Title: Blue Ocean Strategy. How to find or create a market free from other players
Writer: Kim Chan, Rene Mauborgne
Year: 2015
Publisher: Mann, Ivanov and Ferber (MIF)
Age limit: 12+
Volume: 370 pages 40 illustrations
Genres: Foreign business literature, Job search, career, Marketing, PR, advertising
About Blue Ocean Strategy. How to find or create a market free from other players" Kim Chang, René Mauborgne
What is competition? This is a rivalry in any business. But at the same time it can be healthy, in which important role passion and the desire to do better, better, thereby attracting the attention of consumers. Or it can be cruel when, for the sake of their success, people are ready to go over their heads, deceive and play a dishonest game.
Rene Mauborgne and Kim Chan believe that today it is already necessary to deviate from the generally accepted rules of doing business and act differently in order to achieve certain goals and plans. They write about this very excitingly in their book called Blue Ocean Strategy. How to find or create a market free from other players.
As you know, today almost all spheres of human life and activity are developing very rapidly. Something goes far into the background, new strategies and ideas appear. In order to achieve high results right now, you need to carefully study the information about how a business is created today, what leads to success, and what can sink a business at an early stage. At the same time, the work of Rene Mauborgne and Kim Chan is designed for those readers who want to raise their business in an honest way, do not want to swarm in bloody scarlet water, but find ideas in an ocean of pure blue.
The author in the book “Blue Ocean Strategy. How to find or create a market free from other players” write that they analyzed the success of any business for a long time and came to the consensus that it is necessary to create a niche for it in which there will be no competition. That is, you can create something new, you do not have to compete with competitors. Mauborgne and Kim Chan believe that today we need to move away from rivalry.
In business, it often happens that supply begins to exceed demand. Of course, you need to fight for your place under the sun, but in the end you get a scarlet ocean because of the bloody struggle. You need to create completely new niches for yourself and, thereby, promote your business.
Kim Chan and Rene Mauborgne not only offer their philosophy, their innovative discoveries on the issue of doing business in the book Blue Ocean Strategy. How to find or create a market free from other players”, but also provide a basis for undertakings in this area. You have to study the market very carefully, find what is really missing and move in that direction. The authors also give advice on how not to miss the opportunity, how not to make mistakes and not burn out. The book is full of examples, including the development of Starbucks, Ikea, and many other well-known companies.
The book by Kim Chan and Rene Mauborn will be of interest to everyone who has their own business, company and is already tired of competition. And also to those who are looking for new ways, new ideas and are ready for changes and risks. There is no single recipe for success, but there are many useful information, which will help you change your entire life and the management of the company, which will immediately lead to positive results.
On our literary site, you can download the book by Kim Chan, Rene Mauborgne “The Blue Ocean Strategy. How to find or create a market free from other players” for free in formats suitable for different devices - epub, fb2, txt, rtf. Do you like to read books and always follow the release of new products? We have a large selection of books of various genres: classics, modern science fiction, literature on psychology and children's editions. In addition, we offer interesting and informative articles for beginner writers and all those who want to learn how to write beautifully. Each of our visitors will be able to find something useful and exciting.
Rene Mauborgne, Kim Chan
Blue ocean strategy. How to find or create a market free from other players
Published with permission from Harvard Business Review Press and Alexander Korzhenevsky Literary Agency
Copyright © 2005 Harvard Business School Publishing Corporation
© Translation into Russian, edition in Russian, design. LLC "Mann, Ivanov and Ferber", 2014
All rights reserved. No part of the electronic version of this book may be reproduced in any form or by any means, including posting on the Internet and corporate networks, for private and public use, without the written permission of the copyright owner.
Legal support of the publishing house is provided by law firm"Vegas Lex"
© Electronic version book prepared by Litres (www.litres.ru)
This book is well complemented by:
Search for a business model. How to save a startup by changing the plan in time
John Mullins and Randy Komisar
Second space. The Art of Management and Future Strategies
Geoffrey Moore
impulse effect. How to survive in the "blue ocean"
Jean-Claude Laresh
To friends and relatives,
that fill our worlds with meaning
Preface to the publication in Russian
We are very pleased that the Blue Ocean Strategy has been translated into Russian and the ideas presented in this book have become available to the Russian-speaking audience. Once we happened to visit Russia. This happened at the end of the 80s, when we arrived in Leningrad, as the current St. Petersburg was still called in those years. We were surprised by the entrepreneurial spirit of those we met then, the inherent energy and desire of Russians to create new economic opportunities.
