Blue Ocean Strategy

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Creating uncontested market space. Explanation of Blue Ocean Strategy of W. Chan Kim and Renée Mauborgne. ('04)


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Blue Ocean Strategy Red Ocean

What is Blue Ocean Strategy? Description

Rather than competing within the confines of the existing industry or trying to steal customers from rivals (Bloody or Red Ocean Strategy) W. Chan Kim and Renée Mauborgne are suggesting Blue Ocean Strategy: developing uncontested market space that makes the competition irrelevant.

According to Kim and Mauborgne in the HBR of October 2004, competing in overcrowded industries is no way to sustain high performance. The real opportunity is: to create blue oceans of uncontested market space.

Competitive Advantage critique

Of course competition is important. But by focusing on competition and competitive advantage, according to Kim and Mauborgne, scholars, companies, and consultants have ignored two very important - and far more lucrative - aspects of strategy:

  • To find and develop blue oceans, and
  • To exploit and protect blue oceans. These challenges are very different from those to which strategists have devoted most of their attention.

In blue oceans demand is created, rather than fought over. There is ample opportunity for growth that is both profitable and rapid.

Two ways to create blue oceans

  1. One is to launch completely new industries, as eBay did with online auctions.
  2. It is more common for a blue ocean to be created from within a red ocean when a company expands the boundaries of an existing industry.

Certainly Kim and Mauborgne deserve credits for having made the point of the over-focus on competitive advantage and also for their beautiful metaphor of the two types of oceans.

Book: W. Chan Kim, Renée Mauborgne - Blue Ocean Strategy -

Blue Ocean Strategy Forum
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Blue Ocean Strategy Education & Events

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Best Practices - Blue Ocean Strategy Premium
  'Purple' Ocean Strategy
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  Why is it called 'Blue' Ocean Strategy?
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  Blue Ocean Strategy Disadvantages
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  Blue Ocean Strategy in Small Companies
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  Differences in BOS / ROS Cultures
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  What is a Strategic Sequence?
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  Can a Blue Ocean Eventually Turn Into a Red Ocean?
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  Six Paths to Moving from Red to Blue Ocean
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  Creating a New Mental Category
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  Porter Model vs Blue Ocean Strategy
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  Visionary Leadership and Blue Ocean Strategy
  BOS: more of the same
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  How to Avoid Imitation of Blue Ocean Strategy?
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Expert Tips - Blue Ocean Strategy Premium

Diagnostic Framework for Building a Blue Ocean StrategySign up

Kim and Mauborgne introduce in their book an inter...
Usage (application): Blue Ocean Strategy Formation

Challenging the Existing Strategic LogicSign up

A great BOS-tool Kim and Mauborgne described is th...
Usage (application): Blue Ocean Strategy Tools

How to Find Good Product Ideas? List of 10 ApproachesSign up

In his book “Product Leadership: Creating and L...
Usage (application): Discovering New-Product Ideas, Creative Approaches

Blue Ocean Strategy Tools, Frameworks and MethodologiesSign up

Summaries of 12 Blue Ocean Strategy tools by Kim &...
Usage (application): Summaries of all BOS Tools

Innovation PitfallsSign up

Harvard Professor R. Moss Kanter describes 4 commo...
Usage (application): Avoiding Innovation Traps

The Value Creation Logic TypesSign up

Based on Stabell and Fjeldstad’s value creation lo...
Usage (application): Discovering Blue Oceans

Recent Innovation Trends | New Innovation TypesSign up

Roland Bel (2012) outlines and explains four types...
Usage (application): Open innovation, User Innovation, Value Innovation, Bottom-up Innovation

How to Detect Consumer Needs that are Unmet?Sign up

In their article New Business Models in Emerging M...
Usage (application): Product Innovation, New Product Development, Innovation Strategy

How to Find or Create A Blue Ocean?Sign up

In their book: Blue Ocean Strategy: How to Create ...
Usage (application): Approaches to Reconstruct Market Boundaries

Pitfalls and Obstacles in Product Development StrategySign up

Although product development can be an important g...
Usage (application): Product Development, Product Portfolio Management

