Blue Ocean Strategy

It is based on a sample study of 108 firms observed over 100 years in 30 industries. The authors, Chan Kim and Renee Mauborgne, demonstrate the long-lasting success that comes from not fighting rivals but creating a blue ocean - pristine but ready for fertility. The book has become a global phenomenon with more than 4 million copies sold, breaking records by being translated into 46 languages and becoming a bestseller on all five continents. The Blue Ocean Strategy systematically approaches the marketin a way that makes competition irrelevant and helps you create your own blue ocean! They show you what makes this strategy different from the rest. How to push the boundaries in the market, how to reach levels that don't exist yet, how to overcome entrepreneurial barriers as they are used to the old way and how to implement the theory in real life. "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. Instead, create new value and broaden the existing spectrum. Doing so will put you in a more profitable position, in the so-called blue ocean, where competition is irrelevant. In the study mentioned above, the authors observed the development of 108 companies. What they found was that when a new firm tried to compete with an existing one and gain market share, they made significantly lower profits than those who avoided confrontation. Of the 108 companies, 16 followed the Blue Ocean strategy by creating a new product category. These 16 companies pocketed 61% of total profits! What's more, those who chose this strategy dominated their market category for 10-15 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."