The question is: how can those doing business in Russia today put all their energy and intelligence into breaking the competition and creating blue oceans of a market space that has no place for competition? How can Russian business create products and services that provide companies with rapid profitable growth and are available to the mass buyer not only in Russia, but also in other countries of the world?
With global competition intensifying and trade barriers collapsing, answering these questions is more important than ever. The Blue Ocean Strategy book not only presents the concept itself, but also provides analytical tools and techniques that each Russian company can be applied in any field of activity - from the production of industrial products, the creation of consumer goods, the provision of services, retail, catering and to circus performances - in order to solve this daunting task. Through our research over the past fifteen years, we have identified clear strategic patterns for creating blue oceans to break the vicious cycle of competitive warfare.
We invite you to read this book and apply its ideas and concepts in practice: in your company, in your enterprise. Blue oceans of opportunity lie all around us. There is no need to compete when you can turn your energy to the cause of creation.
Use the Blue Ocean Strategy to pave the way to new, high-value markets where everyone benefits: companies, consumers, and society at large. We hope that this book will help the cause of creating a prosperous Russian economy.
Foreword
This book is dedicated to friendship, devotion and faith in each other. It was through friendship and faith that we embarked on a journey, exploring the ideas in this book, and then writing the book itself.
Our acquaintance took place twenty years ago in the classroom - one of us was then a professor, and the other was a student. And since then we have been working together, inspiring and supporting each other. This book is not a victory for an idea, but for a friendship that means more to us than any idea in the business world. Friendship has made our lives richer and our worlds more beautiful. None of us were alone.
There are no easy journeys; there is no friendship filled only with laughter. However, we met every day of our journey with joy, for we strived for knowledge and improvement. We passionately believed in the ideas presented in the book. These ideas are not for those who only dream of surviving. We have never been interested in survival. If your thoughts are only limited by them, do not read further. However, if you want to go the other way, build a company and use it to build a future where customers, employees, shareholders, and society all benefit, read on.
We do not promise you that it will be easy, but this path deserves attention.
The results of our research have confirmed that there are no companies that would not know failures, just as there is no forever successful industry. We have learned from experience that people, like corporations, are sometimes smart and sometimes not. To be more successful, we need to understand how we got the positive result and how we can replicate it systematically. This is what we call smart strategic moves, and, as we have established, the strategic move to create blue oceans is of paramount importance. blue ocean strategy aims to encourage companies to break out of the scarlet ocean of competition by creating a market niche for themselves where they can not be afraid of competitors. Blue ocean strategy proposes to move away from sharing existing – and often declining – demand with others, while constantly looking at competitors. Instead, she suggests dedicating ourselves to creating new, growing demand and moving away from competition. The book not only encourages companies to take this step, but also explains what needs to be done. First, we give you a set of analytical tools and perspectives that show you what systematic actions to take along the proposed path, and then we look at the principles that define blue ocean strategy and distinguish it from strategic approaches that are based on competition.
Our goal is to formulate and implement a blue ocean strategy that is as systematic and efficient as the competition in the red waters of the market we already know is systematic and efficient. Only then can companies take a thoughtful and responsible approach to creating blue oceans, maximizing their opportunities and minimizing risk. No company—regardless of size or age—can afford to turn into a gambler from a riverboat. Can't and shouldn't.
