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14 min 33 sec
Available in:Englishไทย

Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant

Shows how companies can stop fighting rivals over a fixed market and create new demand instead, by cutting what buyers ignore, adding what nobody offers, and pricing for people who have never bought.

Table of Content

Most companies grow by trying to outrun their rivals, a little cheaper or a little faster each year, until every offer looks the same and margins vanish. In Blue Ocean Strategy, INSEAD professors W. Chan Kim and Renée Mauborgne argue that the richer prize lies in markets nobody is fighting over, because nobody has created them yet. They build the case on roughly 150 strategic moves across more than 30 industries, from about 1880 to 2000.

Their claim, in one sentence: profitable growth comes from creating new demand, and you create it by redesigning an offering so that it costs less to make and is worth more to buyers at the same time. A circus without animals, a wine that stopped acting like wine and a police force with a frozen budget all show how. What you take from them is a one-page picture of your industry, four moves to redraw it, and a way to bring your people along.

Matching rivals feature for feature feels like the safe choice, yet it may be one of the riskiest bets in business. Two numbers from the authors’ research point to where the real profits have been hiding.

A circus company in a declining industry dropped its animal acts and, in under twenty years, reached revenues that Ringling Bros. and Barnum & Bailey needed more than a century to attain. The trick was refusing a trade-off that most managers accept without a second thought.

One simple chart can reveal why customers cannot tell you apart from your rivals. An Australian winery used the same thinking, and four plain moves, to beat its own sales forecast many times over.

Some of the largest new markets were found by companies that studied a pencil, a secretary or a haircut. Six directions reveal where your industry’s real borders lie, and how often they are imaginary.

The people who never buy from you may matter more than your most loyal customers. A carmaker offers a related example: Ford’s Model T sold for half the price of other cars, while standardization and the assembly line pushed its costs down.

A police commissioner with no extra money cut New York’s murders in half. His way of changing stubborn minds began on a subway train and in a cramped patrol car.

What the book finally changes is the comparison you make. Rivals can only show you the market that already exists. Noncustomers, neighboring industries and the people who actually use a product show you markets that could. Cirque, Yellow Tail and the Model T each won by changing what buyers measured them against.

No ocean stays blue forever, and the authors know it. The expanded 2015 edition adds advice on renewing a blue ocean before rivals crowd in, and on the traps that pull managers back, such as listening only to current customers or confusing market creation with new technology. Google Glass, launched in 2012 at $1,500 and withdrawn for redesign within two years, is one of their warnings. Outside researchers add balance: a 2009 Erasmus University study of 41 Dutch retail shop types found blue ocean and competitive strategies overlapping, with the blue ocean approach dominant over the long run.

The work can begin on one sheet of paper. Draw your industry’s value curves and notice where yours hugs the pack. Pick one factor to eliminate and one to create. Then name a price for the people who have never bought from you, and make the cost fit it. The sharks only matter if you stay in their water.

About this book

What is this book about?

In most industries, companies compete the same way: match rivals, cut prices, add features, repeat. Margins shrink and products start to look alike. W. Chan Kim and Renée Mauborgne argue that the most profitable growth comes from leaving that fight. They call crowded existing markets red oceans, and the industries nobody has created yet blue oceans. Drawing on a study of about 150 strategic moves across more than 30 industries, the authors show how firms such as Cirque du Soleil, Yellow Tail, Ford and Canon made rivals irrelevant. Their central idea, value innovation, pursues low cost and differentiation together. Their tools make it practical: a one-page strategy canvas, four actions to eliminate, reduce, raise and create, six ways to look beyond an industry's borders, and a fixed order for setting utility, price and cost. The book also tackles execution. Through police commissioner Bill Bratton's turnaround in New York, it shows how to change an organization with limited money by focusing on the few people and actions that carry the most influence.

Book Information

Rating:

Genre:

Management & Leadership

Topics:

Business Models, Change Management, Competitive Strategy, Innovation

Publisher:

Harvard Business Review Press

Language:

English, ไทย

Narrator:

Emily

First published:

January 1, 2005

Pages:

256

Length:

14 min 33 sec

Get the book:

Amazon

Who it's for

  • Stuck in price wars

    Founders and product leads stuck in price wars who need a different route to growth.

