Another great model. That doesn't take into account halo effect and bias in the data. Great for having a tool and framework for business model, but not an generalised model. Read Phil Rosenzweig book to get perspectives on the common mistakes from its data

كتاب مميز يستعرض طريقة الانتقال الى محيط ازرق خالي من المنافسة، ويسلط الضوء على طرق تحليل وتقييم جديدة .
جيد جدا لكل المهتمين بتطوير اعمالهم او مواجهة تحديات الابتكار والابداع في الاسواق.
يستعرض الكتاب العديد من التجارب كدراسة حالة.

How to Run your Business and Become the Competition

This is a very technical book to read cover to cover, which explains the 3 star rating.However the message is clear. If you run your business attempting to price your product or device below the competition or by adding "bells and whistles" to an existing product, you will continually be looking over your shoulder to fend off your competitors. The book includes several excellent examples of companies that used the existing product or service but found a way to market these to previously untapped markets creating a space in the marketplace and become the leader in that space.

В отличной бизнес-книге должно сочетаться две вещи: идея, которую можно быстро понять, и практические инструменты для её внедрения.

Бинго! «Стратегия голубого океана» Рене Моборна и Ким Чана оказалась именно той самой бизнес-книгой, за которую мне не жаль отданных денег.

«Единственный̆ способ победить конкуренцию — это перестать пытаться победить». Вот идея книги. То есть перестать бороться с акулами в конкурентном «алом» океане и ��ыплыть в новый свободный «голубой». В центре этого перемещения стоит инновация ценности – предложение потребителю, которое представляет для него новую ценность, а не улучшенную версию старой. Цирк дю Солей как симбиоз цирка и театра. Вина Yellow Tail как пример открытия сегмента вин для массового, а не только нишевого, потребителя.

Кроме примеров самих океанов, книга даёт принципы создания «голубых» океанов, инструменты оценки текущей конкуренции и её критериев, пересмотра границ рынка, а также посвящает несколько глав подходу к управления изменениями на практике. Это толковая маркетинговая книга, которая написана нормальным человеческим языком для владельцев бизнеса и топ-менеджеров, и действительно может помочь пересмотреть свои подходы и стратег��и.

Ну и самое прекрасное, что голубые океаны могут создаваться в любой индустрии, как старожилами рынка, так и новичками. Вопрос только в фокусе и желании.

Ну и напоследок совет. Я слушала книгу в аудио – это оказалось ошибкой. В ней настолько много полезных идей и инструментов, что хотелось достать ручку и сразу попробовать их на практике. Так что я рекомендую бумажный вариант, тем более что к нему есть смысл возвращаться.

#kyivbookworms #внеКЛАССноечтение #естьчтопочитать

It was super interesting!

Practical advice from one of the bosses at the INSEAD Strategy Institute. Sometimes it gets a little self-helpy in the sense that creates its own vocabulary and repeats them ad nauseaum until we can't take it anymore. The references, of course, are dated. But I like its insights.

Some reviewers accuse it of nitpicking evidences, but business is already a tricky area for scientific exactness: there is just too many variables, and this book doesn't (nor tries to) cover all of them. This is a book about strategy, not a failure-proof-execution-guide.

Good place to start when it comes to innovation, since it introduces a "curve of value", that can measure in what companies should innovate and truly generate value for the clients, avoiding small niches and creating a relative monopoly (or "blue ocean") for itself.

A decent but not groundbreaking explanation of how to beat your competition through value innovation: creating a leap of value for buyers while driving costs down. The book explains the theory and gives examples. There are many questions for you to ask yourself about your business. There are some helpful tables and graphs. The book is fairly dry, and not especially engaging. It's written for larger companies with mass-market products, so small businesses that provide services (like mine) need to put some effort into translating the advice to their situation.

According to the book, value innovation happens by 1) saving costs by eliminating and reducing factors and industry competes on, and 2) increasing buyer value by raising and creating elements the industry has never offered.

"Although some blue oceans are created well beyond existing industry boundaries, most are created from within red oceans by expanding existing industry boundaries … In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. It will always be important to to swim successfully in the red ocean by outcompeting rivals. Red oceans will always matter and will always be a fact of business life. … To seize new profit and growth opportunities, they also need to create blue oceans."

The authors say the book is based on over 15 years of research in over 30 industries, data going back over 100 years, and HBR and academic articles.

The book was recommended in Zag: The #1 Strategy of High-Performance Brands. As a result, I expected this book to be more insightful.

Notes
Analytical Tools and Frameworks
4 Actions Framework
• Eliminate: Which of the factors that the industry takes for granted should be eliminated?
• Reduce: Which factors should be reduced well below the industry's standard?
• Raise: Which factors should be raised well above the industry's standard?
• Create: Which factors should be created that the industry has never offered?

