The W. Chan Kim and Renée Mauborgne Blue Ocean Strategy Reader
by W. Chan Kim, Renée A. Mauborgne
Red Ocean Traps
The Mental Models That Undermine Market-Creating Strategies
IN AMERICA, CORPORATE PERFORMANCE has been deteriorating for decades. According to Deloitte’s landmark study “The Shift Index,” the aggregate return on assets of U.S. public companies has fallen below 1%, to about a quarter of its 1965 level. As market power has moved from companies to consumers, and global competition has intensified, managers in almost all industries have come to face steep performance challenges. To turn things around, they need to be more creative in developing and executing their competitive strategies. But long-term success will not be achieved through competitiveness alone. Increasingly, it will depend on the ability to generate new demand and ...