blue ocean strategy
TLFeBOOK
Blue Ocean Strategy
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Blue Ocean
Strategy
How to Create Uncontested Market Space and
Make the Competition Irrelevant
W. Chan Kim
Renée Mauborgne
H A R VA R D B U S I N E S S S C H O O L P R E S S
BOSTON, MASSACHUSETTS
Copyright 2005 Harvard Business School Publishing Corporation
All rights reserved
Printed in the United States of America
09 08 07 06 05
5 4 3 2 1
No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the prior permission of the publisher.
Requests for permission should be directed to permissions@hbsp.harvard.edu, or mailed to Permissions, Harvard Business School Publishing, 60 Harvard Way, Boston,
Massachusetts 02163.
Library of Congress Cataloging-in-Publication Data
Kim, W. Chan.
Blue ocean strategy: how to create uncontested market space and make the competition irrelevant / W. Chan Kim, Renée Mauborgne.
p. cm.
Includes bibliographical references and index.
ISBN 1-59139-619-0 (hardcover: alk. paper)
1. New products. 2. Market segmentation. I. Mauborgne, Renée. II. Title.
HF5415.153.K53 2005
658.8⍮02—dc22
2004020857
The paper used in this publication meets the requirements of the American National
Standard for Permanence of Paper for Publications and Documents in Libraries and
Archives Z39.48–1992
To friendship and to our families, who make our worlds more meaningful
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)
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)
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)
Contents
Preface
ix
Acknowledgments
xiii
Part One: Blue Ocean Strategy
1
Creating Blue Oceans
2
Analytical Tools and Frameworks
3
23
Part Two: Formulating Blue Ocean Strategy
3
Reconstruct Market Boundaries
47
4
Focus on the Big Picture, Not the Numbers
81
5
Reach Beyond Existing Demand
101
6
Get the Strategic Sequence Right
117
Contents
Blue Ocean Strategy
(
)
(
)
(
)
(
)
(
Blue Ocean
Strategy
How to Create Uncontested Market Space and
Make the Competition Irrelevant
W. Chan Kim
Renée Mauborgne
H A R VA R D B U S I N E S S S C H O O L P R E S S
BOSTON, MASSACHUSETTS
Copyright 2005 Harvard Business School Publishing Corporation
All rights reserved
Printed in the United States of America
09 08 07 06 05
5 4 3 2 1
No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the prior permission of the publisher.
Requests for permission should be directed to permissions@hbsp.harvard.edu, or mailed to Permissions, Harvard Business School Publishing, 60 Harvard Way, Boston,
Massachusetts 02163.
Library of Congress Cataloging-in-Publication Data
Kim, W. Chan.
Blue ocean strategy: how to create uncontested market space and make the competition irrelevant / W. Chan Kim, Renée Mauborgne.
p. cm.
Includes bibliographical references and index.
ISBN 1-59139-619-0 (hardcover: alk. paper)
1. New products. 2. Market segmentation. I. Mauborgne, Renée. II. Title.
HF5415.153.K53 2005
658.8⍮02—dc22
2004020857
The paper used in this publication meets the requirements of the American National
Standard for Permanence of Paper for Publications and Documents in Libraries and
Archives Z39.48–1992
To friendship and to our families, who make our worlds more meaningful
(
)
(
)
(
)
(
)
Contents
Preface
ix
Acknowledgments
xiii
Part One: Blue Ocean Strategy
1
Creating Blue Oceans
2
Analytical Tools and Frameworks
3
23
Part Two: Formulating Blue Ocean Strategy
3
Reconstruct Market Boundaries
47
4
Focus on the Big Picture, Not the Numbers
81
5
Reach Beyond Existing Demand
101
6
Get the Strategic Sequence Right
117
Contents
Bibliography: United States Air Force. 2002. “JSF Program Whitepaper.” Accessed 21 November 2003. von Clausewitz, Carl. 1993. On War. Edited and translated by Michael Howard and Peter Paret von Hippel, Eric. 1988. The Sources of Innovation. New York: Oxford University Press. White, Harrison C. 1981. “Where Do Markets Come From?” American Journal of Sociology 87, 517–547. White, Lawrence J. 1971. The Automotive Industry after 1945. Cambridge, MA: Harvard University Press. White, R. E. 1986. “Generic Business Strategies, Organizational Context and Performance: An Empirical Investigation.” Strategic Management Journal 7, 217–231. Wilson, James Q., and George L. Kelling. 1982. “Broken Windows.” Atlantic Monthly, March, vol Zook, Chris. 2004. Beyond the Core: Expand Your Market Without Abandoning Your Roots. Boston: Harvard Business School Press.