Blue Ocean Strategy Implementation by W. Chan Kim and RenÃ©e Mauborgne

Last updated: Sep 20, 2023

Summary of Blue Ocean Strategy Implementation by W. Chan Kim and RenÃ©e Mauborgne

The book "Blue Ocean Strategy Implementation" by W. Chan Kim and Renée Mauborgne is a comprehensive guide that focuses on the practical aspects of implementing the Blue Ocean Strategy framework. The authors build upon their previous work, "Blue Ocean Strategy," and provide a step-by-step approach to help organizations successfully execute their blue ocean strategies.

The book begins by emphasizing the importance of execution in turning blue ocean ideas into reality. The authors argue that while strategy formulation is crucial, it is the execution that ultimately determines success or failure. They introduce the concept of the "Four Actions Framework" as a tool to help organizations break away from industry boundaries and create new market spaces.

The authors then delve into the six principles of blue ocean strategy implementation. These principles include:

Engaging people throughout the organization: The authors stress the importance of involving employees at all levels in the strategy implementation process. They provide practical tips on how to engage and align people towards the blue ocean vision.
Building execution into strategy: Kim and Mauborgne argue that execution should not be an afterthought but an integral part of the strategy. They provide guidance on how to design execution-friendly strategies and overcome common execution pitfalls.
Aligning the organization: The authors emphasize the need for organizational alignment to ensure everyone is working towards the same goals. They discuss the importance of clear communication, incentives, and metrics to align the organization.
Building execution capabilities: Kim and Mauborgne highlight the significance of building the necessary capabilities to execute the blue ocean strategy. They provide insights on how to identify and develop the right capabilities, as well as how to leverage partnerships and alliances.
Creating a culture of trust and commitment: The authors argue that trust and commitment are essential for successful strategy implementation. They provide guidance on fostering a culture of trust, encouraging risk-taking, and addressing resistance to change.
Renewing the organization: Kim and Mauborgne stress the need for continuous renewal to sustain the blue ocean strategy. They discuss the importance of learning from both successes and failures, as well as adapting and evolving the strategy over time.

The book also includes numerous real-world examples and case studies to illustrate the principles and provide practical insights. The authors address common challenges and provide guidance on how to overcome them, making the book a valuable resource for organizations seeking to implement blue ocean strategies.

In conclusion, "Blue Ocean Strategy Implementation" is a comprehensive guide that offers practical advice and tools for successfully executing blue ocean strategies. It provides a step-by-step approach, supported by real-world examples, to help organizations navigate the challenges of implementation and create new market spaces.

1. Redefining industry boundaries

One of the key takeaways from Blue Ocean Strategy Implementation is the concept of redefining industry boundaries. The authors argue that instead of competing within existing industries, companies should focus on creating new market spaces where competition is irrelevant. By identifying and targeting untapped customer needs, companies can break away from the traditional industry boundaries and create their own blue ocean of uncontested market space.

This approach allows companies to differentiate themselves from competitors and create unique value propositions that attract new customers. By redefining industry boundaries, companies can escape the intense competition and price wars that often characterize red ocean markets, and instead focus on creating new demand and capturing untapped market opportunities.

2. Value innovation

Another important concept discussed in the book is value innovation. The authors argue that companies should not only focus on improving existing products or services, but also on creating new value for customers. Value innovation involves simultaneously pursuing differentiation and low cost, which is often seen as a trade-off in traditional competitive strategies.

By creating a leap in value for both buyers and the company itself, companies can break away from the competition and create a blue ocean of new market space. Value innovation allows companies to offer unique and compelling value propositions that attract new customers and create new demand.

3. The four actions framework

The four actions framework is a practical tool introduced in the book to help companies create a blue ocean strategy. The framework involves asking four key questions: Which factors that the industry takes for granted should be eliminated? Which factors should be reduced well below the industry's standard? Which factors should be raised well above the industry's standard? And which factors should be created that the industry has never offered?

By answering these questions, companies can identify the key factors that need to be changed in order to create a blue ocean strategy. The four actions framework provides a structured approach for companies to challenge industry assumptions and create new value propositions that differentiate them from competitors.

4. The six paths framework

The six paths framework is another practical tool introduced in the book to help companies identify new market opportunities. The framework involves exploring six different paths: Look across alternative industries, look across strategic groups within industries, look across the chain of buyers, look across complementary product and service offerings, look across functional or emotional appeal to buyers, and look across time.

By exploring these different paths, companies can uncover new customer needs and identify untapped market opportunities. The six paths framework provides a systematic approach for companies to think outside the box and discover new blue ocean market spaces.

5. The importance of execution

While the book focuses on the strategic aspects of blue ocean strategy, it also emphasizes the importance of execution. The authors argue that even the best strategy is useless without effective execution. They provide practical tips and insights on how to overcome execution challenges and ensure successful implementation of blue ocean strategies.

By highlighting the importance of execution, the book reminds companies that creating a blue ocean strategy is not enough – it also requires disciplined execution to turn the strategy into reality and achieve sustainable success.

6. The power of noncustomers

Blue Ocean Strategy Implementation emphasizes the importance of understanding and targeting noncustomers. Noncustomers are individuals or organizations who are not currently using a company's products or services, but have the potential to become customers if their needs are addressed.

By focusing on noncustomers, companies can tap into new market opportunities and create new demand. The book provides examples of companies that successfully targeted noncustomers and created blue ocean market spaces by offering value propositions that addressed their unique needs.

7. The role of leadership

The book highlights the critical role of leadership in implementing a blue ocean strategy. The authors argue that leaders play a key role in driving change, challenging industry assumptions, and inspiring their teams to think differently.

Leaders need to create a culture of innovation and encourage their teams to explore new market spaces. They also need to provide the necessary resources and support to ensure successful execution of blue ocean strategies. The book provides insights and guidance on how leaders can effectively lead the implementation of blue ocean strategies.

8. The importance of continuous innovation

Lastly, Blue Ocean Strategy Implementation emphasizes the importance of continuous innovation. The authors argue that creating a blue ocean strategy is not a one-time event, but an ongoing process that requires continuous innovation and adaptation.

Companies need to constantly monitor market trends, customer needs, and competitive dynamics to stay ahead of the curve. The book provides practical tips and strategies for companies to foster a culture of continuous innovation and ensure long-term success in the blue ocean market space.