81 Impressive Quotes from The Blue Ocean Strategy by W. Chan Kim
''Imagine a market universe composed of two sorts of oceans: red
oceans and blue oceans. Red oceans represent all the industries in existence
today. This is the known market space. Blue oceans denote all the industries not in existence today. This is the unknown market space.''
''In the red oceans, industry boundaries are defined and accepted,
and the competitive rules of the game are known. Here, companies try to outperform their rivals to grab a greater
share of existing demand. As the market space gets crowded, prospects for
profits and growth are reduced. Products become commodities, and cutthroat
competition turns the red ocean bloody.Blue oceans, in contrast, are defined by
untapped market space, demand creation, and the opportunity for highly
profitable growth…In blue oceans, competition is irrelevant
because the rules of the game are waiting to be set.''
''Companies need to go beyond competing. To seize new profit and
growth opportunities, they also need to create blue oceans.''
''While supply is on the rise as global competition intensifies,
there is no clear evidence of an increase in demand relative to supply, and
statistics even point to declining populations in many developed markets.''
''For major product and service categories, brands are generally
becoming more similar, and as they are becoming more similar, people
increasingly select based on price. People no longer insist, as in the past,
that their laundry detergent be Tide. Nor will they necessarily stick to
Colgate when Crest is on sale, and vice versa. In overcrowded industries,
differentiating brands becomes harder in both economic upturns and downturns.''
''Value innovation is the cornerstone of blue ocean strategy. We
call it value innovation because instead of focusing on beating the
competition, you focus on making the competition irrelevant by creating a leap
in value for buyers and your company, thereby opening up new and uncontested
market space. Value innovation places equal emphasis on value and innovation.''
''Value without innovation tends to focus on value
creation on an incremental scale,
something that improves value but is not sufficient to make you stand out in
the marketplace. Innovation without value
tends to be technology-driven, market pioneering, or futuristic, often shooting
beyond what buyers are ready to accept and pay for. In this sense, it is
important to distinguish between value innovation as opposed to technology
innovation and market pioneering.''
''Value
innovation occurs only when companies align innovation with utility, price, and
cost positions. If they fail to anchor innovation with value in this way,
technology innovators and market pioneers often lay the eggs that other
companies hatch.''
''By
breaking the market boundaries of theater and circus, Cirque du Soleil gained a
new understanding not only of circus customers but also of circus non-customers:
adult theater customers. This led to a whole new circus concept that broke the
value-cost trade-off and created a blue ocean of new market space.''
''Cirque
du Soleil offers the best of both circus and theater, and it has eliminated
or reduced everything else. By offering unprecedented utility, Cirque du Soleil
created a blue ocean and invented a new form of live entertainment,one that is
markedly different from both traditional circus and theater. At the same time,
by eliminating many of the most costly elements of the circus, it dramatically
reduced its cost structure, achieving both differentiation and low cost. Cirque
strategically priced its tickets against those of the theater, lifting the
price point of the circus industry by several multiples while still pricing its
productions to capture the mass of adult customers, who were used to theater
prices.''
''Of course, there is no such thing as a riskless strategy. Strategy will always involve
both opportunity and risk, be it a red ocean or a blue ocean initiative.''
''Effective
blue ocean strategy should be about risk minimization and not risk taking.''
''To
pursue both value and low cost, you should resist the old logic of benchmarking
competitors in the existing field and choosing between differentiation and cost
leadership. As you shift your strategic focus from current competition to
alternatives and noncustomers, you gain insight into how to redefine the
problem the industry focuses on and thereby reconstruct buyer value elements
that reside across industry boundaries.''
''To
break the trade-off between differentiation and low cost and to create a new
value curve, there are four key questions to challenge an industry’s strategic
logic and business model:
Which
of the 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?
Which
factors should be created
that the industry has never offered? ''
''THE FIRST PRINCIPLE of blue ocean strategy is
to reconstruct market boundaries to break from the competition and create blue
oceans. This principle addresses the search risk
many companies struggle with. The challenge is to successfully identify, out of
the haystack of possibilities that exist, commercially compelling blue ocean
opportunities. This challenge is key because managers cannot afford to be
riverboat gamblers betting their strategy on intuition or on a random drawing.''
''Products
or services can take different forms and perform different functions
but serve the same objective. Consider cinemas versus restaurants. Restaurants
have few physical features in common with cinemas and serve a distinct
function: they provide conversational and gastronomical pleasure. This is a
very different experience from the visual entertainment offered by cinemas.
