Blue Ocean Strategy

It draws on a study of 150 strategic moves spanning more than 100 years and 30 industries. The authors, Chan Kim and Renee Mauborgne, show that long-lasting success comes from creating a blue ocean, untouched waters ripe for growth, rather than from fighting rivals. The book has become a global phenomenon. It's sold more than 4 million copies, broken records with translations into 46 languages, and become a bestseller on all five continents. Blue Ocean Strategy gives you a systematic way to approach the market that makes competition irrelevant, and it helps you create a blue ocean of your own! The authors show what sets this strategy apart from the rest. They explain how to push the market's boundaries and how to reach levels that don't exist yet. They also cover how to get past the barriers entrepreneurs face because they're used to the old way, and how to put the theory into practice. "The only way to win the race is to stop trying to win the race." If you want to start a successful business, don't waste your time fighting for market share. Create new value instead, and broaden the existing range. That'll put you in a more profitable position, in the so-called blue ocean, where competition no longer matters. In a separate study, the authors looked at the business launches of 108 companies. They found that launches that took on existing rivals to win market share made far lower profits than launches that steered clear of confrontation. Only 14% of the launches followed the blue ocean strategy and created new market space. Those launches brought in 38% of total revenues but 61% of total profits! And the ones that chose this strategy dominated their market category for 10 to 15 years. "The companies that have entered the red ocean are taking a conventional approach, rushing to win by creating a defensible position in an existing market segmentation."