In their work since the launch of their 2005 book, the authors have found three key components in successful Blue Ocean shifts:

It expands the universe as to what is possible, often enabling higher value at lower cost.įrom market-competing to market-creating: Image from Blue Ocean Shift by Professors Kim & Mauborgne Professors Kim & Mauborgne: (Hachette)

It opens up new possibilities that are not available to organizations operating within the existing cost-value structure. In effect, Blue Ocean strategy involves market-creating innovation. It transformed the market for French fry makers. The Acti-Fry made healthier French fries with only one table spoon of oil for two pounds of French fries.

The French Groupe SEB found success by slipping out of the intensely competitive market for conventional French fry makers, by creating a French fry maker that operated without the hassle of heating large quantities of oil.The National Youth Orchestra of Iraq found success by “reducing the emphasis on technical excellence and a sophisticated European repertoire” and instead focusing on “the power of music to bridge the deepest divides and highlight Iraq’s rich heritage.” Abandoning expensive guest conductors and soloists and European repertoire, the orchestra comprises young men and women from all Iraqi ethnic and religious groups.The book includes many illuminating examples of Blue Ocean strategy in action, including: It sold more than 4 million copies and has been translated into 44 different languages. What inspired the authors was not “dividing up markets or the globe,” but rather organizations and individuals that created “new frontiers of opportunity, growth, and jobs,” where success was not about fighting for a bigger slice of an existing, often shrinking pie, but about “creating a larger economic pie for all.” The book was a publishing sensation. After all, which firm would not to be operating in “uncontested market space,” where “competition was irrelevant”? Instead of struggling to survive in the bloody shark-infested “Red Oceans” of vicious competition, why not move to the “Blue Oceans” where there was little or no competition? Chan Kim and Rénee Mauborgne, launched a revolution in business strategy.

In 2005, Blue Ocean Strategy, Expanded Edition: How to Create Uncontested Market Space and Make the Competition Irrelevant, a book by Professors W.

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