Despite the differences in form and function, however, people go to a
restaurant for the same objective that they go to the movies: to enjoy a night
out. These are not substitutes, but alternatives to choose from.''
''In
making every purchase decision, buyers implicitly weigh alternatives, often
unconsciously. Do you need a self-indulgent two hours? What should you do to
achieve it? Do you go to the movies, have a massage, or enjoy reading a
favorite book at a local café? The thought process is intuitive for individual
consumers and industrial buyers alike.For
some reason, we often abandon this intuitive thinking when we become sellers.
Rarely do sellers think consciously about how their customers make trade-offs
across alternative industries. A shift in price, a change in model, even a new
ad campaign can elicit a tremendous response from rivals within an industry,
but the same actions in an alternative industry usually go unnoticed.Trade
journals, trade shows, and consumer rating reports reinforce the vertical walls
between one industry and another. Often, however, the space between alternative industries provides opportunities for
value innovation.''
― W. Chan Kim, Blue Ocean Strategy: How To Create Uncontested Market Space And Make The Competition Irrelevant
''Strategic
groups can generally be ranked in a rough hierarchical order built on two
dimensions: price and performance. Each jump in price tends to bring a corresponding
jump in some dimensions of performance. Most companies focus on improving their
competitive position within
a strategic group. Mercedes,BMW, and
Jaguar, for example, focus on outcompeting one another in the luxury car
segment as economy carmakers focus on excelling over one another in their strategic
group. Neither strategic group, however, pays much heed to what the other is
doing because from a supply point of view they do not seem to be competing.The
key to creating a blue ocean across existing strategic groups is to break out
of this narrow tunnel vision by understanding which factors determine customers’
decisions to trade up or down from one group to another.''
― W. Chan Kim, Blue Ocean Strategy: How To Create Uncontested Market Space And Make The Competition Irrelevant
''What
are the strategic groups in your industry? Why do customers trade up for the
higher group, and why do they trade down for the lower one? ''
― W. Chan Kim, Blue Ocean Strategy: How To Create Uncontested Market Space And Make The Competition Irrelevant
''Challenging an industry’s
conventional wisdom about which buyer group to target can lead to the discovery
of a new blue ocean. By looking across buyer groups, companies can gain new
insights into how to redesign their value curves to focus on a previously
overlooked set of buyers.''
― W. Chan Kim, Blue Ocean Strategy: How To Create Uncontested Market Space And Make The Competition Irrelevant
''By questioning conventional definitions of who can and should be
the target buyer,companies can often see fundamentally new ways to unlock
value. Consider how Canon copiers created the small desktop copier industry by
shifting the target customer of the copier industry from corporate purchasers
to users.''
― W. Chan Kim, Blue Ocean Strategy: How To Create Uncontested Market Space And Make The Competition Irrelevant
''What is the chain of buyers in your industry? Which buyer group
does your industry typically focus on? If you shifted the buyer group of your
industry, how could you unlock new value?''
''What
is the context in which your product or service is used? What happens before,
during, and after? Can you identify the pain points? How can you eliminate
these pain points through a complementary product or service offering?''
''Competition
in an industry tends to converge not only on an accepted notion of the scope of
its products and services but also on one of two possible bases of appeal. Some
industries compete principally on price and function largely on calculations of
utility; their appeal is rational. Other industries compete largely on
feelings; their appeal is emotional.Yet the appeal of most products or services
is rarely intrinsically one or the other. Rather it is usually a result of the
way companies have competed in the past, which has unconsciously educated
consumers on what to expect.''
''When
companies are willing to challenge the functional-emotional orientation of
their industry, they often find new market space. We have observed two common
patterns. Emotionally oriented industries offer many extras that add price
without enhancing functionality. Stripping away those extras may create a
fundamentally simpler, lower-priced, lower-cost business model that customers
would welcome. Conversely, functionally oriented industries can often infuse
commodity products with new life by adding a dose of emotion and, in so
doing,can stimulate new demand.Two well-known examples are Swatch, which
transformed the functionally driven budget watch industry into an emotionally
driven fashion statement, or The Body Shop, which did the reverse, transforming
the emotionally driven industry of cosmetics into a functional, no-nonsense
cosmetics house.''