Current page: 1 (total book has 19 pages) [accessible reading excerpt: 4 pages]
Rene Mauborgne, Kim Chan
Blue ocean strategy. How to find or create a market free from other players
W. Chan Kim, Renee Mauborgne
Blue Ocean Strategy
How to Create Uncontested Market Space and Make the Competition Irrelevant
Published with permission from Harvard Business Review Press and Alexander Korzhenevsky Literary Agency
Legal support of the publishing house is provided by the law firm "Vegas-Lex"
Copyright © 2005 Harvard Business School Publishing Corporation
© Translation into Russian, edition in Russian, design. LLC "Mann, Ivanov and Ferber", 2014
* * *
This book is well complemented by:
Business Model Search
How to save a startup by changing the plan in time
John Mullins and Randy Komisar
Second space
The Art of Management and Future Strategies
Geoffrey Moore
momentum effect
How to survive in the "blue ocean"
Jean-Claude Laresh
To friends and family who fill our worlds with meaning
Preface to the publication in Russian
We are very pleased that the Blue Ocean Strategy has been translated into Russian and the ideas presented in this book have become available to the Russian-speaking audience. Once we happened to visit Russia. This happened at the end of the 80s, when we arrived in Leningrad, as the current St. Petersburg was still called in those years. We were surprised by the entrepreneurial spirit of those we met then, the inherent energy and desire of Russians to create new economic opportunities.
The question is: how can those doing business in Russia today put all their energy and intelligence into breaking the competition and creating blue oceans of a market space that has no place for competition? How can Russian business create products and services that provide companies with rapid profitable growth and are available to the mass buyer not only in Russia, but also in other countries of the world?
With global competition intensifying and trade barriers collapsing, answering these questions is more important than ever. In addition to presenting the concept, Blue Ocean Strategy provides analytical tools and methodologies that every Russian company can apply in every industry, from manufacturing, consumer goods, services, retail, catering and to circus performances in order to solve this most difficult task. Through our research over the past fifteen years, we have identified clear strategic patterns for creating blue oceans to break the vicious cycle of competitive warfare.
We invite you to read this book and apply its ideas and concepts in practice: in your company, in your enterprise. Blue oceans of opportunity lie all around us. There is no need to compete when you can turn your energy to the cause of creation.
Use the Blue Ocean Strategy to pave the way to new, high-value markets where everyone benefits: companies, consumers, and society at large. We hope that this book will help the cause of creating a prosperous Russian economy.
Foreword
This book is dedicated to friendship, devotion and faith in each other. It was through friendship and faith that we embarked on a journey, exploring the ideas in this book, and then writing the book itself.
Our acquaintance took place twenty years ago in the classroom - one of us was then a professor, and the other was a student. And since then we have been working together, inspiring and supporting each other. This book is not a victory for an idea, but for a friendship that means more to us than any idea in the business world. Friendship has made our lives richer and our worlds more beautiful. None of us were alone.
There are no easy journeys; there is no friendship filled only with laughter. However, we met every day of our journey with joy, for we strived for knowledge and improvement. We passionately believed in the ideas presented in the book. These ideas are not for those who only dream of surviving. We have never been interested in survival. If your thoughts are only limited by them, do not read further. However, if you want to go the other way, build a company and use it to build a future where customers, employees, shareholders, and society all benefit, read on.
We do not promise you that it will be easy, but this path deserves attention.
The results of our research have confirmed that there are no companies that would not know failures, just as there is no forever successful industry. We have learned from experience that people, like corporations, are sometimes smart and sometimes not. To be more successful, we need to understand how we got the positive result and how we can replicate it systematically. This is what we call smart strategic moves, and, as we have established, the strategic move to create blue oceans is of paramount importance. blue ocean strategy aims to encourage companies to break out of the scarlet ocean of competition by creating a market niche for themselves where they can not be afraid of competitors. Blue ocean strategy proposes to move away from sharing existing – and often declining – demand with others, while constantly looking at competitors. Instead, she suggests dedicating ourselves to creating new, growing demand and moving away from competition. The book not only encourages companies to take this step, but also explains what needs to be done. First, we give you a set of analytical tools and perspectives that show you what systematic actions to take along the proposed path, and then we look at the principles that define blue ocean strategy and distinguish it from strategic approaches that are based on competition.
Our goal is to formulate and implement a blue ocean strategy that is as systematic and efficient as the competition in the red waters of the market we already know is systematic and efficient. Only then can companies take a thoughtful and responsible approach to creating blue oceans, maximizing their opportunities and minimizing risk. No company—regardless of size or age—can afford to turn into a gambler from a riverboat. Can't and shouldn't.
