Chapter 1 Creating Blue Oceans Flashcards
The only way to beat the competition is to
Stop trying to beat the competition
Red oceans represent all the
Industries in existence today. This is the known marketplace
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
In red oceans companies try to outperform their rivals to
Grab a greater share of existing demand
As the market place gets crowded, prospects for profits and growth are
Reduced
Products become commodities, and cut throat 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
Although some blue oceans are created well beyond existing boundaries, moat are created from
Within red ocean by expanding existing industry boundaries.
In blue oceans, competition is irrelevant because
The rules of the game are waiting to be set
It will always be important to swim successfully in the red ocean by
Outcompeting rivals
Red oceans will always matter and will always
Be a fact of business life
The dominant focus of strategy work over the past 30 years has been on
Competition based red ocean strategies.
Industries never
Stand still
Industries continuously
Evolve
Operations improve, markets expand, and players
Come and go
History teaches us that we have a hugely underestimated
Capacity to create new industries and recreate existing ones
Given that these system are designed for standardization and continuity
Such a replacement shows how significant the expansion of blue oceans has been
To focus on the red ocean is therefore to accept the key constraining factors of war
Limited terrain and the need to beat an enemy to succeed- and to deny the distinctive strength of the business world: the capacity to.creare new market space that is uncontested