''Does
your industry compete on functionality or emotional appeal? If you compete
on emotional appeal, what elements can you strip out to make it functional? If
you compete on functionality, what elements can be added to make it emotional?''
''Three
principles are critical to assessing trends across time. To form the basis of a
blue ocean strategy, these trends must be decisive to your business, they must
be irreversible, and they must have a clear trajectory. Many trends can be
observed at any one time—for example, a discontinuity in technology, the rise
of a new lifestyle, or a change in regulatory or social environments. But
usually only one or two will have a decisive impact on any particular business.
Having identified a trend of this nature, you can then look across time and ask
yourself what the market would look like if the trend were taken to its logical
conclusion.Working
back from that vision of a blue ocean strategy, you can identify what must be
changed today to unlock a new blue ocean.''
''What
trends have a high probability of impacting your industry, are irreversible,
and are evolving in a clear trajectory? How will these trends impact your
industry? Given this, how can you open up unprecedented customer utility?''
― W. Chan Kim, Blue Ocean Strategy: How To Create Uncontested Market Space And Make The Competition Irrelevant
''By thinking across conventional boundaries of competition, you can
see how to make convention-altering, strategic moves that reconstruct
established market boundaries and create blue oceans. The process of
discovering and creating blue oceans is not about predicting or preempting
industry trends. Nor is it a trial-and error process of implementing wild new
business ideas that happen to come across managers’ minds or intuition. Rather,
managers are engaged in a structured process of reordering market realities in
a fundamentally new way.Through reconstructing existing market elements across
industry and market boundaries, they will be able to free themselves from
head-to-head competition in the red ocean.''
''Do
your business unit heads lack an understanding of the other businesses in your
corporate portfolio? Are your strategic best practices poorly communicated
across your business units? Are your low-performing units quick to blame their
competitive situations for their results? If the answer to any of these
questions is yes, try drawing, and then sharing, the strategy canvases of your
business units.''
''A
company’s pioneers
are the businesses that offer
unprecedented value. These are your blue ocean offerings, and they are the most
powerful sources of profitable growth. These businesses have a mass following
of customers. Their value curve diverges from the competition on the strategy
canvas. At the other extreme are settlers—businesses
whose value curves conform to the basic shape of the industry’s. These are
me-too businesses. Settlers will not generally contribute much to a company’s
future growth. They are stuck within the red ocean…. the more an industry is
populated by settlers, the greater is the opportunity to value-innovate and
create a blue ocean of new market space.''
''Chief executives should
instead use value and innovation as the important parameters for managing their
portfolio of businesses. They should use innovation because, without it,
companies are stuck in the trap of competitive improvements. They should use
value because innovative ideas will be profitable only if they are linked to
what buyers are willing to pay for.Clearly, what
senior executives should be doing is getting their organizations to shift the
balance of their future portfolio toward pioneers. That is the path to
profitable growth.''
''Noncustomers tend to
offer far more insight into how to unlock and grow a blue ocean than do
relatively content existing customers.''
''The
starting point is buyer utility. Does your offering unlock exceptional utility?
Is there a compelling reason for the target mass of people to buy it? Absent
this, there is no blue ocean potential to begin with. Here there are only two
options. Park the idea, or rethink it until you reach an affirmative
answer.When you clear the exceptional utility bar, you advance to the second
step:setting the right strategic price. Remember, a company does not want to
rely solely on price to create demand. The key question here is this: Is your
offering priced to attract the mass of target buyers so that they have a
compelling ability to pay for your offering? If it is not, they cannot buy it.
Nor will the offering create irresistible market buzz.These first two steps
address the revenue side of a company’s business model. They ensure that you
create a leap in net buyer value, where net buyer value equals the utility
buyers receive minus the price they pay for it.''
― W. Chan Kim, Blue Ocean Strategy: How To Create Uncontested Market Space And Make The Competition Irrelevant
''Many
of the most powerful blue ocean ideas have tremendous value but in themselves
consist of no new technological discoveries. As a result they are neither
patentable nor excludable and hence are vulnerable to imitation.''
''The
key here is not to pursue pricing against the competition within an industry
but rather to pursue pricing against substitutes and alternatives across
industries and non-industries. Had Ford, for example, priced its Model T against
other autos, which were more than three times the price
of horse-drawn carriages, the market for the Model T would not have exploded.''