This book is the culmination of fifteen years of research and study of data from the past hundred plus years. It was preceded by a series of articles published in the Harvard Business Review and academic publications on various aspects of this topic. The ideas, models and tools presented in the book have been tested and refined in practice for many years in various corporations in Europe, the United States and Asia. The book builds on and develops this work, bringing all these ideas together in overall structure. It covers not only the analytical aspects that underlie the blue ocean strategy, but also the equally important points related to people, how to send an organization and its people along this path, how to create a desire in them to bring these ideas to life. We especially emphasize the importance of understanding how to achieve trust and loyalty, as well as intellectual and emotional recognition. Moreover, this understanding underlies the strategy itself.
The possibilities of blue oceans have always been there - just reach out. As they opened, the market universe expanded. We believe that this expansion is the key to growth. However, in theory and in practice, people sometimes do not understand how blue oceans can be systematically created and dominated. We invite you to read this book and find out how you can become driving force in the process of expanding the market space.
Part one
blue ocean strategy
Creating Blue Oceans
Former accordionist, acrobat and fire-eater Guy Laliberte is now the head of Cirque du Soleil, one of Canada's largest cultural exporters. Founded in 1984 by a group of street actors, the company has already introduced its productions to almost forty million people in ninety cities around the world. In less than twenty years of its existence, Cirque du Soleil began to make profits that Ringling Bros. and Barnum & Bailey - the world champions of the circus industry - managed to achieve only more than a hundred years after their appearance.
This rapid growth is also remarkable in that it took place not in an attractive, but in a fading industry, where the traditional strategic analysis pointed to limited growth opportunities. The power of suppliers in the form of performing stars was as strong as the power of consumers. Alternative forms of entertainment - from a variety of city shows and sporting events to domestic entertainment - more and more led the circus industry into the shadows. Children begged their parents for money for game consoles, and not for a ticket to a traveling circus. This is partly why the circus industry was constantly losing customers and, as a result, falling revenue and income. In addition, animal rights groups increasingly opposed the participation of animals in circus performances. Ringling Bros. and Barnum & Bailey set the tone, and competing small circuses imitated them, creating lower-class versions of their own. In general, from the point of view of competitive strategy, the circus industry looked unattractive.
Another interesting aspect of Cirque du Soleil's success was that the company didn't win by poaching customers from a fading, historically kid-friendly circus industry. Cirque du Soleil did not compete with Ringling Bros. and Barnum & Bailey. Instead, the company has created a new, unoccupied market space, free from competitors. It was aimed at a completely new group of consumers: adults and corporate clients who are willing to pay several times more than a ticket to a regular circus in order to see a new, unparalleled performance. The name of one of the first projects of Cirque du Soleil spoke for itself: "We are reinventing the circus."
New market space
Cirque du Soleil succeeded because it realized that in order to win in the future, companies need to stop competing with each other. The only way to beat the competition is to stop try win.
To understand what Cirque du Soleil has achieved, imagine a market universe made up of two oceans: red and blue. The scarlet oceans symbolize all that exist on this moment industries. This is the part of the market we know. Blue oceans represent all industries that do not yet exist today. These are unknown areas of the market.
In the red oceans, the boundaries of the industry are defined and agreed upon, and the rules of the game of competition are known to all (1) . Here, companies are trying to outperform their rivals in order to win over most of the existing demand. As the market gets tighter, there are fewer opportunities for growth and profit. Products turn into consumer goods, and ruthless competitors cut each other's throats, flooding the scarlet ocean with blood. Blue oceans, on the other hand, signify untouched parts of the market, require creativity and provide the opportunity to grow and earn high profits. While some blue oceans are created outside the established boundaries of the industry, most of them are created within the red oceans, pushing the already existing industry boundaries – as Cirque du Soleil did. In the blue oceans, competition does not threaten anyone, since the rules of the game have yet to be established.
In the red oceans, the most important thing is always the ability to swim, overtaking your competitors. The red oceans will never lose their significance and remain a fact of business life. However, when supply begins to outstrip demand in a wide variety of industries, fighting for market share, while necessary, is no longer sufficient to sustain growth (2) . Companies need to move beyond competition. To generate new profits and opportunities for further development, they need to create blue oceans.
