Blue Oceans

Taken from the book-Blue Ocean Strategy- W. Chan Kim & Renee Mauborgne

How to create uncontested Market Space & make the Competition Irrelevant

The authors claim that there are no permanently excellent companies, just as there are no permanently excellent industries.

This book challenges companies to break out of the red ocean of bloody competition by creating uncontested market space that makes the competition irrelevant.

The idea of this book is bold: To win in the future, companies must stop competing with each other. The only way to beat the competition is to stop trying to beat the competition.

Imagine a market universe composed of two types of oceans: red oceans & blue oceans. Red oceans represent all the industries in existence today. This is the known market space. Blue oceans denote all the industries not in existence today. This is known as the unknown market space.

In the red oceans, industry boundaries are defined & accepted, & the competitive rules of the game are known.

Blue oceans, in contrast, are defined by untapped market space, demand creation, & the opportunity for highly profitable growth. In the blue oceans, competition is irrelevant because the rules of the game are waiting to be set.

It will always be important to swim successfully in the red ocean by out-competing rivals. But to seize new profit & growth opportunities, companies also need to create blue oceans.

Creating blue oceans has remained wishful thinking.

In blue oceans, instead of focusing on beating the competition, you focus on making the competition irrelevant by creating a leap in value for buyers & your company, thereby opening up new & uncontested market space.

The challenge is to successfully identify, out of the haystack of possibilities that exist, commercially compelling blue ocean opportunities.