The Little Book of Big Decision Models

MODEL 48

KIM AND MAUBORGNE’S BLUE OCEAN STRATEGY

Use this to escape from tired, over-crowded old markets and find a new ocean to play in.

W. Chan Kim and Renée Mauborgne’s model differentiates between what they call Red and Blue Ocean Strategies. However, you should realise that it is essentially a theoretical model that describes what should be done, it doesn’t actually tell you how to do it. That said it still provides a valuable way of thinking about where an organisation should position itself vis-à-vis its competition.

Red Ocean Strategy	Blue Ocean Strategy
Concentrates on beating the competition in existing markets. Looks to maximise existing demand. Believes that there is a trade-off between value and cost and aligns its strategy ...