Alas, maps of blue oceans are practically non-existent. All the strategic approaches of the last twenty-five years have been predominantly focused on competition in red oceans (3) . As a result, we are well versed in how to deal with competitors in red waters, starting with the analysis of the underlying economic structure of the industry, the choice strategic position– low costs, differentiation or focus – and up to competitive benchmarking. The debate about blue oceans is ongoing (4) . However practical guides there is very little to create such oceans. Without appropriate analytical tools and developed principles for effective risk management, the creation of blue oceans remains something of a dream and seems too risky for managers. This book offers you just such practical schemes and analytical tools for the systematic search for blue oceans and their conquest.
Blue oceans have always been created
Although the term blue oceans fairly new, you can't say the same about the oceans themselves. They are an integral part of the business world of the past and present. Look at the world of a hundred years ago and ask yourself: how many of today's industries were then unknown to anyone? The answer is: about such fundamental industries as the automotive industry, sound recording, aviation, oil refining, healthcare and management consulting, then they were not heard, at best, these areas were just beginning to emerge. Now let's move the arrow back only thirty years. Again, there are a myriad of multi-billion dollar industries such as investment funds, cell phones, gas-fired power plants, biotechnology, discount retail, courier delivery. postal items, minivans, snowboards, coffee bars, and home VCRs to name but a few. Just three decades ago, none of these industries really existed.
Now let's move the clock forward twenty or fifty years and ask ourselves: how many industries unknown today will appear then? If, based on historical experience, it is possible to predict the future, the answer is unambiguous - there will be a lot of them.
The truth is, industries never stand still. They are constantly evolving. Their work is improving, markets are growing, and players come and go. From the lessons of history, it becomes clear that we have a seriously underestimated opportunity to create new industries and recreate existing ones. Even the Standard Industrial Classification (SIC) proposed by the U.S. Census gave way in 1997 to the North America Industry Classification Standard (NAICS). Under the new system, the ten industry sectors proposed by the SIC have been turned into twenty to represent emerging industries (5) . For example, the service sector that existed in the old system has now been transformed into seven business sectors, from information to health, and there is also a sector social security(6) . Given that these systems are designed to standardize and maintain continuity, these changes are indicative of how significant the expansion of the blue oceans has been.
So far, however, the focus of strategic thinking has been on competitive red ocean strategies. This is partly because corporate strategy is strongly influenced by its progenitor, military strategy. The very language of strategy is thickly saturated with military terms: Chief Executive Officers are in the Headquarters, and Troops of employees are in the Front Line. Described in such terms, the strategy is aimed at confronting the enemy and fighting for a limited piece of land of a strictly defined size (7) . However, unlike war, the history of industry shows that the market universe was never strictly limited; on the contrary, blue oceans were constantly created in it. Thus, focusing on the red ocean meant resigning itself to the basic factors of war (limitation of space and the need to defeat the enemy in order to survive) and denying the obvious advantage of the business world: the possibility of creating a unique market space where there would be no competitors.
Impact of blue oceans
In a study of the business start-ups of 108 organizations, we tried to give quantification the impact of blue oceans on profits and revenues (Figure 1.1). It turned out that 86% of the initiatives were linear expansion, that is, they implied gradual improvements in the existing market space - within the red oceans. They accounted for only 62% of total revenue and 39% of total profit. The remaining 14% of initiatives were aimed at creating blue oceans. They generated 38% and 61%, respectively. Given that business ventures included all investments in the creation of red and blue oceans (regardless of the size of their income and profits, including completely unsuccessful projects), then the benefits of creating a blue ocean are obvious. While we don't have data on the success rates of red and blue ocean initiatives, the global differences in performance above speak for themselves.
Rice. 1.1. The Impact of Blue Ocean Creation on Growth and Profit
Growing need for blue oceans
There are several driving forces behind the growing need for blue oceans. Advances in technology have greatly increased productivity and enabled suppliers to produce unprecedented volumes of products and services. As a result, it turns out that in various industries, supply increasingly exceeds demand (8) . The situation is exacerbated by globalization trends. As borders between countries and regions blur, and product and price information instantly spreads around the world, niche markets and monopoly areas continue to disappear (9) . Supply is growing driven by global competition, but there is no evidence of demand growth worldwide, and statistics even point to declining participation in many developed markets (10) .
