When a book is titled “Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant “, it is bound to attract attention 🙂
Who would like to get his hands red anyway?:-) Here’s how to get blue from Chan Kim and Renee Mauborgne.
The authors take a blue ocean metaphor to competitor-free markets that innovative companies can navigate. Unlike “red oceans,” which are well explored and crowded with competitors, “blue oceans” represent “untapped market space” and the “opportunity for highly profitable growth.”
The authors make a case for pursuing a blue ocean strategy (Although 14% of new product launches are blue ocean launches they contribute 38% to revenue impact and 81% to profit impact out of all launches)
The book outlines the following steps of the Blue Ocean Strategy:
1. Reconstruct market boundaries. (Strategically examine your industry’s key competitive drivers. )
2. Focus on the big picture, not the numbers
3. Reach beyond existing demand.
4. Get the strategic sequence right.
5. Overcome key organizational hurdles.(Cognitive,Resource,Motivational and Political hurdles)
6. Build execution into strategy.(Sustainability and Renewal)