3 characteristics of a good strategy
• Focus
• Divergence: uniqueness; differentiation from industry average.
• Compelling tagline: deliver clear message; advertise an offer offering truthfully.

Reconstruct Market Boundaries
6 Paths Framework to breaking out of market boundaries
1. Look across alternative industries. Focus on key factors that lead buyers to trade across alternative industries (products and services with different functions and forms but same purpose. Give advantages of both alternatives. E.g., NetJets gives advantages of commercial airlines and private jet.

2. Look across the strategic groups within industries. Understand why consumers trade up or down among groups. E.g., Curves built on advantages of traditional health clubs and home exercise. Lexus offered quality of Mercedes at price of Lincoln.

3. Look across chain of buyers. Shift buyer group. E.g., Novo Nordisk focused on patients, not doctors. Bloomberg focused on traders and analysts, not IT managers.

4. Look across complementary products and service offerings. Define total solution buyers seek when they choose your product/service and think about what they need before, during, after they use your product. Identify pain points of your product and eliminate them through a complementary product. E.g., Barnes & Noble shifted from seller of books to seller of pleasure of reading and intellectual exploration, adding lounges and coffee bars. Dyson designed vacuum cleaners without cost and annoyance of changing bags.

5. Look across functional or emotional appeal to buyers. Functionally-oriented industries (those that compete on price and functionality with a rational appeal) can infuse commodity products with new life by adding a dose of emotion. E.g., Cemex shifted from selling bags of cement to selling a dream: adding a room to a house, where the family can laugh and be happy. Starbucks shifted from selling coffee to selling emotional atmosphere.

6. Look across time. Foresee how trends will change value to customers and change your business model, to take advantage. Study trends that have high probability of impacting your business, are irreversible, and have a clear trajectory. Predict what market will look like given the trend, then work backwards to identify changes to make today. E.g., Apple created iTunes to take advantage of trend towards mobile digital music. Cisco took advantage of growing demand for high-speed data.

Focus on the Big Picture, Not the Numbers
4 steps of visualizing strategy
1. Visual awakening. Compare your business with competitors by drawing your "as is" strategy canvas. See where your strategy needs to change.
2. Visual exploration. Go into the field to explore the 6 paths to creating blue oceans. Observe the distinctive advantages of alternative products and services. See which factors you should eliminate, create, change.
3. Visual strategy fair. Draw your "to be" strategy canvas based on insights from field observations. Get feedback on alternative strategy canvases from customers, competitors' customers, and non-customers. Use feedback to build the best "to be" future strategy.
4. Visual communication. Distribute your before-and-after strategic profiles on one page for easy comparison. Support only those projects and operational moves that allow your company to close the gap to actualise the new strategy.

Talk to and observe customers, non-customers, users.

Reach Beyond Existing Demand
Focus on non-customers and desegmentation before exploiting differences among existing customers. Seek to convert non-customers of the industry into new demand, rather than trying to capture greater share of existing industry customers. Seek key commonalities in what buyers value, rather than trying to embrace customer differences through finer customization and segmentation.

Non-customers tend to offer far more insight into how to unlock and grow a blue ocean than do relatively content existing customers.

Questions to ask about non-customers
1. Why do first-tier non-customers watch to jump ship and leave your industry? Focus on commonalities and the segment buyers.
2. Why do second-tier to your non-customers refuse to you? Focus on commonalities.
3. Why is your industry not targeting third-tier unexplored non-customers? What needs do they have that you could meet?

No tier of non-customers is inherently more valuable. Focus on the one that's the "biggest catchment" at the time. And see if there are commonalities across all three tiers.

Get the Strategic Sequence Right
Sequence of blue ocean strategy
1. Buyer utility: Is there exceptional buyer utility in your business idea?
2. Price: Is your price easily accessible to the mass of buyers?
3. Cost: Can you attain your cost target to profit at your strategic price?
4. Adoption: What are the adoption hurdles in actualizing your business idea? Are you addressing them up front?

6 utility levers: customer productivity, simplicity, convenience, risk, fun and image, environmental friendliness.

Eliminate blocks to utility across the buyer experience cycle (purchase, delivery, use, supplements, maintenance, disposal).

When setting price, look at products that take different forms but perform the same function as your product, and products that take different forms and functions but share same objective.

You need price-minus costing to arrive at a cost structure that's profitable and hard for followers to match.

3 levers to reduce cost
• Streamline operations, reduce costs from a manufacturing to distribution.
• Partner with companies to gain capabilities and economies of scale.
• Change pricing model of industry.

