.