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Get this book, BOS

When big corporations as diverse as Nintendo (byword for games console) and Cirque du Soleil (read: circus in Las Vegas) are adopting Blue Ocean Strategy' (BOS) in their marketing campaigns, you better watch out. Smart CEOs around the world are having a new book for their bedtime reading.

Competitive theories by Michael Porter and Richard D'Aveni -- two management gurus I celebrated and wrote much about in the past -- may have to take a back seat. Someone just said beating competitors now simply means making them irrelevant by creating new demand and new relationship with customers in unchattered waters while keeping differentiation AND (not or) low-cost advantage intact.

"Don’t Compete with Rivals. Make Them Irrelevant." Hear the new mantra?

I recently acquired the book on BOS and it inspired me to write about it in my fortnightly column in Malaysian Business (April 16 edition). Read my column and perhaps you would like to get a copy for yourself, too. It's only 272 pages and easy to digest.

BOS_Cover.jpg

The book is titled: BLUE OCEAN STRATEGY: How to Create Uncontested Market Space and Make the Competition Irrelevant’ (Harvard Business School Press, 2005), co-authored by BCG/INSEAD scholars W. Chan Kim and Renée Mauborgne (picture below). It deals with new approaches to tackling competition in the market place.

BOS_KimMauborgne_450x.jpg

In the book, the authors use the ocean as a metaphor to describe the competitive space in which an organisation chooses to swim. Red oceans refer to the frequently accessed market spaces where the products are well-defined, competitors are known and competition is based on price, product quality and service. In other words, red oceans are an old paradigm that represents all the industries in existence today.

In contrast, the blue oceans denote an environment where products are not yet well-defined, competitors are not structured and the market is relatively unknown. Companies that sail in the blue oceans are those adept at beating the competition by focussing on developing compelling value innovations that create uncontested market space.

BOS_Summary.gif

Kim and Mauborgne’s book is based on a study of 150 strategic moves that spanned more than a hundred years (1880 – 2000) and thirty industries. They argue that tomorrow’s leading companies will succeed not by battling competitors, but by making strategic moves which they call “value innovation”. It’s a grand design to create powerful leaps in value for both the firm and its buyers, unleashing new demand, thus rendering rivals obsolete.

I gave some live examples of the BOS in my column, but you should at least read Kim and Mauborgne's summary if you are short of time.

I believe DiGi is already practising BOS without making a huha out of it.

And by selling MV Agusta SpA at €1 -- that's essentially bankrupting the bankrupted -- Khazanah and Mohammed Azlan Hashim may have drowned Proton in the red ocean for good and for bad.

That's dying in vain -- mati katak -- in actuality.

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Comments

The strategies is not new to us. Hope the content will be. Heading to MPH now... :D

yes the book is easy to digest but too dry for me. I am still stuck in Part Two: Formulating Blue Ocean Strategy eventhough I bought this book last year during the Clayton Christensen's visit to Malaysia last year.

for those not worn out by life


http://tinyurl.com/bqbat

I am amazed that you all praise for all these "comtemporary management guru". All their ideas are for armchair reading that do not involve any critical thinking. Their thoeries are baseless and are hypes that similar to Gartner whitpaper

JEFF OOI says: Good start. Now, you can begin your first chapter to debunk the BOS authors by stating why you think their theories -- which their put forth after analysing 100 years of case studies in over 30 industries -- are "baseless and all hypes similar to Gartner whitepapers". I will set aside RM10,000 to help you publish your book. [ AND ALL SCREENSHOTS READERS STAND TESTIMONY TO MY rm10k PELDGE! ] You will have my confidence if you can show me the receipt that you have bought and read BOS textbook, or haved practised some of the BOS theories and confirmed that they are baseless and hyped. Or else, typical of my fellow Malaysians, TALK IS CHEAP.

