By W. Chan Kim, Renée Mauborgne
Kim & Mauborgne: the unique Blue Ocean procedure influenced enterprises around the globe to pursue “blue oceans” of uncontested marketplace area. The multiplied version of Blue Ocean procedure brings the entire unique case reviews and examples modern, expands one bankruptcy, and provides fresh ones. jointly, the hot fabric deal with manager’s key demanding situations and bother spots in placing blue ocean procedure into practice.
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Extra resources for Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant (Expanded Edition)
Although innovations of this sort may help to secure and even lift a company’s position in the existing market space, such a subsystem approach will rarely create a blue ocean of new market space. In this sense, value innovation is a distinct concept. indd 17 28/10/14 4:24 PM 18 BLUE OCEAN STRATEGY system toward achieving a leap in value for both buyers and themselves. 24 Figure 1-3 outlines the key deﬁning features of red and blue ocean strategies. 25 In contrast, value innovation is based on the view that market boundaries and industry structure are not given and can be reconstructed by the actions and beliefs of industry players.
This is the unknown market space. 1 Here, companies try to outperform their rivals to grab a greater share of existing demand. As the market space gets crowded, prospects for proﬁts and growth are reduced. Products become commodities, and cutthroat competition turns the red ocean bloody. Blue oceans, in contrast, are deﬁned by untapped market space, demand creation, and the opportunity for highly proﬁtable growth. indd 4 28/10/14 4:24 PM Creating Blue Oceans 5 Although some blue oceans are created well beyond existing industry boundaries, most are created from within red oceans by expanding existing industry boundaries, as Cirque du Soleil did.
To avoid the pitfalls of In Search of Excellence, however, the survey period of Built to Last was expanded to the entire life span of the companies, while its analysis was limited to ﬁrms more than forty years old. Built to Last also became a bestseller. indd 9 28/10/14 4:24 PM 10 BLUE OCEAN STRATEGY But again, upon closer examination, deﬁciencies in some of the visionary companies spotlighted in Built to Last have come to light. 15 For example, Hewlett-Packard (HP) met the criteria of Built to Last by outperforming the market over the long term.
Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant (Expanded Edition) by W. Chan Kim, Renée Mauborgne