"Blue Ocean Strategy" by W. Chan Kim and Renée Mauborgne is a bestselling book that offers a new perspective on business strategy. The book argues that traditional competitive strategies are no longer effective in today's market and that companies need to look beyond the current market to create new opportunities for growth.
The authors use the metaphor of "blue oceans" to describe these untapped markets, which are characterized by high growth potential and low competition. In contrast, "red oceans" represent the crowded, competitive markets that most companies are currently operating in.
One of the key concepts in the book is the "value curve," which is a tool used to visualize a company's position in the market in relation to its competitors. The authors argue that companies should aim to create a "blue ocean" by shifting their value curve, rather than trying to compete with existing players in the market.
One of the most important points in the book is the idea of "non-customers." The authors argue that companies should focus on the people who are not currently buying their products or services, as they represent a large untapped market. By understanding the needs and wants of non-customers, companies can create new products or services that appeal to them.
For example, Cirque du Soleil, a Canadian entertainment company, is a great example of a company that created a "blue ocean" by understanding the non-customers of traditional circuses. They created a new type of circus that appeals to a wider audience and is not limited to traditional circus-goers.
Another key concept in the book is the "four actions framework," which is a tool used to create a "blue ocean" by focusing on four key areas: value, price, cost, and distribution. By taking a holistic approach to these areas, companies can create a unique value proposition that sets them apart from their competitors.
In conclusion, "Blue Ocean Strategy" is a must-read for anyone looking to create new opportunities for growth in their business. The book offers a fresh perspective on business strategy and provides practical tools and insights to help companies create "blue oceans" and achieve long-term success. As the authors say, "The greatest danger in times of turbulence is not the turbulence – it is to act with yesterday’s logic."