One Sentence Summary
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The blue ocean strategy explains how to guide your business across seas with less competition and greater profitability.
Best Quotes
“Blue oceans are right next to you in every industry.”
“Create. Don't Compete.”
“The natural strategic orientation of many companies is toward retaining existing customers and seeking further segmentation opportunities.”
“senior managers’ goal here should be to manage their portfolio of businesses to wisely balance between profitable growth and cash flow at a given point in time.”
Key Takeaways
- Reconstruct market boundaries: This principle identifies the paths by which managers can systematically create uncontested market space across diverse industry domains, hence attenuating search risk.
- Focus on the big picture, not the numbers: This presents an alternative to the existing strategic planning process, which is often criticized as a number-crunching exercise that keeps companies locked into making incremental improvements. This principle tackles planning risk.
- Reach beyond existing demand: To create the greatest market of new demand, managers must challenge the conventional practice of aiming for finer segmentation to better meet existing customer preferences.
- Get the strategic sequence right: This principle describes a sequence that companies should follow to ensure that the business model they build will be able to produce and maintain profitable growth.
- Overcome key organizational hurdles: Tipping point leadership shows managers how to mobilize an organization to overcome the key organizational hurdles that block the implementation of a blue ocean strategy.
- Build execution into strategy: A blue ocean strategy perforce represents a departure from the status quo, fair process is required to facilitate both strategy making and execution by mobilizing people for the voluntary cooperation needed to execute blue ocean strategy.
About author
- W. Chan Kim (born 1951) is a Korean-born business theorist and Professor of Strategy and Management at INSEAD.
- Renée Mauborgne (born 1963) is an American economist, business theorist and Professor of Strategy and Management at INSEAD.
