in 111 Books in 2011

#5/111: Blue Ocean Strategy

What is it about?

There are red and blue oceans. Red oceans are highly competitive markets (e.g. commodities). In contrast blue oceans are markets with a low rate or non competition. The authors explain how to construct & execute a blue ocean strategy.

Key points?

There are several tools to construct and execute a blue ocean strategy. Some new ideas are targeting non-customers and tipping point leadership. The idea of targeting non-customers is easy. Before the Ford T-Model cars were expensive, so many people don’t bought them. Ford invented the T-Model which was really cheap, therefore non-customers converted to customers for this business.

The tipping point leadership is based on the popular tipping point phenomena. To change a company fast try to influence the key players (important and well respected people). These key players will allow you to influence a lot of people with a small effort.

Conclusion

You will notice that this book is written by academics. You can’t read it so fluently because there is some unnecessary complexity. However it got some nice examples of companies building blue oceans and shows how you can construct your own blue ocean strategy.

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