Try to compare with Peter Drucker and Alvin Toffer

Each and every marketing practitioner has its own theories. It needs to evolve with time and what is right yesterday may not be applicable today and in the future. I guess BOS could be apt as to what is happening in the competitive environment today. I wouldn't call it a paradigm shift. Merely tweaks to the way we launch an offensive in today's market place. Or in this case, a more novel approach.

However, like all successful marketing strategies it is mostly about implementation. A plan is only as good as the people who executes it. I guess we can draw parallels to this with our Govt's policies. More often than not, the guiding principles are brilliant and its intentions noble. However when it comes to implementation, that's when it starts to become all awry. The result? Most people suffer with a chosen few laughing in glee to the bank, happily having lined their huge pockets from the cookie jar filled with taxpayers' money. Alas. I'm wondering as to whether this malaise will ever, ever be eradicated from the way Malaysia is run.

Pentiumboy, have a heart. These contemporary management gurus are trying to make a living too. So if they don't practise what they preach, they would be mere hypocrites ;)

Samarium, you are right , may be I am too bashing.

However , I can not tolearate all these sordid management jargon " Ocean strategy" ? . It is only purely observation , not management theory.

The best part is that they have a lot of followers reading and talking of these old tricks. Remember there was a time that MPH stacked up tons of Rich daddy, poor daddy books and sold like hot cakes

To me all these management guru are equivalent to wheater reports from Kementerian Kaji Cuaca, Never Accurate, it just prediction

" Make the competition irrelavant" - what a bombastic word.

Tell me practically how to do it.

I think we should not indulge in all these jargon hype. After all management is just a daily practical, common sense work.

I have never come across that Peter Drucker invented bombastic management jargon.

wasn't it Tom Peters who said that Honda will never make it as a car manufacturer. Buy books written be founders of succesful businesses, not books written by management gurus trying to make big bucks.

Pak Lah is going to hire Harvard Uniersity consultant to help to reduce bureacracy.

The name Havard sound canggih , that is why "management guru" has to be asscociated with Harvard XXX to market them

Is there any local company already registred as Harvard Jaya Sdn Bhd ?

jeff, you said : which their put forth after analysing 100 years of case studies in over 30 industries"

Analyzing even million years of case stidies do not resulted in theory , it is still pure a self-apparent observations about business. I glanced through this book in a bookstore in KL. These books leave me unsatisfied because not because I don't grasp the concepts, but because the concepts are so oversimplified that they have lost almost all connection to reality.

Only academics could have written such a thing. Blue Ocean Strategy acts as if "wishing makes it so," all we have to do is to find an uncontested market space and all the hard work of marketing just goes away.

Sound realistic ? Then name me one unconetested market space.

JEFF OOI says: Talk is cheap. My RM10,000 pledge on you still stands. I'm putting money where my mouth is.

I will not sink my money into the ocean.

It has some interesting observations, but is light on content. It lacks specific advice and has few tactics you can actually use. Though it's good for people who just want to know things but don't want to do anything about it.

I stop here

JEFF OOI says: Don't run away. You are the one who gave a sermon to deride the authors. I believe you are professional enough to support your argument with convincing counter-thesis. We Malaysians should have self-esteem. If we challenge people's ideas, we must substantiate ourselves with strong rationale. I don't want people like you to disgrace Malaysians as being TALK IS CHEAP. I want you to be "First World' in the true sense that we can argue our case rationally and professionally. Since you have challenged authors/scholars who come from academic and consulting fields, I want to make sure your conviction to disavow BOS stand the test of time and wisdom. Hence my RM10,000 pledge on you still stays. Live up to the challenge, my dear Malaysian. Don't run away with tails in between your lower limbs after you have cast the first stone.

Pentiumboy, you are one heavily laced with skepticism, which is good cos I'm always game for both sides of the coin when it comes to debates, analysis and ways of looking at issues. Whether I'm convinced or not, that is a different prospect altogether.

