Blue Ocean Strategy by W. Chan Kim
Blue Ocean Strategy is a groundbreaking book that challenges traditional business strategy by arguing that cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool.
Based on a study of 150 strategic moves spanning more than a hundred years and thirty industries, the authors argue that tomorrow’s leading companies will succeed not by battling competitors, but by creating “blue oceans” of uncontested market space ripe for growth.
The core principle of blue ocean strategy is value innovation, which places equal emphasis on value and innovation. It’s not just about technology innovation or being first to market in a new category.
Instead, it’s about redefining the problem, crossing market boundaries, and unlocking exceptional value for buyers.
The book outlines four key strategies for creating a blue ocean:
- Focus on buyer utility
- Set the right strategic price
- Reduce your cost structure
- Make it easy for customers to adopt your product or service
Some useful takeaways from the book include:
- Stop worrying about what the competition is doing.
- Focus on value innovation = lower cost + increased value.
- Use the four-actions framework to differentiate your products/services.
- Seek out non-customers and new market segments that have values in common with your current customer base.
Overall, Blue Ocean Strategy is a must-read for anyone seeking to understand how to approach the market differently and create their own blue ocean of opportunities.
What I Liked
Everything – this book is exactly how I try to approach business for myself and clients.
What I Did Not Like
It’s a bit fluffy in parts.
