Summary of “Rethinking Competitive Strategy: Embracing Blue Ocean Opportunities” by Abigail King (2020)

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Introduction

Abigail King’s “Rethinking Competitive Strategy: Embracing Blue Ocean Opportunities” delves into the concept of creating uncontested market space to make competition irrelevant, a strategy initially popularized by W. Chan Kim and Renée Mauborgne. King expands on this by providing practical insights, frameworks, and examples. The book is laden with real-world applications and actionable steps that can help businesses pivot from saturated markets into blue oceans where unique opportunities abound.

Chapter 1: Understanding the Red vs. Blue Ocean

Key Point: The red ocean represents all industries in existence today—the known market space where companies try to outperform rivals to grab a greater share of existing demand. In contrast, the blue ocean signifies the creation of new industries or the redefinition of existing boundaries, where competition is irrelevant because rules of the game are yet to be set.
Actionable Step: Conduct an audit of your current market environment to identify whether your business is swimming in red oceans. Look for industries with intense competition, price wars, and shrinking profit margins.
Example: King cites the case of Cirque du Soleil, which redefined the circus industry by blending it with theatre, creating a unique market space that attracted an affluent customer base willing to pay premium prices.

Chapter 2: Shifting Mindsets for Blue Ocean Strategy

Key Point: The transition from a red to a blue ocean is not just about market conditions but also involves a shift in mindset. Companies should move away from the competitive mind frame and focus on value innovation—offering leap in value for both the company and its customers.
Actionable Step: Foster an organizational culture that embraces creativity and divergent thinking. Encourage team members to explore beyond the traditional boundaries of the industry.
Example: Highlighting Nintendo’s Wii, King discusses how the company shifted from targeting hardcore gamers to capturing the casual gaming market by focusing on family entertainment, redefining the attributes of what a gaming console could be.

Chapter 3: Tools for Identifying Blue Oceans

Key Point: King elaborates on specific tools businesses can use to uncover blue ocean opportunities, such as the Strategy Canvas and the Four Actions Framework.
Actionable Step: Use the Strategy Canvas to map out your industry’s current competitive landscape and identify key factors where your competitors are investing. Then apply the Four Actions Framework:
Reduce factors below industry standards.
Eliminate factors that the industry takes for granted.
Raise factors above industry standards.
Create factors that the industry has never offered.
Example: In the book, the wine company Yellow Tail is examined for how it used these tools to break away from the overcrowded, traditional wine market by simplifying the wine choice, targeting non-wine drinkers, and emphasizing fun rather than wine expertise.

Chapter 4: Implementation of Blue Ocean Strategy

Key Point: Successful implementation requires systematic planning and commitment across the organization. It involves strategic alignment, robust execution plans, and continuous monitoring.
Actionable Step: Develop a visual strategy fair where various teams present visualized strategies and gather feedback. This not only fine-tunes the strategy but also fosters buy-in across the organization.
Example: King examines the automotive startup, Tesla, focusing on how it managed to align its entire business model—from product development to marketing and sales—around the blue ocean concept of creating electric cars that appealed not just to environmentalists, but also affluent tech-savvy consumers.

Chapter 5: Overcoming Organizational Hurdles

Key Point: Transitioning to a blue ocean can be fraught with challenges, including cognitive, resource, motivational, and political hurdles within the organization.
Actionable Step: Appoint “tipping point leaders” who can guide the organization through change by addressing these hurdles directly. Use fair process leadership to ensure transparent, inclusive decision-making.
Example: King points to how Apple refocused its culture under Steve Jobs by streamlining operations and encouraging innovative thinking, which culminated in breakthrough products like the iPhone that opened new markets.

Chapter 6: Demand Creation

Key Point: Rather than focusing on existing customers, blue ocean strategy encourages companies to think about non-customers—people who are presently not in the market but could be triggered to enter.
Actionable Step: Create a ‘Buyer Utility Map’ to identify the key utility levers across the buyer’s experience cycle. This helps to uncover hidden pain points or opportunities to convert non-customers.
Example: King’s research highlights how minute clinics such as CVS Health’s MinuteClinic tapped into non-customers by providing easy access to basic healthcare services, targeting people who avoided traditional healthcare due to cost or time constraints.

Chapter 7: Sustainable Strategy

Key Point: It’s necessary to continuously revisit and refine your strategy to sustain your blue ocean. The market changes, and so must your strategic approach to maintain the created value.
Actionable Step: Schedule regular strategy reviews and be ready to pivot based on market feedback and evolving customer needs. Employ a cycle of Observe-Orient-Decide-Act (OODA loop) to adapt quickly.
Example: King refers to Airbnb’s evolution as a platform that continuously adds new services and features based on user feedback to create more value and remain competitive.

Conclusion

Abigail King’s “Rethinking Competitive Strategy” provides a comprehensive guide for businesses looking to break free from brutal competition and discover new growth opportunities. The book offers rich, practical content with actionable steps complemented by illustrative real-world examples. By adopting these principles, companies can create their own blue oceans and thrive in uncontested market spaces.

By shifting from traditional competitive strategies to innovative approaches that seek to redefine market boundaries, organizations can achieve significant growth while rendering the competition irrelevant. This not only leads to improved profitability but also fosters a progressive and creative organizational culture geared for sustaining long-term success.

Key Takeaways and Actions

Understanding the Market Space:
Action: Audit current competition levels.
Example: Cirque du Soleil redefined the circus.
Shifting Mindsets:
Action: Embrace creativity in organizational culture.
Example: Nintendo’s strategy with the Wii.
Identifying Blue Oceans:
Action: Use Strategy Canvas and Four Actions Framework.
Example: Yellow Tail’s approach to wine marketing.
Implementation:
Action: Develop visual strategy fairs.
Example: Tesla’s alignment of business model.
Overcoming Hurdles:
Action: Appoint tipping point leaders.
Example: Apple’s simplification under Steve Jobs.
Demand Creation:
Action: Create Buyer Utility Maps.
Example: CVS Health’s MinuteClinic.
Sustainability:
Action: Regular strategy reviews.
Example: Airbnb’s iterative improvements.

By integrating these strategies, businesses can not only survive but thrive, forging new paths in less contested, high-growth territories.

Business Strategy Blue Ocean Strategy