I reckon that what BOS is trying to do is to instill concepts and evoke different ways of approaching the market. It is not trying to tell anyone what to do in any specific details. Instead, it is an attempt to psyche marketeers up to adopt an 'out of the box' mentality. After all, there are many ways to skin the cat. Furthermore, specific tactics may not be applicable to selected industries. So why even try?

Your definition of 'uncontested market space' needs to be be broader. BOS is speaking of 'uncontested market space' here as a concept rather than as a entity. They are talking about identification of unmet needs. They may also be referring to re-examining what are needs these days. Needs also evolve with time; today's needs are different from yesterday's needs. BOS suggests that one goes back to basics and ask again, 'what are today's and future needs?'. Redefine needs. Needs can also be created. So these are what I interprete to be 'uncontested market space'. When you adopt this definition you will see things in a totally different light.

And that's why it says, 'CREATE uncontested market space'. You missed out a most important word there. So it's not about looking for existing markets where competition is non-existent or few.

Obviously, a book that costs RM 119.80 would not teach you everything from A to Z.

We purchased and read the book in order to get ideas, to get inspired by author and the content of the book.

Although this book is not perfect, but we should give credits to Jeff for recommending good book.

If this book could give you all the detailed advices, practical step-by-steps and no-brainer instructions on how to build your blue ocean strategy, it could probably cost you RM 11980.00 lah...

Jeff, I will contribute RM10... :)

Samarium, I think you also need to justify what you say. Go read the book first. Talk is cheap.

Jeffdaman, I believe that I have done enough justice to my statements. So I don't think I need to substantiate them any further. If you feel otherwise, too bad. I'm not here to convince anyone. Just thinking aloud.

JEFF OOI says: I can whole-heartedly accept dissenting views. But I will not tolerate a culture where you hadn't read a single chapter of BOS the book -- or any book for that matter -- and yet you can klentong to run it down as being"baseless and hyped'> Malaysians should be better than this or else our future generation will also be finished in their hands.Absolutely Third World.

I put my personal comment to this blog on good faith. I do not attack anyone persoanlly.

You said : Don't run away with tails in between your lower limbs". Dear Jeff , watch you mouth , please do NOT use vulgar and unpleasant words

JEFF OOI says: TALK IS CHEAP. I am throwing you a challenge to get your anti-thesis of BOS published with my RM10,000 pledge on your head. Show us your professional rebuttal, chapter by chapter, to illustrate your basis for calling the Blue Ocean Strategy theory as -- in your own words -- "baseless and hyped". I can assure you I won't run away from my pledge with tail in between my legs. But would you show us your rationale, and acemedic argument, to substantiate what you have alleged BOS -- the book and its authors -- of? Rise up to the occassion, my fellow Malaysian! I said" TALK IS CHEAP. Prove me wrong.

Er, vulgarities and unpleasant words, pentiumboy? I certainly don't see any of that in Jeff's comments. I'm not defending him, but then are you misinterpreting the words, 'lower limb'? I am sure he is referring to your legs and certainly not the appendage which you are most probably thinking about ;)

a lot of books out there are actually telling you things you already know, but didn't bother to take note. this book is one of them, and it's not one of them. half half lah... lol..

make your competitors irrelevant..i think this idea is fantastic...create a market for yourself...i think a lot of businessman have done this ages ago...

JEFF OOI says: The authors alluded to precisely that. Hence, they declared their study was based on business cases stretching from 1890 to 2000, seen across over 30 industries. NEXT!

when there are no motorbike, a certain Mr. Loh jumped into the Blue Ocean and brought in Honda Cub.

when everyone is going to the cold country for holiday, a certain Mr. Lim create the cold getaway resort nearer to KL called Genting Highlands...

when no one cares or know about the limitless ability of computer, a certain Mr Gates create an industry all to himself...

this Blue Ocean concept has been around for ages...those pioneers businessman during the earlier times of Malaya...as long as the persevere..they created a market for themselves..

it's pretty hard to do it now...but it is not impossible..and it must be something really unique...I wouldn't make the error of "everything that can be invented, has been invented"..as said by a certain someone in decades ago...lol..

