nice choice to read in restroom

This book is thought provoking to some extent. It is more like an aggregated highly simplified case analysis. Some of its case analysis is convincing at the first sight, but seem to be too short to be fully discussed. Due to this book is not a systematic academic publication, it’s suffice to be a good book to read in the rest room.

Marketing and industries are constantly changing; especially in modern ICT era, new technologies and innovations exponentially come into being. New adoptions and applications of any small part in certain industry or market place would make change to the whole chain. Marketing participants include large enterprises and start-ups should always remind themselves to foresee the trend and get through the existing bedlam. It’s the means to renovate and survive.

There are some ideas valuable to make me think more. In Chapter one, one of the key ideas is that “industries never stand still.” This is the case and I have been long falling into a static framework of marketing situation. When I think about 4P segmentations, niches and other common know terms, I rarely recall the industries in a turbulent and constant moving motion; thereby some of my projective ideas and suggestions for product marketing mix would be in vain and backfire.

Companies with the help of “innovation creation” can explore a new area of their blue ocean. The so called blue ocean is more easy to be understand with the comparison of red ocean where appears to be bloody competitive full of creative destruction. Companies withholding blue ocean strategy can detour fierce competition and create new marketing area. Actually the notion of Blue Ocean has been long discussed in the past. The term “Blue Ocean” is just a neology accentuated by these two authors.

In general, there are six principles of blue ocean strategy mentioned through the book.

• The first principle of blue ocean strategy is to reconstruct market boundaries to break from the competition and create blue oceans.

This is not a new idea. To me it’s more like a new term rather than new concept. It also overlaps of third principle in some way. In the process of product-based innovation and marketing efforts, companies constantly try to develop and position products with add-valued and less existing competition ideas on catering for potential demands. Comparing the circus example in the book, it’s more like a lucky mash-up trial; isn't it more like a coincident rather than a systematically strategy after well-carried research? So called strategy in fact should be broader instead of taking advantage of integrating existing functions and simply making blind combinations.

• The second principle of blue ocean strategy is to focus on the big picture, not the numbers.

The core idea of this strategy is to get rid of ruminated tactics; instead of that, drawing strategy canvas take effects. “Strategic Canvas” and “Value Curve” are very useful analytical tools for companies. According to the idea of the authors, the curve itself has little add-value; the shape of the curve matters. It tells the differences and comparative advantages of certain companies. However, one point would be easily cast doubt on; in the book, it says the ups and downs of the curve are important to know if a certain company holds distinct strategy in the market. But different people have different preference to allocate the key factors, thus a strategy of mediocrity might appear to be going ups and downs. In the book, the authors also mention in the case study that different staffers would have their own consideration when they draw the canvas. Though they reach something in common in the end, god knows if it’s against some of their willingness. Due to peer pressure and compliant personalities, common thoughts may or may not be reached in different companies with diversified culture and management. Comparing the traditional combination of PEST and SWOT models to evaluate the macro and micro situation a company face, I’d say it would be more convincing and make sense to most of marketers.

• The third principle of blue ocean strategy is to reach beyond existing demand. This is a key component of achieving value innovation.

It’s cliché and overlapping with principle one to some extent. Producers, product and services based companies spare no effort to pursue something “new.” Not only for blue ocean strategy, even in the so called traditional “red ocean” market, participants also seeking something new constantly and breaking existing frontiers. It’s far-fetched to be put as a distinct strategy for “Blue Ocean.”

• The fourth principle of blue ocean strategy is to get the strategic sequence right.

The sequence that the two authors mention in the book is: buyer utility, price, cost, adoption, through which a commercially viable blue ocean idea should take shape. I think it’s a little bit simplified and abstracted. Moreover, I’d say it might put companies at risk if prioritizing “buyer utility” at the very first. In the course in Marshall GSBA-520 I understand the concept of “9× effects,” which stands for that customers always overvalue the existing benefits of an entrenched product by a factor of three, while developer over value the new benefits of their innovation by a factor of three. The result is a mismatch of nine to one, or 9×, between what innovators think the customers really want. There is always unsymmetrical understanding between developers and customers. In this case, what if the marketing research on buyer utility is not accurate projected? Understandable, the followed sequence wouldn’t matter anymore, they collapse in like domino.

• The fifth principle of blue ocean strategy is to overcome key organizational hurdles.

This makes me think how important internal communication is during daily management. It’s of course important, and we can’t say it’s not even more important for those struggling in “Red Ocean.”

• The sixth principle of blue ocean strategy is to build people’s trust and commitment deep in the ranks and inspire their voluntary cooperation.

The authors address “procedural justice” as an important concept to carry out. Simply to say, fair process should be executed throughout company’s management. Still, it’s important not only for blue ocean strategy, but also the whole society.

To sum up, this book is not as good as I expect, but worth to kill some time.