Sunday, August 14, 2011

Management Theories # 14 - Blue Ocean Strategy

Blue Ocean Strategy is a business strategy book that promotes a systematic approach "for making the competition irrelevant." The authors, W.Chan Kim and Renée Mauborgne, are professors of Strategy and Management at INSEAD ( is an international graduate business school and research institution with campuses in France and in Singapore).

A core idea is to create a leap in value for both the company and its buyers by breaking the differentiation/low cost trade-off and to align product value and profit propositions.

Blue Ocean Strategy is the result of a decade-long study of 150 strategic moves spanning more than 30 industries over a period of 120 years (1880-2000).

In addition to retrospective case studies, the book offers theoretical approaches and practical tools to create and capture "blue oceans" of uncontested market space ripe for growth.

Kim and Mauborgne argue that tomorrow’s leading companies will succeed not by battling competitors, but by creating these “blue oceans”.

This best seller sold more than a million copies in its first year of publication and is being published in 39 languages.

A quick snapshot of the concept is represented below:

For further details, visit the official website at http://www.blueoceanstrategy.com/ or check out http://en.wikipedia.org/wiki/Blue_Ocean_Strategy/

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