Blue Ocean Strategy

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TLFeBOOK

Blue Ocean Strategy

Blue Ocean Strategy
How to Create Uncontested Market Space and Make the Competition Irrelevant

H A R VA R D B U S I N E S S S C H O O L P R E S S BOSTON, MASSACHUSETTS

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W. Chan Kim Renée Mauborgne

Copyright 2005 Harvard Business School Publishing Corporation All rights reserved Printed in the United States of America 09 08 07 06 05 5 4 3 2 1

No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the prior permission of the publisher. Requests for permission should be directed to permissions@hbsp.harvard.edu, or mailed to Permissions, Harvard Business School Publishing, 60 Harvard Way, Boston, Massachusetts 02163. Library of Congress Cataloging-in-Publication Data Kim, W. Chan. Blue ocean strategy: how to create uncontested market space and make the competition irrelevant / W. Chan Kim, Renée Mauborgne. p. cm. Includes bibliographical references and index. ISBN 1-59139-619-0 (hardcover: alk. paper) 1. New products. 2. Market segmentation. I. Mauborgne, Renée. II. Title. HF5415.153.K53 2005 658.8 02—dc22 2004020857 The paper used in this publication meets the requirements of the American National Standard for Permanence of Paper for Publications and Documents in Libraries and Archives Z39.48–1992

To friendship and to our families, who make our worlds more meaningful

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Contents
Preface Acknowledgments

ix xiii

Part One: Blue Ocean Strategy
1 2 Creating Blue Oceans Analytical Tools and Frameworks 3 23

Part Two: Formulating Blue Ocean Strategy
3 4 5 6 Reconstruct Market Boundaries Focus on the Big Picture, Not the Numbers Reach Beyond Existing Demand Get the Strategic Sequence Right 47 81 101 117

viii…...

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