''To
maximize the profit potential of a blue ocean idea, a company
should start with the strategic price and then deduct its desired profit margin
from the price to arrive at the target cost. Here, price-minus costing, and not
cost-plus pricing, is essential if you are to arrive at a cost structure that
is both profitable and hard for potential followers to match.''
''Freemium
is yet another pricing strategy some companies are
using by which a product or service (typically a digital offering such as
software, media, games, or web services) is provided free of charge to pull in
the target mass, but a premium is charged for proprietary features,
functionality, or virtual goods. By being both “free” and “premium,” companies
are striving to be strategically priced to capture the target mass while earning
profit for the premium features those users, having used the product or
service, will feel compelled to buy and upgrade to. These are all examples of pricing innovation.''
''Before
companies go public with an idea and set out to implement it, they should make
a concerted effort to communicate to employees that they are aware of the
threats posed by the execution of the idea. Companies should work with
employees to find ways of defusing the threats so that everyone in the company
wins, despite shifts in people’s roles, responsibilities, and rewards.''
''Don’t rely on market
surveys. To what extent does your top team actively observe the market
firsthand and meet with your most disgruntled customers to hear their concerns?
Do you ever wonder why sales don’t match your confidence in your product?
Simply put, there is no substitute for meeting and listening to dissatisfied
customers directly.''
''What
actions consume your greatest resources but have scant performance impact?
Conversely, what activities have the greatest performance impact but are
resource starved? When the questions are framed in this way, organizations
rapidly gain insight into freeing up low-return resources and redirecting them
to high-impact areas. In this way, both lower costs and higher value are
simultaneously pursued and achieved.''
''Do
you indiscriminately try to motivate the masses? Or do you focus on key
influencers, your kingpins? Do you put the spotlight on and manage kingpins in
a fishbowl based on fair process? Or do you just demand high performance and
cross your fingers until the next quarter numbers come out? Do you issue grand
strategic visions? Or do you atomize the issue to make it actionable to all
levels?''
''To
knock down the political hurdles, you should also ask yourself two sets of questions:
Who
are my devils? Who will fight me? Who will lose the most by the future
blue ocean strategy? Who
are my angels? Who will naturally align with me? Who will gain the most
by the strategic shift? Don’t
fight alone. Get the higher and wider voice to fight with you. Identify your
detractors and supporters—forget the middle—and strive to create a winwin outcome
for both. But move quickly. Isolate your detractors by building a broader
coalition with your angels before a battle begins. In this way, you will discourage
the war before it has a chance to start or gain steam.''
''Key to winning over your
detractors or devils is knowing all their likely angles of attack and building
up counterarguments backed by irrefutable facts and reason.''
― W. Chan Kim, Blue Ocean Strategy: How To Create Uncontested Market Space And Make The Competition Irrelevant
''Conventional
theory of organizational change rests on transforming the mass. So change
efforts are focused on moving the mass, requiring steep resources and long time
frames—luxuries few executives can afford. Tipping point leadership,by
contrast, takes a reverse course. To change the mass, it focuses on
transforming the extremes: the people, acts, and activities that exercise a
disproportionate influence on performance. By transforming the extremes,
tipping point leaders are able to change the core fast and at low cost to
execute their new strategy.''
''The
more removed people are from the top and the less they have been involved
in the creation of the strategy, the more this trepidation builds. On the front
line, at the very level at which a strategy must be executed day in and day
out, people can resent having a strategy thrust upon them with little regard
for what they think and feel. Just when you think you have done everything
right,things can suddenly go very wrong on your front line.''
― W. Chan Kim, Blue Ocean Strategy: How To Create Uncontested Market Space And Make The Competition Irrelevant
''People care
as much about the justice of the process through which an
outcome is produced as they do about the outcome itself. People’s satisfaction
with the outcome and their commitment to it rose when procedural justice was
exercised.''
''At the highest level, there are three propositions essential to
the success of strategy: the value proposition, the profit proposition, and the
people proposition. For any strategy to be successful and sustainable, an organization
must develop an offering that attracts buyers; it must create a business model
that enables the company to make money out of its offering; and it must
motivate the people working for or with the company to execute the strategy.''
''The
excitement over Napster’s spectacular growth prevented it from appreciating
that it needed an external people proposition that offered differentiation and
low cost for its key partners, the record labels. Rather than
work to build a compelling people proposition that would strike a win-win arrangement
with record labels, Napster took a belligerent approach, declaring it would
advance with or without the record labels’ support. The rest is history; Napster
was forced to shut down due to copyright infringement.''