  • Wanting a one-page tool

    Managers and strategy teams who want a one-page tool to see where their industry has gone stale.

  • Team leaders needing buy-in

    Team leaders who must win real buy-in for a bold change with limited budget.

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About the Author

W. Chan Kim

W. Chan Kim and Renée Mauborgne teach strategy at INSEAD, the business school based in France, and co-direct its Blue Ocean Strategy Institute in Fontainebleau. Their later book, Blue Ocean Shift, became a New York Times bestseller. In 2019, Thinkers50 ranked them the most influential management thinkers in the world, and Mauborgne was the first woman to reach the top spot. Both are Fellows of the World Economic Forum and co-founders of the Blue Ocean Global Network. Mauborgne also served on a presidential advisory board for Historically Black Colleges and Universities during both of Barack Obama's terms.

Ratings & Reviews

Ratings at a glance

4.1

Overall score based on 675 ratings.

What people think

Listeners find this business text to be a premier selection, highlighting its transparent, incremental methodology and practical insights. The work introduces a stimulating conceptual framework that broadens strategic perspectives, and listeners value how it aids in evolving companies into more formidable competitors. They appreciate the creative concepts and authentic case studies, establishing it as a highly useful tool for entrepreneurs and company leaders.

Top reviews

Hunter

Blue Ocean Strategy changed how I view market saturation. Most business books just tell you to be better, but Kim and Mauborgne explain how to be different. The framework for value innovation—simultaneously lowering costs and increasing value—is a complete game-changer for entrepreneurs. It’s not just theory; they provide tools like the Strategy Canvas to help you visualize your current market position. Truth is, I used to obsess over what my competitors were doing daily. Now, I’m looking for the "blue oceans" where the competition is totally irrelevant. My only gripe is that it can feel a bit repetitive in the middle chapters. However, the core message is too vital to ignore.

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Henry

The genius here lies in the shift from benchmarking against rivals to creating a unique value proposition that customers actually care about. Most of us are stuck in a cycle of marginal improvements, but this book encourages a total leap in value. I found the examples of Southwest Airlines and Yellow Tail wine to be incredibly illustrative of how to simplify a product to reach a wider audience. The authors provide a roadmap that is both thought-provoking and actionable for small business owners. I’ve read a lot of fluff in this genre, but this one provides actual substance. It’s an essential resource if you want to stop fighting for scraps in a crowded market.

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New

Wow, it is rare to find a strategy book that actually gives you actionable frameworks instead of just vague anecdotes. The "Blue Ocean" concept is iconic for a reason; it provides a language for discussing innovation that goes beyond just "new technology." I loved the emphasis on utility, price, and cost positions all working in harmony to create a market breakthrough. The book is well-structured and moves at a good pace, making it easy to finish in a weekend. To be fair, you have to be willing to do the hard work of applying these tools yourself. It’s not a get-rich-quick scheme, but a serious discipline for long-term success.

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Pacharapol

Ever wonder why some brands seem to exist in a league of their own while others drown in price wars? This book provides the answer by illustrating how companies like Cirque du Soleil reimagined their entire industry. I appreciate the clear, step-by-step approach to moving away from "red oceans" full of bloody competition. The writing is crisp and professional, which makes the complex frameworks easier to digest during a commute. Personally, I found the section on "non-customers" to be the most enlightening part of the entire text. It forces you to think about who isn't buying from you and why. Some examples are a bit old now, but the logic holds up.

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Ding

Finally got around to reading this classic business text, and the step-by-step methodology is surprisingly practical for a trade book. The central premise—that you should stop trying to beat the competition to actually win—is a refreshing take on corporate strategy. I particularly liked the focus on "Value Innovation" as a way to break the traditional value-cost trade-off. It’s not about being the cheapest or the best, but about being the only one doing what you do. Frankly, the diagrams are very helpful for visual learners who need to see the data. My team is currently using the Four Actions Framework to audit our current service offerings. It’s a solid read for any serious manager.

