Blue Ocean Shift

Beyond Competing – Proven Steps to Inspire Confidence and Seize New Growth

By W. Chan Kim and Renée Mauborgne

Venture out into the vast blue ocean of new markets

Most companies work in crowded markets where everyone fights for the same customers. But what if you could move to a new market with no competition?

The authors spent many years helping businesses. They found a way to help companies move from busy markets to new ones full of chances. They call this a "blue ocean shift."

This summary teaches you how to make a blue ocean shift step-by-step. You'll learn about tools any company can use to find new markets.

You'll also learn:

• how a company changed the way people make french fries;

• how a red clown nose helped a charity raise lots of money; and

• how a hotel chain made things better by getting rid of the front desk.

Go beyond competition with a blue ocean shift

When picking a business plan, most people think you have two choices: be the best quality or the cheapest price. But there's a third way that can do much more. It's called a blue ocean shift.

A blue ocean shift means moving your business to a new market where no one else is selling.

For example, a French company called Groupe SEB makes kitchen tools. They thought about how people make french fries. Everyone used lots of oil to fry them, which is expensive, dangerous, messy, and unhealthy.

In 2006, Groupe SEB made a new tool called ActiFry. It makes french fries with just a spoon of oil. This new way brought in new customers and opened a whole new market.

A blue ocean shift means moving from a market full of competition (a "red ocean") to a new market with lots of chances (a "blue ocean"). This might sound like magic, but there's a simple way to do it.