Blue Ocean Strategy

From Theory to Practice

W. Chan Kim Renée Mauborgne

or twenty-five has years, competition been at theheartofcorporate one without Today, can hardly speakot strategy involving strategy. thelanguage competition: of competitive strategy, competitive and the benchmarking, building competitive advantages, beating Suchfocuson thecompetition traces backto corporate competition. strategy's in The is roots military strategy. very languageofcorporate strategy deeply in imbued withmilitary referenceschief executive "officers" "headquarters," on the"front and fighting a defined over battlefield.1 lines," "troops" Industrial to (IO) organization economics gaveformal expression the of to success. economics IO suggests prominent importance competition firms' structure conduct performance.2 market and a causalflowfrom market to Here, and demandconditions, and buyers' structure, bysupply given shapessellers' in determines performance.3 academics thisthe end The call conduct, which, turn, structuralist or environmental determinism. market structure as view, Taking muchas military takeslandas given, sucha viewdrives given, strategy companiesto try carveout a defensible to in the position against competition theexistin themselves themarketplace, of ingmarket space.To sustain practitioners focus building on overthecompetition, strategy advantages usually assessing by whatcompetitors and striving do itbetter. do to a share Here,grabbing bigger ofthemarket also seen as a zero-sum is in whichone company's game gainis achieved another at loss.Hence,competition, supply the sideofthe company's remains defining the variable strategy thefocuson dividing of with equation, up existing industry space. ^^m
Adapted from BLUE OCEAN STRATEGY: How to Create Uncontested Market Space and Make the Competition Irrelevant by W. Chan Kim and Renée Mauborgne. Copyright © 2005 by Harvard Business School Publishing Corporation. All Rights Reserved.