Competition is an inevitable component of business strategy. Traditionally companies have engaged in a neck-to-neck race in a bid to attain profitable and sustainable growth. They strive for differentiation, battle to dominate market share and fight to retain competitive advantage.

While this has been the norm, in today’s overcrowded markets, such head-on competition results in a “red ocean” where rivals fight for an already disappearing profit pool. Renée Mauborgne and W. Chan Kim in their book “Blue Ocean Strategy” challenge the traditional concepts of competitive market strategy. The core message the authors put forth is that competing within these red oceans is not likely to bring about a profitable growth for companies.

Authors Mauborgne and Kim have put forth their argument for creation of blue oceans based on extensive studies over a period of hundred years where 150 strategies were analyzed across thirty industries.

Instead, companies in the future can only thrive by creating what the authors call “blue oceans” which refer to market spaces that are uncontested. Also termed value innovation, the blue oceans can help the companies take powerful leaps ahead of competitors, by creating new demand and rendering so-called rivals obsolete.

Authors Mauborgne and Kim have put forth their argument for creation of blue oceans based on extensive studies over a period of hundred years where 150 strategies were analyzed across thirty industries.

In this game-changer of a book, Kim and Mauborgne highlight an analytical framework that has been proven and the required tools to create and capture blue oceans. Blue Ocean Strategy describes a systematic approach to render competition irrelevant with the help of six principles.

These six principles are evidenced from a study of extensive strategic moves that have been made by various industries successfully. With the use of these six principles, every company can successfully reconstruct boundaries of markets, focus on the macro picture, extend beyond the existing demand, perfect the strategic sequence, overcome internal hurdles, and embed execution within strategy.

in conclusion, competition is rendered irrelevant because the rules of the competition game are not yet set. The blue ocean strategy brings the apt analogy that describes deeper and wider potential that exists in the market scenario, much like the vast expanse of an ocean that has hidden depths yet unexplored.

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