Blue Ocean Shift: Beyond Competing By W. Chan And Renée ✓ Solved

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BLUE OCEAN SHIFT: BEYOND COMPETING Author: W CHAN AND RENNE MAUBORGNE

The following is an article that outlines the shortcomings of the book Blue Ocean Shift: Beyond Competing, based on my own thoughts and my research on the evolution of the business market since the publication of the book in 2017.

Introduction: Blue Ocean Strategy (BOS) is a strategy concept introduced in the mid-2000s by W. Chan Kim and Renée Mauborgne (KM), professors at INSEAD. The BOS concept proposes that instead of trying to outcompete competitors in crowded market spaces (red oceans), organizations should seek out uncontested market spaces, or “blue oceans,” where they have the potential to thrive. However, it is my view that moving away from a competitive market alone does not guarantee business success.

Part One: Blue Ocean Shift

The authors define blue ocean shift as the transformation of a business from a highly competitive market to a less competitive environment. This transition aims to bring loyal customers along; however, the current business climate suggests that many factors aside from competition affect business development. Economic competition between super economies and a rapid shift in market trends necessitate a more systematic analysis of market conditions rather than a mere shift to blue oceans.

The book outlines three key components for a successful blue ocean shift: 1) Expand your horizon to identify opportunities, 2) Apply practical tools, and 3) Utilize a “humanness” process that encourages firsthand discovery. Although these components are essential, their application does not guarantee success in less competitive areas. A business may fail even in blue oceans without a solid understanding of market trends.

Part Two: Review of Chapters and Shortcomings

The book is structured into several key steps aimed at helping businesses effectively navigate their transitions.

Step One - Get Started (Chapters 5 and 6)

In these chapters, the authors emphasize targeting profitable areas for blue ocean shifts. Having the right team is crucial, but I argue that understanding the external environment—including political, social, and economic factors—is equally important. If the environment is not conducive, even the best skills may not yield results.

Step Two - Understand Where You Are Now (Chapter 7)

Here, the authors stress the importance of understanding one's current situation. However, they do not fully explain how this understanding aids in predicting future market trends. My research has shown that many entrepreneurs struggle to evaluate market trends effectively, making it challenging to improve business strategies merely by knowing their current situation.

Step Three - Try to Figure Out Where You Could Be (Chapters 8-9)

The authors discuss buyer utility criteria and the key buying cycle, asserting that this knowledge is vital for business growth. While understanding market factors is helpful, failure to grasp the operational environment may hinder the ability to envision future success.

Step Four - Find How You Get There (Chapters 10 and 11)

Chapters 10 and 11 provide strategies for achieving desired business positioning. They suggest investigating various strategic paths, but I believe there are inherent risks. Relying solely on looking across industries without understanding internal dynamics can be misleading. Government regulations and consumer behavior shift alongside market changes, so solutions must account for these fluctuations.

Step Five - Make Your Move (Chapters 12 and 13)

The authors conclude with methods for executing a shift to a less competitive environment by conducting rapid market tests. Yet, evaluating the underlying causes for current business struggles is crucial. Ignoring the economic and political environment when relocating can result in failure, as consumer behavior changes with economic factors.

Conclusion

In conclusion, while the book’s premise of shifting to a less competitive environment has merit, it does not offer comprehensive guidance for long-term sustainability. Frequent relocations based on competition could lead to business failure. Success stems from thorough planning, understanding market dynamics, and carefully evaluating all aspects of one’s business environment. Entrepreneurs should focus on solidifying their foundation rather than adopting a reactive approach based solely on competition.

References

  • Denning, S. (2017). The Blue Ocean Shift: A Guide to Creating Uncontested Market Space. Harvard Business Review.
  • Kim, W. C., & Mauborgne, R. (2004). Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Harvard Business Review Press.
  • Kim, W. C., & Mauborgne, R. (2017). Blue Ocean Shift: Beyond Competing. Harvard Business Review Press.
  • Porter, M. E. (1996). What is Strategy? Harvard Business Review.
  • Martin, R. L. (2014). The Design of Business: Why Design Thinking is the Next Competitive Advantage. Harvard Business Review Press.
  • Christensen, C. M. (1997). The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail. Harvard Business Review Press.
  • Rogers, E. M. (2003). Diffusion of Innovations. Free Press.
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  • Teece, D. J. (2007). Explicating Dynamic Capabilities: The Nature and Microfoundations of (Sustainable) Enterprise Performance. Strategic Management Journal.
  • Kotler, P., & Keller, K. L. (2016). Marketing Management. Pearson.

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