''CREATING A BLUE OCEAN is not a static
achievement but a dynamic process. Once a company creates a blue ocean and its
powerful performance consequences are known, sooner or later imitators appear
on the horizon.''
''A blue ocean strategy brings with it considerable barriers to
imitation that effectively prolong sustainability. They range from alignment to
cognitive,organizational, brand, economic, and legal barriers. More often
than not, a blue ocean strategy will go without credible challenges for many
years. Cirque du Soleil’s blue ocean endured over twenty years; Comic Relief’s,
nearly thirty years; Apple’s iTunes’, now more than ten years.''
''To
avoid the trap of competing at the individual business level, monitoring value
curves on the strategy canvas is essential. Monitoring value curves signals
when to value-innovate and when not to. It alerts an organization to reach out
for another blue ocean when its value curve begins to converge with those of the
competition. It also keeps a company from pursuing another blue ocean when
there is still a huge profit stream to be collected from its current offering.''
''Salesforce.com has
repeatedly broken away from the pack by value-innovating again as other companies’
value curves began to converge toward its own. In this way, it has successfully
avoided the trap of competing and kept itself in the blue.''
''By plotting the corporate portfolio as pioneers, migrators, and
settlers on the dynamic PMS map, executives can see at a glance where the
gravity of its current portfolio of businesses is, how this has shifted over
time, and when there is a need to create a new blue ocean to renew the
portfolio…To maximize growth prospects then, a
company’s portfolio should have a healthy balance between pioneers for future
growth and migrators and settlers for cash flow at a given point in time. Over
time, however, a company’s current pioneers will eventually become migrators
and then ultimately settlers as imitation begins and intensifies. To maintain
strong profitable growth, executives need to ensure that as current pioneers
become migrators, the company is set to launch a new blue ocean either by
regenerating an existing business or via a new business
offering. Consider Apple Inc. in this regard.''
''The
iPod revolutionized the digital music market, creating an uncontested blue
ocean,which was strengthened further with its launch of the iTunes Music Store
two years later. As the iPod was eventually imitated and sank toward migrator
status,Apple reached out and launched its next blue ocean, the iPhone.Apple
continued to launch subsequent blue oceans over time, including its app store
and the iPad to ensure the next chunk of growth at the corporate level as
others began to encroach on the blue oceans it was creating in its individual businesses.''
''To
create new demand, an organization needs to turn its focus to noncustomers and
why they refuse to patronize an industry.Noncustomers,
not
customers, hold the greatest insight into an
industry’s pain points and points of intimidation that limit the size and
boundary of the industry.This is why to create new demand, analyzing and
understanding the three tiers of noncustomers are essential components of blue
ocean strategy. A focus on existing customers, by contrast, tends to drive
organizations to do more of the same for less, thereby anchoring companies in
the red ocean irrespective of their blue
ocean intent.''
― W. Chan Kim, Blue Ocean Strategy: How To Create Uncontested Market Space And Make The Competition Irrelevant
''Under
traditional competitive strategy, differentiation is achieved by providing
premium value at a higher cost to the company and at a higher price for
customers. Think Mercedes Benz. Differentiation is a strategic choice that
reflects the value-cost trade-off in a given market structure. Blue ocean
strategy,by contrast, is about breaking the value-cost trade-off to open up new
market space. It is about pursuing differentiation and low cost simultaneously.''
''When
companies mistakenly assume that blue ocean strategy is synonymous
with differentiation, they all too often miss the and-and of blue ocean
strategy. Instead they tend to focus on what to raise and create to stand apart
and pay scant heed to what they can eliminate and reduce to simultaneously
achieve low cost. In this way, organizations inadvertently become either
premium competitors or differentiated niche players in existing industry space
rather than creating value innovation that makes the competition irrelevant.''
''Blue ocean strategy is not about being first to market. Rather it’s about being first to get it right by linking innovation to value. One need only look to Apple here. The iMac wasn’t the first PC, the iPod wasn’t the first MP3 player, iTunes wasn’t the first digital music store, and the iPhone certainly wasn’t the first smart phone, nor for that matter was the iPad the first smart tablet. But what they all successfully did was link innovation to value. Organizations that mistakenly assume blue ocean strategy is about being first to market all too often get their priorities wrong. They inadvertently put speed before value. While speed is important, speed alone will not unlock a blue ocean. Corporate graveyards are full of companies that got to market first with innovative offerings not linked to value.''