it's the same as a story that I've heard some time ago..

this shoemaker send one of his staff to Africa for a market survey.

this staff came back after one month, and tell the boss.."no market. the ppl there don't wear shoes!!!"

he was fired right away!

becos the boss knew, if the ppl there don't wear shoes, he will go there and tell them what is shoes, and teach them to wear shoes.

thanks jeff for recommending this book. hehe...cos I really like the idea of "making your competitors irrelevant.."..

will visit Borders soon... ;)

JEFF OOI says: The authors alluded to precisely that. Hence, they declared their study was based on business cases stretching from 1890 to 2000, seen across over 30 industries. NEXT!

JEFF OOI says: Have we lost it on you? Don't pick a fight with me. That's senseless. Go pick a fight with your conviction that BOS the book and its authors are -- as you claimed, "baseless and hyped". Share it with us.

Jeff, please don't repeat this statement. Repeating this statement does not reinforce that the survey done over 30 industries is scientifically proven. It is merely a self-apparent observation. Observation can not be concluded as framework or theory.

Please give us another better arguement and justification to prove that you have read the book.

JEFF OOI says: You are picking a senselss fight. The onus is on you -- the person who cast the first stone -- to prove BOS is as "baseless and hyped" and alleged. Don't run away from your convicted opinion.

By the way , I don't accept online betting , please keep you RM 10,00 or donate to World Wildlife Fund.

JEFF OOI says: OK. TALK IS really CHEAP huh? Don't run away with your tail stuck in between your lower limps.


hmm... talk is really cheap here. Keep talking and keep avoiding...

The problem is, when too many people claims that they are thinking 'aloud', they are actually also talking cheap!

Whatever tickles your fancy, jeffdaman. I ain't about to be degraded myself, going into what I foresee to be utterly useless banter with you. To each his own.

many major consultancy firm are advocating the red and blue ocean strategy.

Well, many of us had heard about this and that strategy ect. May i ask, how many of us are practicing it actively?

u will be surprise after reading this book, you will be practicing the strategy unconsciously.

And you will be the one taking credit for all the success and not JEFF.

JEFF OOI says: No, I won't and I shouldn't take any credit. I just share what I see and what I read, just like all my blog topics. But to condemn a book, its theories and its merits as being"baseless and hyped" WITHOUT reading it, is blind. Malaysia doesn't deserve such blinds to be a "First World" country.


some one previously wrote that "Analyzing even million years of case stidies do not resulted in theory".

In actual fact, for Qualitative research especially, a bucket approach is used where the first step is to observe some parts of the real world, then form and test hypotheses. From these hypotheses, facts can be established and laws can be derived. Finally theory is developed to explain the phenomenon observed in real world.

Another method of is to start with a theory, then using the theory we make predictions about the real world, these predictions lead to observations, laws and new hypotheses to be tested. Then the theory is revised based on the hypotheses tested. This approach of research is called searchlight approach or quantitative research.

So to say that analysing millions of years of case studies do not result in theory is talked cock.

There is a common trend here when ever someone fails to justify his/her remarks. I notice there are 'some' people always like to use this trick. Instead of running away with tail between legs, they would try to cover up... the person will say: I ain't about to be degraded myself blah blah blah... or I do do online betting blah blah blah...

Talk is always cheap in Malaysia.

There's no need to prove anything to you, jeffdaman. In the very first place who do you think you are? So go ask someone else ask to scratch your itch. If this is what drives your libido and how you derive your kicks, so be it. You have your own views of events and I have mine. If you can't accept what I say, I ain't gonna lose any sleep over it. Enough said.

Precisely Samarium! We are talking bout the books, aren't you? And why you have to be so degrading at the first place?

er.. lesson 1 - read the book first.. then give comments.. don't jump into the conclusion without looking at the details & facts given.. me heading my way to MPH now.. read the book thoroughly..then if found something baru komen

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