If your business or career growth has plateaued at some point, it’s time to read The Blue Ocean Strategy by Chan Kim and Renée Mauborgne, first published in 2004. The authors are economists and professors of strategy at one of the top business schools in Europe, INSEAD, based in France. They propose an analogy of the blue ocean, where the ocean is a newly created market in which businesses could potentially operate. It’s blue, as this is free from competition yet. In the business field, where competition already exists, rivals like sharks compete with each other till the ocean turns red from blood.
The main idea is that instead of letting competition drive the company’s core strategy and focusing on rivals, it is better to extend or even reconstruct the industry’s existing boundaries and focus on customers. The book offers a comprehensive business overview, serving as an ideal starting point for those new to the field. I won’t go into deep details, as it’s full of practical guidance, figures, step-by-step instructions, frameworks, and tools. It makes no sense to give you a brief overview of innovative terminology because you won’t get a deep understanding of what is that about and where to use it. The book is divided into 3 parts.
The first part convincingly argues for venturing beyond market boundaries. Supported with real-life examples of famous brands you might know but probably didn’t know their background. Then, you will learn what business strategy is, its characteristics, and analytical tools that will help you draw your own strategy curve and avoid a common mistake that most companies make. Afterwards, you jump into more details about reconstructing the industry and creating new demand by analysing competitors and asking the right key questions.
The book’s second part contains information on how to transform noncustomers who are beyond your industry’s demand into potential customers. The authors also explain what products or services should be offered and whether they meet customer needs through the buyer experience cycle. Concluding with discussing price target strategy.
The third part concerns execution and management and how to implement that strategy among employees. It might be especially useful if you run your own company or take a high-management position.
The Blue Ocean Strategy has some limitations in terms of experience. Even though it can give you a big picture of the business world and how companies operate, the success of that strategy highly depends on your personal and professional experience, your unique ability to see opportunities, and your critical thinking. Another limitation is the risk of creating a fresh blue ocean for which people are not ready, and your idea will fail. Remember Google Glass, which nobody needed just a couple of years ago, and 2023 was booming with Ray-Ban x Meta, which can record video.
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Despite being introduced in 2004, this book is still relevant, especially in overcrowded markets with their commoditised products. The last edition comes with some fresh extra chapters, and you might hear references to this strategy on some money – podcasts from successful entrepreneurs.
To sum up, this book is a great approach for those who are working for the company or just starting their careers, or running their own thing. The knowledge gained from The Blue Ocean Strategy, blended with your personal experience, could help you bring new ideas to your manager, which could boost your career. Or, if you run your own thing, it can help to re-evaluate the field where you operate, realise what you are doing wrong, and learn how to go beyond the limited market share.
Have you read this book? If so, did it change your view on business? Share your thoughts in the comments.
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