The world has seen a lot of changes in the past decade, since the first Blue Ocean Strategy (BOS) book was launched in 2005. Three fundamental changes affecting business are making BOS even more relevant today.
- Competition: back in 2005, the increase in competition and the pressure it placed on costs and profits was at the heart of the need for Blue Ocean Strategy. Today, competition continues to intensify with new players coming from emerging markets and new technologies helping businesses transact and communicate globally.
- Social media: Facebook was barely one year old in 2005. Today, the prevalence of social media, blogs and forums have empowered customers to easily voice their excitement or frustration with any business offering. In this “rate-me” economy, me-too offerings have a hard time gaining momentum. On the other hand, social media helps Blue Ocean value innovations get even faster exposure through word-of-mouth and positive ratings.
- Emerging markets: the rise of the BRIC countries and other emerging markets has attracted many global competitors. As they are vying for market share, they are at times struggling due to overly complex and costly offerings designed for their home markets. Local success often requires creating more relevant value at a lower cost. Witness the rapid success of Chinese smart phone maker Xiaomi, dubbed “the Apple of China” and now the third largest global smart phone company behind Samsung and Apple, just five years after the company was created.
What’s in the new Blue Ocean Strategy book?
The latest edition of the book and its new chapters bring many new insights about the implementation of Blue Ocean Strategy, along with new and updated case studies.
In particular, it addresses questions such as:
- What do you do if your Blue Ocean becomes red?
- How can you create a sustainable Blue Ocean?
- What are the most common Red Ocean traps?
For more on the “Red Ocean Traps”, check out this article in the March issue of Harvard Business Review.