The “Blue Ocean” strategy is a six-step process. The authors break down the following six steps.
- Reconstruct Market Boundaries
- Focus on the Big Picture, Not the Numbers
- Reach Beyond Existing Demand
- Get the Strategic Sequence Right
- Overcome Key Organizational Hurdles
- Build Execution and Strategy
Each chapter breaks down ways of analyzing where a company’s strategy falls within each step. In the extended edition, the last section describes how to avoid the “Red Ocean.” A proper “Blue Ocean” strategy transcends traditional competition and the idea that to innovate; there must be a technological advance.
The third “Red Ocean Trap” describes “bleeding edge technologies.” It is interesting how the authors refer to new technologies in that manner instead of cutting edge technologies. It is almost as though they have a disdain for the phrase. The reason for the words might be perhaps because he is fighting the perception that technological innovation is the only innovation when, in fact, without value innovation, technological innovation would not be made useful for societal change.
“For technology to be adopted extensively, someone has to channel it from the inventor to the market. (Kinni)” According to Kinni, technology needs to be value innovated for the product or service to have an impact on markets.
A similar view on the same subject is that a product needs to be in the minds of customers. “A new product can fail on the market because it does not create real value and therefore cannot find customers. (Hensberger)”
Technological advances can be unknown if just presented on their own. It is when they offer some sort of value to the consumer and hence profit to a business, then new technology will be known to others. Leadership is an element that is also required. Without the proper strategy, even the best innovation will not become valuable.
Another point the authors emphasized is that innovation does not necessarily mean that a milestone development occurred. It is an increase in value that leads to a more profitable business.
I thoroughly enjoyed the “Blue Ocean Strategy.” I have to admit, as I took in it all in, I had to review the various steps and recall the analytical tools used at each stage. Looking at the author’s website, there are additional online courses available at low cost. In addition, there are publications which discuss specific organizations and their use of the “Blue Ocean Strategy.” I encourage others to look them up!
Kim, C. and Mauborgne, R. (2015), “Blue Ocean Strategy,” Harvard University Business Press, ISBN 978-1-62527-449-6
Kinni, T (2016), Why Innovation isn’t Enough, https://sloanreview.mit.edu/article/why-innovation-isnt-enough/, MIT Sloan Management Review, Retrieved on 2/27/20
Hensberger, A. (2016), 4 Reasons Why Innovations Fail, https://www.lead-innovation.com/english-blog/why-innovations-fail, LEAD Innovation Blog, Retrieved on 2/27/20
https://www.blueoceanstrategy.com/teaching-materials/, Retrieved on 2/27/2020
Master of Entrepreneurship Website for Mike Weimar 