A Closer Look Into Customer ValueSign up

It is often argued that customer value is required...
Usage (application): Customer Value Analysis, Strategic Marketing, Innovation Strategy

How to Determine the Right PRICING?Sign up

One major part of the Blue Ocean Strategy is the S...
Usage (application): Steps to Strategic Pricing

Value Innovation Strategy Best PracticesSign up

The fundamentals of the "Blue Ocean" concept can b...
Usage (application): Understanding the Fundamentals of Blue Ocean Strategy

How to Think Differently in Blue Ocean Strategy and Innovation?Sign up

Strategy is always related with risk, due to marke...
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In recent years, the challenges to incumbent major...
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Innovating by Reconsidering Value DeliverySign up

When innovating their business model, companies ne...
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Classes of Innovation | Sources of InnovationSign up

Innovation can be t...
Usage (application): Innovation, Creativity, Organizational Innovativeness, Lateral Thinking, Out of the Box Thinking, Blue Ocean Strategy

In Which Direction Should we Grow our Portfolio?Sign up

According to Professor Aneel G. Karnani in 'Master...
Usage (application): Portfolio Strategy, Innovation Strategy

How to Design Experiments to Support Decision-making on Strategic InnovationsSign up

The probability of success of a major innovatio...
Usage (application): Strategic Innovation, Strategic Decision-making, Strategic Experimenting, Experiments, Strategic Testing, Innovation Tes

How to Lead an Innovation TeamSign up

In order to become a great innovation team leader,...
Usage (application): Best Practices, Innovation Team Management

What Makes a Company Innovative?Sign up

A futurethink 2006 Innovation Tracker Survey menti...
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Christensen explains why many firms, especially la...
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Designing Complex Products or Systems Through Iterative Rapid-cycle PrototypingSign up

Today, organizations are increasingly developing a...
Usage (application): Design Thinking, Disruptive Innovation, Blue Ocean Strategy, Introducing Complex Systems, Co-Creation

Entrepreneurial Strategies in Emerging MarketsSign up

Chanvatipsakul and Wongsurawat (2013) examined the...
Usage (application): Emergent Strategy, Entrepreneurship, Strategic Innovation

Resources - Blue Ocean Strategy Premium

Introduction to BOSSign up

Comprehensive presentation introducing BOS. Topics...
Usage (application): Comprehensive Presentation Introducing BOS

Conversation with Chan Kim and MauborgneSign up

Interview with W. Chan Kim and Renee Mauborgne. 10...
Usage (application): Interview

Co-opetition, PARTS and Changing the Strategic GameSign up

Comprehensive presentation about the concept of co...
Usage (application): Business Strategy, Innovation Strategy

First Introduction to Blue Ocean StrategySign up

Short visual introduction of the 2 types of strate...
Usage (application): Understanding the Definitions of Blue and Red Ocean Strategy

Techniques for Entrepreneurial ThinkingSign up

This presentation elaborates on the different type...
Usage (application): Entrepreneurship, Critical Thinking, Creative Thinking, Lateral Thinking, Entrepreneurial Thinking

Reinventing your Business ModelSign up

A presentation that clearly explains the concept o...
Usage (application): Business Model Change, Strategic Innovation

The Importance of NoncustomersSign up

Even the biggest enterprises (other than a governm...
Usage (application): Market Research, Customer Strategy, Innovation Strategy, Customer Survey Pitfalls

Blue Ocean Theory Success StoriesSign up

In world’s business today many companies are swim...
Usage (application): Short Introduction and Success Stories of BOS

Blue and Red Ocean Strategy DiagramSign up

Download and edit this 12manage PowerPoint graphic...
Usage (application): Strategic Innovation

News about Blue StrategySign up


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Videos about Blue StrategySign up


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Presentations about Blue StrategySign up


Presentations about Red StrategySign up


Books about Blue StrategySign up


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More about Blue StrategySign up


More about Red StrategySign up


Compare with Blue Ocean Strategy:  Business Process Reengineering  |  Product/Market Grid  |  Core Competence  |  BCG Matrix  |  McKinsey Matrix  |  Resource-Based View  |  Disruptive Innovation  |  Forget Borrow Learn  |  Rule of Three  |  Strategic Types

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