Blue Ocean Strategy

Hello my fellow reader, is been a while since i last post. Currently lack of idea on what i should write. This idea came around when i was thinking on how to expand my business( have not launch yet) recently. Every time when you about to set a new business there are always million of strategy or way to do your business. One of the best and now most people are talking are the Blue Ocean Strategy.

So what is this concept really about ? The true is, the title of blue ocean strategy is actually a book written by W. Chan Kim and Renée Mauborgne. So what is this book really about ?

Here is a brief summary about the book,

The book is divided into three parts:

The first part presents key concepts of blue ocean strategy, including Value Innovation, the simultaneous pursuit of differentiation and low cost, and key analytical tools and frameworks such as the strategy canvas, the four actions framework and the eliminate-reduce-raise-create grid.

The second part describes the four principles of blue ocean strategy formulation: how to create uncontested market space by reconstructing market boundaries, focusing on the big picture, reaching beyond existing demand and getting the strategic sequence right. These four formulation principles address how an organization can create blue oceans by looking across the six conventional boundaries of competition (Six Paths Framework), reduce their planning risk by following the four steps of visualizing strategy, create new demand by unlocking the three tiers of noncustomers and launch a commercially-viable blue ocean idea by aligning unprecedented utility of an offering with strategic pricing and target costing and by overcoming adoption hurdles. The book uses many examples across industries to demonstrate how to break out of traditional competitive (structuralist) strategic thinking and to grow demand and profits for the company and the industry by using blue ocean (reconstructionist) strategic thinking.

The third and final part describes the two key implementation principles of blue ocean strategy including tipping point leadership and fair process. These implementation principles are essential for leaders to overcome the four key organizational hurdles that can prevent even the best strategies from being executed. The four key hurdles comprise the cognitive, resource, motivational and political hurdles that prevent people involved in strategy execution from understanding the need to break from status quo, finding the resources to implement the new strategic shift, keeping your people committed to implementing the new strategy, and from overcoming the powerful vested interests that may block the change.

So is really a interesting theory indeed. I haven't purchase the book yet but look forward of having one. If anyone have it, hope can lend it to me.

Good Day. :)