''Blue ocean strategy
pursues differentiation and low cost simultaneously by reconstructing market
boundaries. Instead of focusing on low cost per se, it seeks to create a leap
in buyer value at a lower cost. Further, a blue ocean strategic move captures
the mass of target buyers not through low-cost pricing, but through strategic pricing. The key here is not to
pursue pricing against the competition within an industry but to pursue pricing
against substitutes and alternatives that are currently capturing the
noncustomers of your industry.Using
strategic pricing, a blue ocean does not have to be created at the low end of
the market. Instead it can be created at the high end, as Cirque du
Soleil,Starbucks, or Dyson did; at the low end, as Southwest Airlines or Swatch
did; or in middle range of market.''
''Blue
ocean strategy is not
synonymous with innovation per se. Unlike
blue ocean strategy, innovation is a very broad concept that is based on an
original and useful idea regardless of whether that idea is linked to a leap in
value that can appeal to the mass of buyers. Take Motorola’s Iridium. Was it an
innovation?Sure. It was the first global phone and it was useful. But was it a
value innovation? No. As Motorola learned, a breakthrough in technology is not
necessarily synonymous with a breakthrough in value that can attract the target
mass of buyers.''
''Many technology
innovators fail to create and capture blue oceans by confusing innovation with
value innovation, the cornerstone of blue ocean strategy. Value innovation, not
innovation per se, is the singular focus of blue ocean strategy. Simply
creating something original and useful through innovation is not enough to
create and capture a blue ocean, even if the innovation wins the company
accolades and its researchers a Nobel Prize. To
capture a commercially compelling blue ocean, companies need a strategy that
can align their value, profit, and people propositions in pursuit of both
differentiation and low cost. When organizations fail to register the
difference between value innovation and innovation per se, they all too often
end with an innovation that breaks, keeping them by and large stuck in the red
ocean.''
''Blue
ocean strategy requires more than a compelling value proposition. sustainable
success can only be achieved when a company’s value proposition
is supported by key internal and external people involved in its execution and
is complemented by a strong profit proposition. Hence, to equate blue ocean
strategy with a theory of marketing myopically masks the holistic approach
needed to create a sustainable high-performance strategy, including overcoming
organizational hurdles, winning people’s trust and commitment, and creating the
proper incentives via a compelling people proposition. This inaccurate
understanding of blue ocean strategy can often lead to a lack of alignment
across the three strategy propositions of value, profit, and people.''
''Blue
ocean strategy should also not be confused with a niche strategy. While the
field of marketing has placed significant emphasis on finer segmentation to
effectively capture niche markets, blue ocean strategy works in the reverse
direction. It is more about desegmenting markets by focusing on key
commonalities across buyer groups to open up and capture the largest catchment
of demand. When practitioners confuse the two, they all too often are driven to
look for customer differences for niche markets in the existing industry space
rather than the commonalities that cut
across buyer groups in search of blue oceans
of new demand.''
''Blue
ocean strategy argues that firms need to go beyond competing and the mere
improvement of product or services in overcrowded industries and pursue value
innovation to open up new market space and make the competition irrelevant.
Hence, while understanding how to compete in existing market space is important,
blue ocean strategy addresses the critical challenge of how to redefine
industry boundaries and create new market space when structural conditions work
against you. This is how
blue ocean strategy deals with competition to produce continuous renewal and
the growth of industries.''
''Creative
destruction or disruption occurs when an innovation disrupts an existing market
by displacing an earlier technology or existing product or service. The word
“displacement” is important here, as without displacement, disruption would not
occur. In the case of photography, for example, the innovation of digital
photography disrupted the photographic film industry by effectively displacing
it. So today digital photography is the norm, and photographic film is seldom
used. Disruption is, hence, largely consonant with Schumpeter’s concept of
creative destruction, whereby the old is incessantly destroyed or replaced by
the new. Unlike disruption, however, blue ocean strategy does not necessitate
displacement or destruction. Blue ocean strategy is a broader concept that goes
beyond creative destruction to embrace nondestructive creation, which is its
overriding emphasis.''
''Blue ocean strategy is not about finding a better or lower-cost
solution to the existing problem of an industry, both of which trigger
disruption and displacement of existing products and services. Instead, blue
ocean strategy is about redefining the problem itself, which tends to create
new demand or an offering that often complements rather than displaces existing products and services.''
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