Join getAbstract to access the summary!

Blue Ocean Strategy

Join getAbstract to access the summary!

Blue Ocean Strategy

Create Markets and Leave the Competition Behind

WOBI,

5 min read
5 take-aways
Audio & text

What's inside?

If you are battle weary from vying for market share, consider a fresh approach: Create a new market.


Editorial Rating

8

Qualities

  • Innovative
  • Applicable

Recommendation

When INSEAD professors Renée Mauborgne and W. Chan Kim released their book, Blue Ocean Strategy, in 2005, their treatise revolutionized the field of business strategy. While strategy fads tend to drift in and out of fashion, more than a decade after its first publication, Mauborgne and Kim’s pioneering research remains highly relevant. In this short vignette, Mauborgne recaps an important element of that original thesis: how market-creating strategy differs from market-competing strategy. getAbstract recommends her astute analysis to business leaders who are battle weary from vying for a thin slice of market share and who wish to pursue a fresh approach.

Summary

Companies approach market strategy in one of two ways. Most business and governments pursue a market-competing “red ocean strategy,” which focuses on increasing market share in established markets where competition is intense, investment is difficult to procure and margins are slim. Market-creating companies, on the other hand, adopt a “blue ocean strategy,” whereby, regardless of what is happening in the broader industry, they develop a “new space” that allows business to flourish.

Market-creating companies allow the established industry structure to dictate their strategies...

About the Speaker

Renée Mauborgne is co-director of the INSEAD Blue Ocean Strategy Institute. She co-wrote Blue Ocean Strategy.


Comment on this summary