La Consolacion University Philippines

Master in Business Administration

ENTREPRENEURSHIP

BOOK REVIEW

Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant

Authors: W. Chan Kim and Renée Mauborgne

Year of Publication: 2005

A fresh concept to business strategy is presented in the ground-breaking book Blue

Ocean Strategy. The authors of the book, W. Chan Kim and Renée Mauborgne, argue that
companies should seek to create "blue oceans" of uncontested market space rather than
competing in crowded "red oceans" of existing markets.

The book offers a thorough examination of successful businesses that have used this
tactic, including Cirque du Soleil and Southwest Airlines. Through in-depth research and case
studies in this book, the authors show how businesses can diverge from conventional business
competition and open up new markets through value innovation.The authors provide a helpful
basis for creating a blue ocean strategy as well. They advise businesses to concentrate on four
crucial areas: eliminating, reducing, raising, and creating. Companies can develop a distinctive
value proposition that sets them apart from rivals or competitors by identifying and eliminating
unneeded variables, lowering aspects that can be raised, raising factors that can be improved, and
adding new features.

The book's relevance in businesses is one of its advantages. The authors make the blue
ocean approach understandable for corporate leaders and entrepreneurs of all levels by offering
specific examples, a clear framework, and comprehensive instructions for putting it into practice.
Another key takeaway from Blue Ocean Strategy is the significance of value innovation in
business particularly in tight competition in today’s market. The authors believe that companies
should not simply focus on improving existing products or services, but should instead focus on
creating entirely new markets by delivering exceptional value to customers.

All things considered, anyone interested in corporate strategy and innovation should read
Blue Ocean Strategy. I highly recommend this book because it offers an unconventional
viewpoint on how businesses might prosper in today's fiercely competitive market by forging
new market niches instead of battling for a share of existing ones. Any business leader who
wants to stay on the business competition should turn to this book's clear framework and
practical examples. Whether you're a business owner, manager, or strategist, this book is sure to
provide valuable insights and inspiration for creating innovative and successful business
strategies.

Submitted by:
CHRISTIAN JAY D.G. PORCIUNCULA
MBA-A