The result has been an ever-increasing conversion of goods and services into commodities, intensifying price wars and declining profits. Recent studies of major American brands within the same industry have confirmed this trend (11) . According to research, brands in major categories of goods and services are becoming more similar to each other, and as their similarity grows, people increasingly make their choice based on price (12) . Unlike in the past, the consumer no longer intends to wash exclusively with Tide. And he won't cling to Colgate if they announce a sale of Cross pasta at discounted prices, and vice versa. In manufacturer-packed areas, brand differentiation is becoming increasingly difficult in both economic ups and downs.
All this means that the business environment that gave birth to most of the strategic and managerial approaches in the 20th century is gradually disappearing. There is more blood in the red oceans, and leaders should pay more attention to blue oceans than to those to which the entire host of current managers is so accustomed.
From company and industry to strategic move
How can a company break out of the scarlet ocean of fierce competition? How can she create a blue ocean? Is there a systematic approach that can ensure that the company achieves this goal and thereby maintain high performance?
When we started looking for an answer, our first step was to define the basic unit of analysis for our research. To understand where high performance comes from, business literature typically uses the company as the primary unit of analysis. People never cease to marvel at how companies achieve significant growth and profitability with an exquisite set of strategic, operational and organizational characteristics. However, we asked ourselves another question: are there “exceptional” or “visionary” long-lived companies that constantly beat the market and create blue oceans again and again?
Take, for example, the books In Search of Perfection and Built to Last. The bestseller "In Search of Excellence" was published twenty years ago. However, two years after its publication, some companies studied by the author - Atari, Cheseborough-Pond's, Data General, Fluor, National Semiconductor - have sunk into oblivion. According to Managingonthe Edge, two-thirds of the exemplary companies listed in the book lost their industry leadership position within five years of its publication (13).
Built to Last continued the same theme. In it, the author sought to identify the “successful habits of companies with vision” and a long track record of high performance. However, to avoid the mistakes made in In Search of Perfection, the study period in Built to Last is extended to life cycle companies and only companies that had already existed for at least forty years were subjected to analysis. Built to Last was also a bestseller.
Once again, however, close scrutiny revealed some of the flaws of the visionary companies discussed in the book. As shown in Creative Destruction, much of the success that the author of Built to Last attributed to exemplary companies was the result of the industry as a whole rather than the products of the companies themselves (14) . For example, Hewlett-Packard (HP) met the criteria in Built to Last because it was ahead of the market for a long time. In practice, the entire computer components industry was ahead of the market at the same time as HP. What's more, HP didn't even outperform all of its competitors within the industry. Looking at this and other examples, the authors of Creative Destruction wondered if there were any “visionary” companies that were ahead of the market for a long time? In addition, we all had the opportunity to observe the stagnation or decline in activity Japanese companies who, in their heyday, in the late 1970s and early 1980s, were known as "revolutionary" strategists.
If, on the other hand, there are no ever-high-performing companies, and if the same company alternately achieves unparalleled success and declines, it turns out that the company cannot be considered an appropriate unit of analysis in the study of sources of high efficiency and blue oceans.
As discussed above, history also shows that industries have never ceased to emerge and expand, and that the conditions and boundaries of an industry are fluid; they are set by individual entities. Companies do not need to clash foreheads in the space of one industry or another; Cirque du Soleil has created a new market space in the entertainment sector and has achieved strong earnings growth as a result. It turns out that neither the company nor the industry can be considered the optimal unit for analyzing the sources of profitable growth.
In line with this, our research has shown that it is "strategic move" - not "company" or "industry" - that is the appropriate unit to explain the creation of blue oceans and the permanent high performance of companies. A strategic move is a set of management actions and decisions related to the development of a major business proposal that creates new market. For example, Compaq was acquired by Hewlett-Packard in 2001 and lost its independence. As a result, many labeled the company as a loser. However, this did nothing to devalue Compaq's blue-ocean strategic move to shape the server industry. These strategic moves were not only part of the company's powerful re-entry into the market in the mid-nineties, but also paved the way for a new multi-billion dollar market in the computer hardware industry.
Appendix A, Blue Ocean Creation Pattern Historical Sketch, provides a concise overview of the history of three emblematic US industries based on our database: automotive, the way we get to work; computer - what we use at work; film industry - where do we go to have fun after work. As shown in Appendix A, invariably successful companies or industries do not exist. However, the strategic moves that have led to the creation of blue oceans and new trajectories of strong earnings growth are strikingly similar.
