Business

Blue Ocean Strategy: 6 key ideas

by W. Chan Kim & Renée Mauborgne

The core ideas of Blue Ocean Strategy, each in under a minute, written in our own words. Want the full depth? Get the book.

1. IDEA 1 OF 6

   Red oceans versus blue oceans

   Crowded markets are red oceans where rivals fight over shrinking profit.

   Blue oceans are new market spaces where competition is irrelevant.

2. IDEA 2 OF 6

   Value innovation

   Create a leap in value for buyers while lowering costs, rather than trading one off against the other.

3. IDEA 3 OF 6

   The four actions

   Ask which factors to eliminate, reduce, raise and create compared with industry norms.

4. IDEA 4 OF 6

   Strategy canvas

   Plot how competitors invest across key factors.

   A new value curve shows where you can stand apart.

5. IDEA 5 OF 6

   Look at noncustomers

   Growth often lies with people who don't buy from the industry today.

   Ask what keeps them away.

6. IDEA 6 OF 6

   Fair process

   Engaging people in strategy and explaining decisions builds the commitment needed to execute.