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Saturday, February 5, 2011

Blue Ocean Strategy by W. Chan Kim & Renee Mauborgne.

"Compelling read for business executives"  

Genre: Business & Management

Our Say: An eye-opener 4/5

Language used: Understandable with some technical jargon

Application in business world: Great reviews from executives 

Review -

W.Chan Kim & Renée Mauborgne base this book on the idea of competing healthily in today’s world of cut-throat competition, as against sabotaging each other.

He believes organizations shouldn’t attempt to compete with each other, rather try to nullify them. As he quotes “the only way to beat competition is to stop trying to stop beating them” – clichéd as it might sound, it makes sense when thought over.

When an organization tries to outperform its competition, its focus shifts away from its more important target segment to the frivolous rival companies. It becomes a ‘someone else’ instead of being ‘itself’.

The smarter way out is quit playing within the industry’s conventionally defined boundaries but to define untapped markets. This creates new demand & promotes highly lucrative growth. The author believes that defeating the opponent is essentially a war element- where the battle is to conquer a piece of land which is limited & constant; unlike the dynamic scenario of business.

A couple of chapters through, the book gets a bit technical and lays out an analytical framework for the organization to work in.

It’s almost like a DIY to help formulate and execute the blue ocean strategy which revolves around the 6 principles of the same. Another thing to be noted is that the book is loaded with examples and unlike an “in search of excellence” or a “built to last”, it quotes examples of a tad less successful companies too.
All in all, it’s a pretty helpful read that changes the mindset of the managers at companies to think beyond competition. Work on your core competence & build it to have successful growth.  

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