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On Blue Oceans December 28, 2007

Posted by Timothy Li in Books, MBET, PMBA.
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The book Blue Ocean Strategy proposes a new direction for strategic positioning, built on top of Porter’s differentiation strategy.

The book revolves around the goal to break out of red oceans, where various competitors benchmark against each other and modify product offerings accordingly. Instead, the author urges businesses to seek out blue oceans, or “uncontested waters where little competition exists”. This themes resonates to the Christensen’s Disruptive Innovation theory, both theories focus on non-consumers instead of acquiring existing consumers from direct competitors.

In order to identify potential blue oceans, the author proposed the use of a Strategic Canvas to graphically represent the current competitive landscape, as well as using an [ Eliminate | Reduce | Raise | Create ] grid to articulate the proposed strategy.

It’s a delightful read, thanks to Albert Lai and Nancy Vanden Bosch for recommending the book.