Book Summary: Blue Ocean Strategy by W. Chan Kim

Blue Ocean Strategy by W. Chan Kim Book Cover

Blue Ocean Strategy is a business book written by W. Chan Kim and Renée Mauborgne. The book was first published in 2005 and has since become a bestseller, with over 3.5 million copies sold worldwide. The idea behind the book is to introduce a new way of thinking about business strategy, focusing on creating new markets rather than competing in existing ones.

Chapter 1: The Concept of Blue Ocean Strategy

The first chapter of the book introduces the concept of Blue Ocean Strategy. Kim and Mauborgne define a blue ocean as a market space where there is little or no competition, where the demand is untapped, and where there is plenty of room for growth. The authors argue that companies should focus on creating their own blue ocean rather than competing in a crowded, red ocean of existing competitors.

Chapter 2: How to Find Blue Oceans

In the second chapter, the authors explain how to find blue oceans. They suggest looking for industries that are not yet saturated and where there is a high demand for products or services. The authors also recommend looking for industries that are not yet served by existing competitors, as well as finding ways to create new demand through innovation and differentiation.

Chapter 3: How to Create Blue Oceans

The third chapter of the book focuses on how to create blue oceans. Kim and Mauborgne suggest looking for ways to create new demand through innovation and differentiation. They also recommend finding ways to make products or services more affordable or accessible to a wider audience. The authors argue that companies can create blue oceans by redefining industry boundaries and creating new market spaces.

Chapter 4: How to Capture Blue Oceans

In the fourth chapter, the authors discuss how to capture blue oceans once they have been identified. They suggest focusing on creating a unique value proposition that sets the company apart from competitors. The authors also recommend creating a brand that is associated with the blue ocean strategy and building a culture that supports the strategy.

Chapter 5: The Anatomy of Blue Ocean Strategy

The fifth chapter of the book examines the anatomy of blue ocean strategy. Kim and Mauborgne introduce the concept of strategic canvases, which are visual tools that help companies map out their strategies. The authors also introduce the idea of the “strategic curve,” which shows how companies can achieve high performance by balancing different strategic approaches.

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Conclusion

Blue Ocean Strategy is a powerful concept that has the potential to change the way companies think about business strategy. By focusing on creating new markets rather than competing in existing ones, companies can achieve high performance and sustainable growth. The book provides a clear framework for finding, creating, and capturing blue oceans, and is a must-read for anyone interested in innovation and strategic thinking.

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