Book Excerpt: Blue Ocean Strategy

Authors: W. Chan Kim & Renee Mauborgne

Key Concepts

Creating Blue Ocean Strategy
The cornerstone of Blue Ocean Strategy is “value-innovation”. It is the interplay between company’s cost structure and its value proposition to buyers.

Reconstruct Market Boundaries
Six path frameworks in reconstructing market boundaries do not require special vision or foresight about future. Just look at familiar data from a new angle.

Focus on the Big Picture not the Number
Making use of strategy canvass to unlock the organisation’s creativity and to communicate for effective execution.

Reach Beyond Existing Demand

Look for non customers and build on powerful commonalities in what buyers value.

Get the Strategic Sequence Right
Adhere to the steps in strategic sequence from buyer utility to price, cost and adoption to come up with a commercially viable blue ocean ideas.

Overcome Key Organisational Hurdles
Use Tipping Point Leadership to overcome the four identified organisational hurdles.

Building Execution into Strategy
The presence or absence of “fair process” can make or break a company’s best execution effort.