Blue Ocean Strategy is about creating new demand, not stealing market share from "summary" of Blue Ocean Strategy, Expanded Edition by W. Chan Kim,Renée A. Mauborgne
The essence of Blue Ocean Strategy lies in the fundamental idea of moving away from competition in existing market spaces to creating new market spaces. Rather than fighting for a share of an existing market, the focus is on expanding the market itself by tapping into unexplored customer needs and preferences. This shift in perspective enables companies to unlock new demand and break free from the constraints of competition. By creating new demand, companies can escape the red ocean of bloody competition and enter the blue ocean of uncontested market space. This approach allows for the creation of value innovation, where companies simultaneously pursue differentiation and low cost, offering customers a leap in value while keeping costs under control. In doing so, companies can attract a new segment of noncustomers who were previously outside the industry's reach. The key to success in implementing Blue Ocean Strategy is to focus on innovation and value creation rather than simply trying to outperform rivals in the existing market. This means shifting the strategic focus from beating the competition to making the competition irrelevant. Instead of benchmarking against competitors, companies should look to redefine the industry boundaries and shape the market to their advantage. Creating new demand involves identifying and addressing the latent needs of customers that have not been met by existing offerings. This requires a deep understanding of customer preferences, behaviors, and pain points, as well as the ability to anticipate emerging trends and disruptions in the market. By aligning innovation with customer needs and market trends, companies can unlock new sources of growth and profitability.- Blue Ocean Strategy is not about stealing market share from competitors but about creating new market spaces where competition becomes irrelevant. By focusing on value innovation and customer-centricity, companies can break away from the red ocean of competition and chart their course in the blue ocean of uncontested market space. This strategic shift opens up new opportunities for growth, differentiation, and sustainable success in an increasingly competitive business landscape.
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