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Savannah

As someone who has struggled with brutal price wars in the manufacturing sector, this book felt like a breath of fresh air. It helped me realize that we were fighting for the same stagnant customer base instead of looking for new opportunities. The "Strategy Canvas" tool allowed us to see exactly where we were over-delivering on things that customers didn't even value. Not gonna lie, some of the terminology feels a bit like "consultant-speak," but the underlying logic is incredibly sound. It really opens your mind to new ways of thinking about growth and sustainability. I would recommend it to any entrepreneur who feels stuck in a saturated marketplace.

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Man

Picked this up for a project, but found myself applying it to my own business ventures almost immediately. The ERRC grid—Eliminate, Reduce, Raise, Create—is a simple yet powerful way to rethink your entire operation. It challenges you to look at industry standards and ask why they even exist in the first place. Some of the case studies, like the SONY Walkman, are definitely dated, yet the principles of strategic moves remain highly relevant today. Look, the book isn't perfect and it definitely oversimplifies some market complexities. But as a tool for sparking creativity and strategic thinking, it is one of the better ones on my shelf.

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Elan

To be fair, some of the case studies like NetJets or the Walkman feel a bit dated in our current hyper-speed tech landscape. However, the foundational idea of making the competition irrelevant through value innovation is timeless. The authors do a great job of explaining how to align the whole system of a company’s activities toward a new goal. It’s a very different approach than the usual "Porter’s Five Forces" style of competitive analysis we all learned in school. The writing is clear and the arguments are persuasive, even if they sometimes ignore the role of pure luck. It’s a thought-provoking read that will definitely change how you pitch your next big idea.

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Rohan

Not what I expected given the massive hype surrounding the "blue ocean" metaphor in business circles. The theory itself is quite obvious when you strip away the branding: find a niche where you have a monopoly. Of course, the hard part is actually finding that niche, and the book makes it sound much easier than it really is in practice. I did find the analytical tools useful for brainstorming, but the examples felt a bit tenuous at times. The writing style is definitely more academic than your average airport business book, which can be a slog. It’s a decent framework for thinking, but don't expect it to be a magic wand for your profits.

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Pierre

While the core concept is intriguing, I can't shake the feeling that this is just repackaged common sense hidden behind fancy jargon. The authors argue that companies should seek uncontested markets, which is something every sane business owner already tries to do. Looking back, it seems like they simply cherry-picked successful companies and retrofitted them into their specific framework. For instance, the NYPD turnaround story felt like a massive reach that didn't quite fit the business narrative. It's a classic case of survivorship bias where the failures are conveniently ignored to support the theory. If you enjoy HBR articles, you might like the style, but I found it oversimplified and a bit preachy.

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Questions about this book

Kim and Mauborgne argue that companies grow most profitably by creating new markets, which they call blue oceans, instead of fighting rivals over existing demand in red oceans. The key is value innovation: redesigning an offering so it costs less to deliver and gives buyers more value at the same time, as Cirque du Soleil did by dropping animal acts and adding music and storylines.

It asks which factors an industry takes for granted that you can eliminate, which you can reduce well below the standard, which you should raise well above it, and which new ones you can create. Filling all four boxes at once keeps costs down while setting you apart. Yellow Tail wine reduced the focus on prestige and aging and positioned itself against beer and cocktails.

A strategy canvas is a one-page chart. It lists the factors an industry competes on, shows how much of each the buyer receives, and draws a line, called a value curve, for each player. In crowded markets the lines tend to overlap, which reveals why buyers see little difference between companies and why prices keep falling.

Start by drawing your industry’s strategy canvas and filling the eliminate, reduce, raise and create grid. Study noncustomers, from those about to leave to those who never considered you. Then follow the authors’ sequence: exceptional buyer utility first, a price most target buyers can afford, then a cost that still yields profit, and finally removing barriers to adoption before launch.

No. The authors say red oceans will always matter, but competing for shrinking markets is not enough as supply overtakes demand in many industries. A 2009 Erasmus University study of Dutch retail found both approaches overlap in practice. Critics also note the book relies mostly on success stories read through the authors’ own lens.

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