3 of 3 people found the following review helpful
Framework to break away from face-to-face competition,
This review is from: Blue Ocean Strategy: How To Create Uncontested Market Space And Make The Competition Irrelevant (Hardcover)W. Chan Kim is Professor of Strategy and International Management at INSEAD. Renée Mauborgne is The INSEAD Distinguished Fellow and a Professor of Strategy and Management. This book was published in 2005 and consists of three parts, whereby each part consists of 2-to-5 chapters each. There is also a short preface and 3 proper appendices.
The aim of the book is made clear in the preface: to make the formulation and execution of blue ocean strategy as systematic and actionable as competing in the red waters of known market space. Whereby the authors in the first chapter introduce blue ocean strategy: "... blue ocean strategy challenges companies to create uncontested market space that makes the competition irrelevant ... blue ocean strategy is about growing demand and breaking away from the competition." The successful formulation and execution of blue ocean strategy is based on six principles which are discussed in chapter 3 through to 8. However, Chapter 2 first introduces the analytical tools and frameworks that are essential for creating and capturing blue oceans.
The 4 chapters in Part II - Formulating Blue Ocean Strategy introduce the four guiding principles for the successful formulation of blue ocean strategy. Chapter 3 identifies the paths by which you can systematically create uncontested market space across diverse industry domains, hence attenuating `search risk'. The authors introduce the `six paths framework' which have general applicability across industry sectors for remaking market boundaries. In the fourth chapter, the authors recommend companies to redesign their traditional strategic planning process and focus on the big picture, via the strategy canvas, to create value innovation and thereby tackling `planning risk'. The authors minimize `scale risk' in Chapter 5 by challenging conventional practice of aiming for finer segmentation to better meet existing customer preferences and create the greatest market of new demand. Chapter 6 addresses `business model risk' by ensuring that a company builds a viable business model to product and maintain profitable growth through a strategy sequence of utility, price, cost, and adoption.
In Part III - Executing Blue Ocean Strategy the authors turn to the principles that drive effective execution of blue ocean strategy. Specifically, Chapter 7 deals with organizational risk and introduces `tipping point leadership', which managers can use to mobilize an organization the key organizational hurdles that block the implementation of a blue ocean strategy. Chapter 8 argues for the integration of execution into strategy making and deals with `management risk' associated with people's attitudes and behaviors. The final chapter discusses the dynamic aspects of blue ocean strategy - the issues of sustainability and renewal. "Creating blue oceans is not a static achievement but a dynamic process." In addition, there are 3 proper appendices to assist in the explanation of blue ocean strategy.
Yes, I do like this book. I see this book as a complement in the field of strategy to Michael E. Porter's landmark book "Competitive Strategy". The authors focus on the creation of blue oceans, which is about growing (new) demand and breaking away from the traditional face-to-face competition that can be seen in red oceans. Blue ocean strategy is based on 4 formulation and 2 execution principles that address both opportunity and risk. Just keep in mind that creation of blue oceans will take time, requires determination to sustain and continuously renew the chosen strategy.