The strategic moves we're talking about - steps to create products and services that open up and conquer new market spaces with skyrocketing demand - are exciting tales of profitable growth, stories that make you think about the opportunities missed by those companies that are stuck in scarlet oceans. We built our research around these strategic steps to understand how blue oceans are created and how high performance is achieved. We have studied more than 150 strategic moves made between 1880 and 2000 in more than 30 industries, and have carefully researched the business players involved in each of these events. Industries ranged from the hotel, film, retail, air travel, energy, computers, broadcasting, and construction industries to the automotive and steel industries. We analyzed not only the winners who managed to create blue oceans, but also their less successful competitors.
As within each individual strategic move, as in the entire set of strategic moves, we looked for similarities within the group that created the blue oceans and among the less fortunate players stuck in the red ocean. We also searched for the differences that exist in these two groups. In our search, we tried to identify the common factors that led to the creation of blue oceans, as well as the key characteristics that distinguish the winners from the simple "survivors" and losers drifting in the red ocean.
As a result, after examining more than thirty industries, we found that neither the characteristics of the industry nor the characteristics of the organization can explain the differences that exist between these two groups. In assessing the variables of industry, organization, and strategy, we found that both small and large companies succeeded in creating and conquering blue oceans, both young and old managers, companies from attractive and unattractive industries, newcomers and real mastodons, private and state companies, representatives of low-tech and high-tech industries, as well as companies of a wide variety of national origins.
In our analysis, we did not find a single permanently flawless company or industry. However, behind the apparent diversity of success stories, it was still possible to find a consistent and inherent set of strategic steps for creating and conquering blue oceans. Was it Ford in 1908 with its Model T; GM, which produced elegant cars with emotional appeal in 1924; CNN, which offered real-time news twenty-four hours a day, seven days a week in 1980; or Compaq, Starbucks, Southwest Airlines, or Cirque du Soleil, or any other blue ocean entry that we have studied in our research—regardless of the industry, the approach to blue ocean strategy has always been the same. Our research also covered famous strategic moves that led to radical changes in the public sector. And here we found a stunningly similar action pattern.
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Title: Blue Ocean Strategy. How to find or create a market free from other players
Author: Rene Mauborgne, Kim Chan
Year: 2005
Genre: Job search, career, Marketing, PR, advertising, Foreign business literature
About Blue Ocean Strategy. How to find or create a market free from other players Rene Mauborgne, Kim Chang
Blue Ocean Strategy. How to Find or Create a Market Free from Other Players by René Mauborn and Kim Chan is a popular book on business rules. It offers a unique model for creating and developing startups.
Written in simple, lively language, this book has been translated into 40 languages and published in over 2 million copies. What's more, it was twice in the top ten business books of the decade. In the years since it was published, this piece has been in the top 10 best business titles on Amazon.com.
The Blue Ocean Strategy is not just a business guide. This is a kind of philosophy that offers a completely different approach to the process of doing business.
Today, many works say that in order to create successful project need to get out of the market. However, only Blue Ocean Strategy explains how to achieve this breakthrough.
So, the book “Blue Ocean Strategy. How to Find or Create a Market Free from Other Players by René Mauborn and Kim Chan is actually divided into two parts. The first introduces the reader to the very concepts of "blue" and "scarlet" oceans. The authors believe that modern business is built in the "red ocean", that is, in an environment overflowing with competition. Here, each new participant is trying to "bleed" a fellow competitor.
While the "blue ocean" is a place where there is no competition. In fact, every entrepreneur who does not want to fight competitors must open his own “blue ocean”. In addition, this half of the work will tell you how to create your own unique strategy, which will lead to success in the future.
The second part of the book will discuss how to avoid failure. The fact is that quite often mediocre execution of tasks leads to serious problems. This half of the book is dedicated to good governance staff.
Blue Ocean Strategy book. How to find or create a market free from other players ”by René Mauborn and Kim Chan differ from her like in several ways. important points: a living language, systematization of the experience of various, dissimilar companies, creative motivation for entrepreneurs, the commercial side of the issue is described in detail.
