The Blue Ocean Strategy - A Review and Summary

This book truly gives a powerful lesson about creating a company that's in a class of its own. Imagine selling your products or services in a new untapped market with huge demand and an opportunity for a very profitable growth. Every business would salivate at the mere thought of it. The subject is heavy. You have to really give a deep thought into each step to bring your organization closer to the deep blue ocean. If it is easy, everyone would have done it already right!

To start with, you can use this Four Actions Framework.


One of the case study shared in the book is about Cirque De Soleil that repositions its offering in a new market that is not quite circus and not quite theatre. Alas, a new market is created. It didn't have to go head on with competitors and compete to win the shrinking market. Using the Four Action Framework, look at the strategy below.

Eliminate
- Star performers
- Animal shows
- Aisle concession sales
- Multiple show arenas

Reduce
- Fun and humor
- Thrill and danger

Raise
- Unique venue

Create
- Theme
- Refined environment
- Multiple productions
- Artistic music and dance

The book also use Southwest Airlines as it example but in our local context, I can't help but think of AirAsia.


Instead of competing with other airline companies, Southwest Airlines targets the land transport users with its offering. They stripped off all the fancy trimmings and offered a no-nonsense Point A to Point B speedier travel at a price of traveling by car. For other airlines that compete on best business travel, best first class, best meal on flight and so on, there's no way for them to take all that fancy trimmings away and started competing with Southwest.

To find your own blue ocean and reconstruct your own market boundaries, you can use the 6 Paths laid out in the book. In drawing out your strategy canvas, you have to look beyond the numbers and stare at the big picture. Charts and statistics can be manipulated to present a rosy picture. Get all the top executives to survey their own market. Do not outsource this task as many are doing right now because a famous artist did not draw a masterpiece based on another person's description. A very apt way of describing it.

I started my book summary from one interesting point to another and without realizing it, I can make a book from my own summary after the slides grow to 55 :) Find my full book summary here. You can also see a preview of the book here.