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16 key learnings from W. Chan Kim and Renée Mauborgne's framework for making competition irrelevant through value innovation. Each takes about 40 seconds to read. Swipe, use the arrows, or your keyboard.
All 16 learnings · one per slide
W. Chan Kim and Renée Mauborgne, in bytes
16 key learnings on creating uncontested market space instead of fighting competitors.
Learning 1
The idea
Red oceans are crowded markets where firms fight over existing demand. Blue oceans are new market spaces.
Example
Rival airlines cutting prices against each other are in a red ocean.
Takeaway
Create demand, don't just compete for it.
Learning 2
The idea
Pursue differentiation and low cost at the same time by rethinking what customers value.
Example
Cirque du Soleil cut costly animal acts while adding artistic value.
Takeaway
Break the value-cost trade-off.
Learning 3
Example
NetJets created fractional jet ownership, between commercial flights and owning a jet.
Why it worked
It offered much of private jet convenience at a fraction of the cost.
Takeaway
Combine alternatives.
Learning 4
Example
[yellow tail] made wine simple and fun for non-wine drinkers, dropping complex jargon.
Why it worked
It attracted beer and cocktail drinkers who had found wine intimidating.
Takeaway
Simplify for new customers.
Learning 5
Example
Cirque du Soleil dropped expensive circus elements like animal acts and added theatre and artistry, creating a new market.
Result
It reached a new audience of adults and corporate clients paying theatre prices.
Takeaway
Combine elements from different industries.
Learning 6
The idea
Ask which factors to Eliminate, Reduce, Raise and Create compared with industry norms.
Example
[yellow tail] eliminated wine jargon, reduced complexity, raised ease of choice and created fun.
Try this
Apply the four actions to your product.
Learning 7
The idea
Plot how competitors invest across key factors, then design a different value curve.
Example
Comparing airlines on price, meals, lounges and speed.
Takeaway
Make your differences visible.
Learning 8
The idea
A good strategy has focus, diverges from competitors, and can be summed up in a compelling tagline.
Example
Southwest's 'the speed of a plane at the price of a car'.
Try this
Write your strategy as a tagline.
Learning 9
The idea
Look at alternative industries, buyer groups and complementary products for new ideas.
Example
Southwest competed with cars, not just other airlines.
Try this
Ask why customers choose alternatives to your industry.
Learning 10
The idea
Look across alternative industries, strategic groups, buyer groups, complementary offerings, functional or emotional appeal, and time.
Example
Looking at complementary products: what happens before and after customers use yours.
Takeaway
Six lenses for new space.
Learning 11
The idea
Focus on people who don't buy from your industry, and why.
Example
Wine drinkers vs people who avoided wine.
Takeaway
Non-customers hide the biggest opportunities.
Learning 12
The idea
Soon-to-be, refusing and unexplored non-customers each offer opportunities.
Example
People who use your industry reluctantly, those who refuse it, and those who've never considered it.
Takeaway
Study why they don't buy.
Learning 13
The idea
Check buyer utility, price, cost and adoption in that order.
Example
Pricing for mass reach first, then designing costs to fit.
Takeaway
A great idea needs a viable business model.
Learning 14
The idea
Engagement, explanation and clear expectations build trust in execution.
Example
Explaining why decisions were made, even when people disagree.
Takeaway
How decisions are made matters.
Learning 15
The idea
Tipping-point leadership tackles cognitive, resource, motivational and political hurdles.
Example
New York police reforms under Bill Bratton.
Takeaway
Focus resources on hot spots.
Learning 16
The idea
Eventually imitators arrive; monitor value curves and look for the next blue ocean.
Example
Imitators followed Cirque and NetJets.
Takeaway
Keep innovating.
All 16 learnings complete
Stop fighting in a red ocean. What could you eliminate, reduce, raise or create?
Summaries are written in my own words for learning. Read Blue Ocean Strategy by W. Chan Kim and Renée Mauborgne (2005) for the full stories. More Books in Bytes
