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What is it about “Blue Ocean Strategy” that is so important and radical?

Jan 18th 2005
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Today I read an article from “Monday Morning” - the self established Danish Think Tank of News.

“Why true winners doesn’t compete”

The story is about this article and this book. The tone in the article is like those articles describing the next new BIG thing.

The book in its self is an interesting piece - it’s about Oceans - Red and blue ones.

In the red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. Here companies try to outperform their rivals to grab a greater share of existing demand. As the market space gets more and more crowded, prospects for profits and growth are reduced. Products become commodities, and cutthroat competition turns the red ocean bloody.

Blue oceans, in contrast, are defined by untapped market space, demand creation, and the opportunity for highly profitable growth. While blue oceans are occasionally created well beyond existing industry boundaries, most are created by expanding existing industry boundaries. In blue oceans, competition is irrelevant as the rules of the game are waiting to be set.

What disturbs me is 2 things - first, the so called Think Tank is trying to establish itself as a Knowledgehub - for me thats “okay”, they play an important role in socity in general but it leads to number 2 - It’s common sense.

Take a look at Amazon, take a look at Google, take a look at Firefox. Those of us born on the wave of the so-called bubble can see through that - I hope :-).

It’s a fact of life creating new economy companies - isn’t it?

So what’s new?




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