Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant
W. Chan Kim
Written by the business world's new gurus, Blue Ocean Strategy continues to challenge everything you thought you knew about competing in today's crowded market place. Based on a study of 150 strategic moves spanning more than a hundred years and thirty industries, authors W. Chan Kim and Renee Mauborgne argue that lasting success comes from creating 'blue oceans': untapped new market spaces ripe from growth. And the business world has caught on - companies around the world are skipping the bloody red oceans of rivals and creating their very own blue oceans. With over one million copies sold world wide, Blue Ocean Strategy is quickly reaching "must read" status among smart business readers. Have you caught the wave?
R AT E G Y raised the level of environmental friendliness high above the industry standard. Moreover, the higher price NABI charged allowed it to create factors unprecedented in the industry, such as modern aesthetic design and customer friendliness, including lower floors for easy mounting and more seats for less standing. These boosted demand for transit bus service, generating more revenues for municipalities. NABI changed the way municipalities saw their revenues and costs involved in
Salick cancer centers combine all the cancer treatments their patients might need under one roof so that they don’t have to go from one specialized center to another, making separate appointments for each service they require. What is the context in which your product or service is used? What happens before, during, and after? Can you identify the pain points? How can you eliminate these pain points through a complementary product or service offering? Path 5: Look Across Functional or Emotional
Beauty) House. QB House created a blue ocean in the Japanese barbershop industry and is rapidly growing throughout Asia. Started in 1996 in Tokyo, QB House has blossomed from one outlet in 1996 to more than two hundred shops in 2003. The number of visitors surged from 57,000 in 1996 to 3.5 million annually in 2002. The company is expanding in Singapore and Malaysia and is targeting one thousand outlets in Asia by 2013. At the heart of QB House’s blue ocean strategy is a shift in the Asian
distinguish oneself in the community, whereas not contributing would be a sign of arrogance and disrespect. As a result, most of Mexico’s poor had insufficient and inconsistent savings to purchase building materials, even though having a Reconstruct Market Boundaries 73 cement house was the stuff of dreams in Mexico. Cemex conservatively estimated that this market could grow to be worth $500 million to $600 million annually if it could unlock this latent demand.5 Cemex’s answer to this
people’s attitudes and behaviors. Figure 1-4 highlights the six principles driving the successful formulation and execution of blue ocean strategy and the risks that these principles attenuate. Chapter 9 discusses the dynamic aspects of blue ocean strategy— the issues of sustainability and renewal. Let’s now move on to chapter 2, where we lay out the basic analytical tools and frameworks that will be used throughout this book in the formulation and execution of blue ocean strategy. ( ) ( ) ( )