Create a Blue Ocean Strategy to Become an Expert in YOUR Field
I’m still reading Blue Ocean Strategy by W. Chan Kim and Renee Mauborgne. My business partner and friend, Russ, had been recommending it for a while now. I’m glad I am. It’s one of those pivotal books for me.My dear friend and business partner, Russell Cox, has been talking about Blue Ocean Strategies for some time. He brought it up again during a recent conversation with Rick Hadsock, the third in our team.
What’s a Blue Ocean and why is it important to you and me? “Blue oceans are defined by unknown, and therefore, untapped market space, demand creation, and the opportunity for highly profitable growth.”
This is compared with Red Oceans which represent all industries in existence today in which “industry boundaries are defined and accepted, and the competitive rules of the game are known. Here, companies try to outperform their rivals to grab a greater share of existing demand. As the market space gets crowded, prospects profits and growth are reduced. Products become commodities, and cutthroat competition turns the red ocean bloody.
“Although some blue oceans are created well beyond existing industry boundaries, most are created from within red oceans by expanding existing industry boundaries. In blue oceans, competition is irrelevant because the rules are waiting to be set.
“It will always be important to swim successfully in the red ocean by outcompeting rivals. Red oceans will always matter and will always be a fact of business life. But with supply exceeding demand in more industries, competing for a share of contracting markets, while necessary, will not be sufficient to sustain high performance. Companies need to go beyond competing. To seize new profits and growth opportunities, they also need to create blue oceans.”
If you want to learn more without (or before) reading the book, click on this link. You’ll be taken to a website from which you can download files about Blue Ocean Strategy ~ a few summary slide presentations,
The best files start with Blue Ocean Strategy. Start with them.
Enjoy and happy sailing!
Add comment December 3rd, 2009
