Part One
      Blue Ocean
      Strategy
   Chapter 1: Creating Blue Oceans
        New Market Space
  Red oceans- represent all the industries in 
   existence today: the known market space.
  Blue oceans- denote all the industries not in 
   existence today: the unknown market space.
  Example- Cirque du Soleil was an “untapped 
   market space”
    The Rising Imperative of Creating Blue 
             Oceans
  • Driving forces to creating blue oceans:
    –Technological advances
    –Increase in supply and decrease in demand
    –Globalization
     • Trade Barriers 
     • Communications
    –Increasing price wars and shrinking profit margins
    –Differentiating products is more difficult
   From Company and Industry to Strategic 
           Move
  • Strategic Move, and not the company or the 
   industry, is the best unit of analysis for 
   explaining the creation of blue oceans and 
   sustained high performance.
  • Making a major market-creating business 
   offering is a managerial duty.
  • Blue oceans were achieved by diverse 
   industries, organization, firms, and managers.
   Value Innovation: The Cornerstone of Blue 
         Ocean Strategy
  • Instead of focusing on beating the 
   competition, one focuses on making the 
   competition irrelevant by creating a leap in 
   value for buyers and ones company.
  • Affect both its cost structure and its value to 
   buyers.
  • Over time, costs are reduced further as 
   economies of scale kick in.