Blue Ocean Strategy Summary

Click here to buy the book.

In Blue Ocean Strategy, W. Chan Kim challenges conventional business models, advocating for creating uncontested market spaces rather than battling in existing, saturated ones. 

It presents a systematic approach to rendering competition irrelevant by unlocking new demand and achieving differentiation and low cost.

Identify new market spaces. Stop focusing on beating competitors in existing markets. Instead, find entirely new areas to offer your products or services.

Expand industry boundaries. Don't be restricted by what your industry typically offers. Think about what customers truly need and mix elements from different industries.

Sketch your strategy canvas. Understand how you and your competitors measure up. Focus on what customers value. Don't just offer more for less; change the game entirely.

Use the four actions framework. Eliminate what's not needed, reduce what's too much, raise what's missing, and create what's new. Break the mold for real innovation.

Explore alternative industries. Identify what makes customers switch. Capitalize on these decisive factors and offer the best of both worlds in a new space.

Examine strategic groups. Understand why customers trade up or down between groups. Build on key advantages to attract a wider audience beyond existing boundaries.

Draw your "as is" strategy. Compare your business with rivals to identify areas needing change. Visualizing helps see strategic gaps and potential innovation opportunities.

Explore the six paths in the field. Observe how people use services or products. Get real customer feedback to build a compelling "to be" future strategy.

Target noncustomers first. Instead of fighting for existing customers, find out why others don't use your product. Focus on their common needs.

Explore the three tiers of noncustomers. Find the biggest group—those about to leave, those who refuse, or those who never considered you. Unlock a huge untapped market.

Confirm exceptional utility exists. Ensure compelling reasons drive mass buyer appeal. Without strong buyer utility, pause and rethink your idea.

Identify and set a strategic price. Attract mass buyers with compelling value for the money. Volume matters; don't focus solely on high-end, price-insensitive buyers.

See the harsh reality firsthand. Don't rely on numbers. Face problems directly to inspire fast change. This will make people embrace the need to change faster.

Find hot spots, not just resources. Prioritize activities with high potential and cut those that drain resources without good results to execute the strategy. Focus and trade resources.

Engage people early, before setting strategy. Ask for input and allow them to challenge each other. This will build trust and increase buy-in.

Explain why decisions are made. Help people understand the plan and how it affects them. Transparency promotes voluntary cooperation from all employees.

Expect imitation to happen. Track your strategy canvas and competitors' moves. Innovate again as value curves converge to open new blue waters.

Dominate your blue ocean. Focus on expanding and improving while it's still blue. Operational improvements, not competition, should be your guiding star.

If you enjoyed this summary and want to read the entire book: Click here to get it.