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Quotes from the book Blue Ocean Strategy. How to find or create a market free from other players Rene Mauborgne, Kim Chang
A company should never outsource its own eyes.
The key to defeating opponents, or demons, is to know all the likely directions of attack and be able to build counterarguments, backed up by hard data and logic.
Louis Pasteur "Fate favors only prepared minds"
However, in emphasizing early movers, senior management must be aware that early adopters, despite low growth potential, are often the main cash generators of the company at the moment. Pioneers, on the contrary, have the maximum potential for growth, but initial stage growth and expansion require significant cash investment.
By applying the Four Actions model to your industry's strategy canvas, you gain a whole new perspective on old conventional wisdom.
Great artists do not paint their pictures from the words of other people and even from photographs, considering it necessary to see nature with their own eyes. The same is true of great strategists.
The world market was oversaturated with wine, but producers could hardly keep up with the demand.
A blue ocean was created, instead of offering wine as wine, Casella Wines created a party drink that catered for everyone - beer drinkers, cocktail drinkers, and non-wine drinkers.
Obviously, the main task of top management is to manage their portfolio of businesses in such a way that a reasonable balance is achieved between profitable growth and cash flow at any given time.
No one can “see for yourself” anything for you.
Free download of the book Blue Ocean Strategy. How to find or create a market free from other players Rene Mauborgne, Kim Chang
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You are holding Blue Ocean Strategy, the world's most famous strategy book, translated into 40 languages. It is based on simple idea. It is better to find your own blue ocean than to remain in the scarlet ocean with fierce competition that exhausts all players in this industry. Dozens of examples and suggested methodology will help you find your blue ocean.
What is Blue Ocean Strategy about?
We used to think that competition is a symbol of a healthy business. However, every year the competition becomes more and more intense, and the struggle for the sympathy of the consumer (and his wallet) is more and more bloody. The business ocean has turned red, and it is becoming increasingly difficult to survive in it.
The authors of the "Strategy" are sure that you need to step aside and come up with something completely new. And then in the calm waters of the Blue Ocean, your business will achieve the desired growth. Jang Kim and Mauborgne Propose detailed instructions to take the company out of competitive stress and create an entirely new business model.
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Blue ocean strategy. How to find or create a market free from other players
Rene Mauborgne, Kim Chan
PDF, Epub, FB2, TXT
Why we decided to publish this book
This book has been translated into 40 languages and published in more than 2 million copies, it was twice in the top ten business books of the decade, was the best business book of 2005 at the Frankfurt book fair and has received numerous other awards from reputable business publications. In the 7 years that have passed since its publication, the book has not left the Top 10 Best Business Books on Amazon.com and has collected more than 250 positive reviews there. It's time to acquaint the domestic reader with one of the best business books of our time.
Who is this book for?
For those who do not want to fish in muddy scarlet water, those who are looking for an ocean of new opportunities (for example, fittings STO CKTI 462.05-2009). This is a book for the real business leaders of the future.
Book chip
Blue Ocean Strategy is not just a book, but a whole philosophy of success. There is even a business institute of the same name.
From the authors
We've learned from experience that people, like corporations, sometimes do smart things and sometimes not. To be more successful, we need to understand how we got the positive result and how we can replicate it systematically. This is what we call smart strategic moves, and, as we have established, the strategic move to create blue oceans is of paramount importance.
The blue ocean strategy aims to encourage companies to break out of the scarlet ocean of competition by creating a market niche for themselves where they can not be afraid of competitors. The blue ocean strategy proposes to move away from sharing existing - and often decreasing - demand with others, while constantly looking at competitors. Instead, she suggests dedicating ourselves to creating new, growing demand and moving away from competition.
The book not only encourages companies to take this step, but also explains what needs to be done. First, we give you a set of analytical tools and perspectives that show you what systematic actions to take along the proposed path, and then we look at the principles that define blue ocean strategy and distinguish it from strategic approaches that are based on competition.
About authors
Rene Mauborgne— Professor of Strategy at INSEAD, Director of the INSEAD Institute for Blue Ocean Strategy, ranked second on the Thinkers50 list in 2011 (the only woman to climb this list).
Chan Kim- Director of the INSEAD Blue Ocean Strategy Institute, author of publications on management theory and strategy, ranked second on the Thinkers50 list in 2011.
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