Hello, my name is Maria and today we’re talking about “Blue Ocean Strategy” by Chan Kim and Renée Mauborgne.
Blue Ocean strategy is based on the concept of trying to create uncontested market space.
I have two main points I’d like to share with you, so let’s get started.
Value innovation is about creating uncontested market space.
Differentiating your product or service so much to the extent that what you’re offering is a value proposition that is unparalleled to anything else offered in the market.
Or actually, ideally creating a new market for a product or service that’s never existed before.
Value innovation is not just about creating the most high-tech and advanced product.
It’s about aligning your idea, your vision, your price point with the value proposition that you’re presenting and using that to differentiate yourself and create uncontested market space.
Red ocean businesses operate on a structuralist view.
What that means is that the conditions of competition are predetermined.
That there are a set of rules that you must follow and compete with your competitors in the specific area and try to just incrementally differentiate yourself.
On the other hand, blue ocean businesses are based on re-constructionist views.
What this means is that the industry players are deciding the conditions of competition.
They decide what they want to compete on and how they want to position their product.
Even if it doesn’t fit into the traditional marketplace.
This is where we can truly differentiate ourselves and ideally create uncontested market space.
Kim and Mauborgne both offer valuable insight in case studies of examples of how businesses are either suffering in the red ocean or succeeding in the blue ocean.
Another thing I love about this book is that there are so many online tools on their website that will help you develop your business.
One thing I don’t like about this book is that the case studies are quite dated.
They are from 2004, so in the scheme of technology the market has completely transitioned.
Well, if you’re someone trying to develop a business plan or in the ideation phase of your business, this book is definitely going to help you.
You can use this book and the online resources linked to this book to create a blue ocean strategy and see if your business idea is realistically capable of creating a blue ocean and creating uncontested market space.
If you’re currently a business owner or a leader in your business, you can also benefit from this book because you can see if the issues you’re facing may be contributed to the fact that you’re operating in the red ocean rather than the blue ocean, and you’ll be able to see practical, tangible examples of how you can try and transition into a blue ocean strategy.
That’s it, that’s my book review of “Blue Ocean Strategy” by Chan Kim and Renée Mauborgne.
If you want more information on the authors or you want to see what I talked about here in a written format please head over to my blog www.promotekdbook.com.
Next week I’ll be back with another book review, but until then, keep reading and keep learning!Purchase Link: https://www.amazon.com/dp/B00O4CRR7Y