Blue Ocean Strategy is about creating uncontested market space from "summary" of Blue Ocean Strategy, Expanded Edition by W. Chan Kim,Renée A. Mauborgne
The essence of Blue Ocean Strategy lies in the creation of uncontested market space. This concept challenges the traditional competitive mindset of trying to beat rivals in existing markets. Instead of focusing on the competition, the strategy encourages businesses to make the competition irrelevant by creating new market space where the rules are yet to be defined. In doing so, companies can unlock new demand and achieve profitable growth. By shifting the focus from competing to creating, businesses can break free from the constraints of competition and differentiation. This involves exploring new opportunities outside the existing market boundaries, where there is little to no competition. This 'blue ocean' represents untapped potential waiting to be discovered and exploited. The key to creating uncontested market space lies in value innovation. This involves simultaneously pursuing differentiation and low cost, thereby creating a leap in value for both buyers and the company. By aligning innovation with utility, price, and cost positions, businesses can offer a compelling value proposition that attracts a new customer base. The process of creating a blue ocean involves reconstructing market boundaries, focusing on the big picture, reaching beyond existing demand, and getting the strategic sequence right. By challenging industry assumptions, businesses can identify new opportunities for value creation and make the competition irrelevant.- Blue Ocean Strategy is about breaking away from the red ocean of bloody competition and entering into the blue ocean of uncontested market space. By creating new market space, businesses can unlock new demand, drive profitable growth, and make the competition irrelevant. This strategic approach offers a fresh perspective on value creation and innovation, enabling companies to chart their own course to success.
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