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The key points of 'Blue Ocean Strategy, Expanded Edition: How to Create Uncontested Market Space and Make the Competition Irrelevant' by W. Chan Kim

Blue Ocean Strategy, Expanded Edition by W. Chan Kim is a groundbreaking book that introduces the concept of creating uncontested market space and making the competition irrelevant. This strategy focuses on innovation and value creation to open up new opportunities for businesses. In this article, we will explore the key points of the Blue Ocean Strategy.

Key Takeaways

  • Blue Ocean Strategy involves creating new market space rather than competing in existing markets.

  • The benefits of Blue Ocean Strategy include higher profitability, reduced competition, and increased customer loyalty.

  • Successful implementation of Blue Ocean Strategy can be seen in companies like Cirque du Soleil and Southwest Airlines.

  • Focus on innovation and value creation is essential for the success of Blue Ocean Strategy.

  • Blue Ocean Strategy challenges traditional market boundaries and encourages businesses to think outside the box.

Understanding the Blue Ocean Strategy

Definition and Concept

The Blue Ocean Strategy is a business theory that suggests companies can succeed by creating new, uncontested market spaces, rather than competing head-to-head with other firms in an existing industry. This approach focuses on generating value innovation that makes the competition irrelevant.

By venturing into blue oceans, businesses can tap into new demand and have the opportunity for highly profitable growth. The strategy involves both cost savings and differentiation, allowing companies to offer a leap in value for both the company and its customers.

  • Identify non-customers and understand their needs

  • Reconstruct market boundaries

  • Focus on the big picture, not the numbers

  • Reach beyond existing demand

  • Ensure the sequence of creating a blue ocean is followed

Benefits of Blue Ocean Strategy

The Blue Ocean Strategy offers a multitude of benefits for organizations seeking growth and sustainability. Creating new market spaces allows businesses to step away from the fiercely competitive red oceans and explore untapped opportunities.

  • Reduction in competition: By venturing into blue oceans, companies face less competition, which can lead to higher profits and growth.

  • Cost innovation: The strategy encourages cost innovation, allowing businesses to offer unique value propositions at a lower cost structure.

  • Brand differentiation: Companies can establish a unique brand identity, making their offerings stand out in the marketplace.

Adopting this approach not only positions a company for success but also inspires a continuous cycle of innovation and renewal. As businesses implement the Blue Ocean Strategy, they often find themselves becoming industry leaders, shaping the market and defining standards for others to follow.

Examples of Successful Implementation

The Blue Ocean Strategy has been applied by various companies to break away from the competition and venture into new market spaces. Cirque du Soleil is a prime example, as it created a new genre of entertainment by combining the best elements of circus and theater, thus avoiding direct competition with either industry.

  • Apple Inc. revolutionized the mobile phone market with the introduction of the iPhone, which combined a phone, an iPod, and an internet communicator into one device.

  • Yellow Tail reshaped the wine industry by making wine easy to select and enjoy, targeting a broader range of customers.

These examples illustrate that the principles of Blue Ocean Strategy are not confined to a single industry but can be adapted to various contexts for transformative success. The strategy emphasizes the importance of creating value innovation and not just beating the competition, but making the competition irrelevant.


In conclusion, 'Blue Ocean Strategy, Expanded Edition' by W. Chan Kim provides valuable insights on how businesses can create uncontested market space and outperform the competition. The book emphasizes the importance of innovation, value creation, and strategic thinking in order to succeed in today's competitive business environment. By implementing the principles outlined in the book, companies can differentiate themselves and thrive in blue oceans of opportunity. This expanded edition serves as a comprehensive guide for organizations looking to make a significant impact in the market and stay ahead of the competition.

Frequently Asked Questions

What is the Blue Ocean Strategy?

The Blue Ocean Strategy is a business theory that focuses on creating new market spaces with uncontested competition, making competitors irrelevant.

How is the Blue Ocean Strategy defined and what is its concept?

The Blue Ocean Strategy is defined as the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand.

What are the benefits of implementing the Blue Ocean Strategy?

The benefits include higher profitability, sustainable growth, reduced competition, and the opportunity to create new market segments.

Can you provide examples of successful implementation of the Blue Ocean Strategy?

Examples include Cirque du Soleil, Nintendo Wii, and Yellow Tail wine, which all created uncontested market spaces and redefined industry boundaries.

How does the Blue Ocean Strategy help in making the competition irrelevant?

By focusing on creating new market space and value innovation, the Blue Ocean Strategy shifts the focus from competing in existing markets to making the competition irrelevant.

Is the Blue Ocean Strategy applicable to all industries and businesses?

While the Blue Ocean Strategy principles can be applied to various industries, its effectiveness may vary based on the specific market dynamics and competitive landscape of each industry.

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