Book review: Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant by W. Chan Kim

Blue Ocean Strategy (2005) penned by W. Chan Kim and Renée Mauborgne charts a course for businesses to navigate the unchartered waters of uncontested market space. In an ever-evolving business landscape where competition is rampant, Kim and Mauborgne’s strategy provides an ingenious route to making that competition irrelevant.

The authors posit an innovative theory that urges businesses to move away from ‘Red Oceans’ — a metaphor for saturated markets rife with competition, towards ‘Blue Oceans’ — symbolizing untapped, competitor-free markets. They present a compelling argument, supplemented by a range of real-world case studies and a structured framework to turn theory into practice.

The strength of this book lies in its unconventional approach to market innovation. Kim and Mauborgne eloquently lay out how companies can break away from the traditional competitive strategies and create new market spaces. They provide readers with analytical tools and frameworks like the ‘Strategy Canvas’, ‘Four Actions Framework’, and the ‘Eliminate-Reduce-Raise-Create Grid’, all of which serve as comprehensive guides for implementing their strategy.

The book isn’t without its limitations. While the ‘Blue Ocean Strategy’ is inspiring and eye-opening, the process of discovering a blue ocean isn’t as straightforward as it’s made out to be. It requires significant ingenuity, resources, and risk-taking, aspects that may be challenging for some businesses to harness effectively.

Nonetheless, ‘Blue Ocean Strategy’ is a remarkable addition to business literature. It compares favorably to other influential business books such as Clayton M. Christensen’s ‘The Innovator’s Dilemma’ in its aim to inspire businesses to shift paradigms. While Christensen’s book focuses on disruptive technologies, Kim and Mauborgne emphasize the importance of disruptive thinking.

The authors’ work holds value for a broad readership — from seasoned executives and budding entrepreneurs to business students. Although some may find the proposed strategy a bit radical or risky, the detailed examples and in-depth analysis make the content accessible and engaging.

In conclusion, ‘Blue Ocean Strategy’ by W. Chan Kim and Renée Mauborgne offers a fresh and provocative perspective on competition and strategy. While the concept may be challenging to implement, the shift in mindset it instigates is invaluable for businesses in today’s crowded marketplace.

Despite a few shortcomings, ‘Blue Ocean Strategy’ is a compelling read, providing a novel perspective on strategic thinking. Its detailed analysis, real-world examples, and practical tools make it a worthy addition to any business enthusiast’s library. It serves as a reminder to continually question the status quo and seek untapped opportunities.

As a final note, I’d recommend ‘Blue Ocean Strategy’ to anyone involved in business strategy and innovation. It’s an insightful read that challenges traditional thinking and pushes for creativity and innovation — two attributes that are increasingly becoming the key differentiators in today’s fast-paced business world. Remember, it’s not just about swimming better in the existing ocean but about finding new waters to explore.

Practical pieces of advice that can be gleaned from Blue Ocean Strategy:

Find Uncontested Markets: Don’t be satisfied with fighting in oversaturated markets. Instead, look for opportunities in uncontested market spaces. Seek to understand unmet needs or explore emerging trends that could lead to a new market space.

Use the Strategy Canvas: One of the most valuable tools introduced in the book is the Strategy Canvas. It’s a visual tool that allows you to plot your current strategy against competitors, helping identify where you can differentiate your offerings.

Apply the Four Actions Framework: This is another tool in the book that challenges businesses to question every factor of competition in their industry. The framework encourages companies to consider which factors to eliminate, reduce, raise, or create in their industry to make competition irrelevant.

Value Innovation Over Competition: The book advises readers to focus on ‘value innovation’ — creating a leap in value for buyers while also driving down organizational costs. It involves thinking outside the conventional market boundaries and focusing on the bigger picture rather than obsessing over the competition.

Get the Strategic Sequence Right: Kim and Mauborgne emphasize that companies need to align their strategy with the right sequence to mitigate risk and maximize success. This includes buyer utility, price, cost, and adoption.

Think in Terms of Buyer Utility and Price: Understand what factors truly matter to the customers. It’s essential to focus on the value proposition and align your product/service to meet the buyer’s key utility levers at the correct price.

Build Execution into Strategy: ‘Blue Ocean Strategy’ argues that effective execution is as important as a sound strategy. A company needs to have the resource management skills, process, and communication strategies in place to bring a blue ocean strategy to life.

Overcome Key Organizational Hurdles: Anticipate resistance to change and strategically plan to overcome these hurdles. This involves motivating your employees, building a culture that is open to change, and securing management commitment.

Sustain Blue Oceans: The creation of a Blue Ocean is only the beginning. Maintaining its value and keeping it uncontested requires continuous innovation, monitoring, and adjustment of the strategy as markets evolve and new opportunities arise.