A Sketch of the Historical Pattern of Blue Ocean Creation
Creating blue oceans doesn't require tech innovation, even in tech industries. Key is value innovation (innovation linked to buyer's value).

Creation of blue oceans contributes to strong, profitable growth and strong, positive effect on brand.

Computer industry has experienced several blue oceans created by simplified computers and making them cheaper.

Đại dương xanh - Quyển sách mà bất cứ người quản lý hay lãnh đạo nào cũng phải đọc. Thế giới này rộng lớn thế cơ mà sao phải giành giật cạnh tranh sứt đầu mẻ trán trong đại dương đỏ. Thấy mình quá bất hạnh và khó khăn để tìm từng mẩu nhỏ thị phần? thay vì đó sao ko bước chân vào đại dương xanh. chọn cho mình 1 lối đi riêng. muốn làm được vậy ko có cách gì khác ngoài việc phải có tư duy đúng. Hành động đúng thì trước nhất cần suy nghĩ đúng. Đổi mới giá trị chính là nền tảng của chiến lược đại dương xanh. Đại dương xanh được hình thành nhờ việc giảm chi phí đồng thời tăng giá trị cho người mua. Vấn đề đổi mới giá trị dựa trên quan điểm cho rằng những ranh giới thị trường và cấu trúc ngành không được định sẵn mà người tham gia ngành có thể xác lập lại thông qua hành vi và niềm tin của họ. Chọn 1 lối đi riêng để đi- nơi mình có thể thỏa sức tung cánh. Và như cuộc leo núi của người tiên phong của người dẫn đầu. Ý vị của người dẫn đầu là mình đã vượt xa đối thủ, nhàn tản ngắm cây, mây bay qua bầu trời. Nếu muốn bước chân vào Đại dương xanh không có cách nào khác các doanh nhân hãy tư duy đúng, sáng tạo và ko ngừng đổi mới. Cảm ơn tác giả vì quyển sách kinh điển về chiến lược. Không ai bảo leo núi sẽ dễ nhưng hãy chọn con đường khó để đi. Be strict to yourself first.
16.3.2020
P/S: cảm ơn chồng đã tặng sách này chắc 10 năm rồi chưa đọc. nhưng em cũng bảo bạn ý. cái gì cũng có thời điểm. bây giờ mới là đúng thời điểm nên mới thấy trân quý đến vậy. Thank you

The authors provide case studies on how some companies left their "bloody-red" oceans of competition for completely open blue oceans where they were unique.

Some are well-known business stories, such as Southwest Airlines becoming a low-cost provider. However, the book provides details into Southwest's underlying business strategies that may not be well known. Other case studies gave new insight into various companies and their product strategics. One interesting story, for example, was [yellow tail], the Australian wine company that stepped outside of the traditional wine marketing with a simpler offering targeting casual drinkers.

The book covers the "strategic canvas" for analyzing competitors and planning a new market space. It then outlines six different principals for creating your own "blue ocean" strategy:

1) Reconstruct market boundaries
2) Focus on the big picture, not on the numbers
3) Reach beyond existing demand
4) Get the strategic sequence right
5) Overcome key organizational hurdles to make blue ocean strategy happen in action
6) Build execution into strategy from the start to build organizational trust and commitment

Making competitors irrelevant by focus on distinct consumer value instead of benchmark versus rivals is the basic concept of this classic business book
Only way to beat the competition is to stop trying to beat the competition

A solid book to think differently about the landed wisdom that you get what you pay for. The book argues that true customer value innovation is only achieved when costs are lower and quality is higher simultaneously. Some examples haven’t aged that well (including a stab at Microsofts lack of innovative capabilities), but an interesting framework nonetheless.
More thoughts to follow

Learned some things

[I initially stumbled upon this book in 2017, but after a first few chapters i have put it on hold before finishing it entirely]
The main narrative of the book itself was okay. It covers the aspect of differentiation and how to think and act different through value creation and adding value to your business in order to "get ahead" of you competition. Simply put:
Red Ocean>> everyone else
Blue Ocean>> the untapped market and newfound potential, added value, different

It provides a genuine insight on how we can navigate through oversaturated market of products by adding value or differentiation in terms of achieving its potential, and thus gave us competitive advantage therefore. However, the rest of this book is mostly repetitive, and by keeping it simple and stupid, it came off just stupid. This is basically Business Studied 101 and once you've learned the main narrative/message you can just get down to business. Talk with friends/connections, learn some skills, or do some research would make you get by quicker. Internalize this book just for the sake of it. This is a principle in which street smart people can even get by, with or without being exposed to this particular book.