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As an Entrepreneur Rethinketh

The only way to beat the competition is to stop trying to beat the competition.

Instead of competing in crowded markets, companies should focus on exploring Blue Oceans – large, untapped markets, free of competition. One can discover such Blue Oceans through Value Innovation – the process of creating value for both the buyer and the company.

Value Innovation essentially means bringing a better product (faster, easier to use) for a smaller price (no unnecessary features, less costs). This contradicts conventional wisdom that quality and low prices are mutually exclusive.

  • Most corporate strategies grew from military models featuring direct confrontations.
  • When businesses directly compete, the battlefield becomes over-crowded so all participants suffer from reduced market share, growth and profits.
  • The blue ocean strategy builds new businesses where none existed, giving innovative entries clear sailing.
  • These businesses, such as cell phones and biotechnology, barely existed 30 years ago .
  • Blue ocean industries are more profitable than fields with head-to-head competitors.
  • Offer your customers a blue ocean “value innovation,” that is, tangible product advancements accompanied by demonstrable savings.
  • Wear a life jacket: the six steps of blue ocean implementation each carry a risk.
  • The six steps are:
  • Use a “strategy canvas” to chart the competition and exploit their shortcomings.
  • Developing a blue ocean strategy requires all hands on deck.
    1. “Reconstruct market boundaries;”
    2. “Focus on the big picture;”
    3. “Reach beyond existing demand;”
    4. “Get the strategic sequence right;”
    5. “Overcome key organizational hurdles” and
    6. “Build execution into strategy.”

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