Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant by W. Chan Kim and Renee Mauborgne
This review will focus on pointing out those things that are consistent with Theory of Constraints (TOC) and my opinions from those things that are not. The authors have done a nice job of explaining the problems with current strategy and market development techniques. Specifically, I agree that:
- “… with supply exceeding demand in more industries, competing for a share of contracting markets while necessary, will not be sufficient to sustain high performance.” pg 5
- “The result has been accelerated commoditization of products and services, increasing prices wars, and shrinking profit margins.” pg 8
- “In overcrowded industries, differentiating brands becomes harder in both economic upturns and downturns.” pg 8
- “The trend toward globalization has compounds the situation.” pg 8
No question. There is a problem. We can’t continue to do things in the same way and expect different results. However, I believe that a couple key assumptions have lead the authors astray.
Here is what I don’t agree with:
- “To seize new profit and growth opportunities, they need to create blue oceans.” pg 5
