W. Chan Kim and Renée Mauborgne dispel blue ocean myths

Abstract

Purpose – W. Chan Kim and Renée Mauborgne, professors of strategy at INSEAD and co-directors of the INSEAD Blue Ocean Strategy Institute, introduced and defined the theory and practice of blue ocean strategy – a unique methodology for creating commercially relevant new market space – in 2005. Despite the widespread interest in the concept, many managers still aren’t clear how blue ocean strategy differs from disruption theory, niche marketing, customer-focused innovation and other pioneering practices. Design/methodology/approach – To better understand how to use blue ocean strategy methodologies and tools, the interviewer asked the researchers to explain some of the underpinning concepts. Findings – Blue ocean strategy is about being first to get the customer offering right by linking innovation to value. Practical implications – A blue ocean strategist gains insights about reconstructing market boundaries not by looking at existing customers, but by exploring noncustomers. Originality/value – Managers will learn how to use blue ocean strategy to break the value-cost trade off, thereby opening up new market space.