Quotes About Market

Corporate graveyards are full of companies that got to market first with innovative offerings not linked to value.

It appears, then, that neither the company nor the industry is the best unit of analysis in studying the roots of profitable growth. Consistent with this observation, our study shows that the strategic move, and not the company or the industry, is the right unit of analysis for explaining the creation of blue oceans and sustained high performance. A strategic move is the set of managerial actions and decisions involved in making a major market-creating business offering.

Debido a que operan en mercados en los que inicialmente no hay rivales, los innovadores de valor disfrutan de un extraordinario crecimiento. Hablemos de Starbucks, que transformó un producto funcional (café) en otro emocional con su cadena de «oasis inducidos por la cafeína» y que ofrece lugares de reunión chic, relajación y bebidas creativas a base de café. Starbucks opera con unos márgenes que son unas cinco veces superiores a la media del sector.

Blue ocean strategy, by contrast, shows how strategy can shape structure in an organization's favor to create new market space.

blue ocean strategy is a theory of market creation

In blue oceans, competition is irrelevant because the rules of the game are waiting to be set.

A blue ocean strategic move can create brand equity that lasts for decades

Companies should strive to make the competition irrelevant by offering buyers a leap in value.

It is important to distinguish between value innovation as opposed to technology innovation and market pioneering.

Large R&D budgets are not the key to creating new market space. The key is making the right strategic moves.

To stand apart in these overcrowded markets, you need to be creative through value innovation.

Get focused on (..) understanding how to deliver a leap in value to buyers

Our research reveals that most companies' strategic planning process keeps them wedded to red oceans. The process tends to drive companies to compete within existing market space.

To maximize the size of their blue oceans, companies need to take a reverse course. Instead of concentrating on customers, they need to look to noncustomers. And instead of focusing on customer differences, they need to build on powerful commonalities in what buyers value.

In this way, blue ocean strategy makes sense of the strategic paradox many organizations face: the more they focus on coping with the competition, and striving to match and beat their advantages, the more they ironically tend to look like the competition. To which blue ocean strategy would respond, stop looking to the competition. Value-innovate and let the competition worry about you.

Identify where the mass of target buyers is and what prices these buyers are prepared to pay for the products and services they currently use.

Value innovation is not the same as technology innovation.

With your blue ocean move chosen, and its market potential confirmed, it's time to formalize your business model.

strategy canvas, four actions framework, and six paths to reconstruct market boundaries—bring structure to what has historically been an unstructured problem in strategy, informing organizations' ability to create blue oceans systematically.

Companies with a diverse portfolio of businesses, such as Apple, General Electric, Johnson & Johnson, or Procter & Gamble, will always need to swim in both red and blue oceans at a given point in time and succeed in both oceans at the corporate level. This means that understanding and applying the competition-based principles of red ocean strategy are also needed.

There are two ways to create blue oceans. In a few cases, companies can give rise to completely new industries, as eBay did with the online auction industry. But in most cases, a blue ocean is created from within a red ocean when a company alters the boundaries of an existing industry.

strategy perforce becomes a zero-sum game where one company's gain is another company's loss

Strategic move will be well placed to create multiple blue oceans over time, thereby continuing to deliver high growth and profits over a sustained period.

This is not to suggest that companies will suddenly stop competing or that the competition will suddenly come to a halt. On the contrary, the competition will be more present and will remain a critical factor of market reality. As captured on the dynamic PMS map, red ocean and blue ocean strategies are complementary strategic perspectives, with each serving different and important purposes.