The second part describes the four principles of blue ocean strategy formulation.

By creating an entirely new product or service, a company can create their own market through differentiation from the competition.

Create: This prompts companies to be innovative with their products.

Therefore, it can be reduced without completely eliminating it.

Reduce: This questions which areas of a company’s product or service are not entirely necessary but play a significant role in your industry, for example, the cost of manufacturing a certain material for a product could be reduced.

Eliminate: This questions which areas of a company or industry could be completely eliminated to reduce costs and to create an entirely new market.

Raise: This questions which factors must be raised within an industry in terms of product, pricing or service standards.

The four actions framework consists of the following: The four actions framework aids in eliminating the trade-off between differentiation and low cost within a company.

The first part presents key concepts of blue ocean strategy, including Value Innovation – the simultaneous pursuit of differentiation and low cost – and key analytical tools and frameworks such as the strategy canvas and the four actions framework.

An expanded edition of the book was published in 2015, while two sequels entitled Blue Ocean Shift and Beyond Disruption are published in 20, respectively.

The book presents analytical frameworks and tools to foster an organization's ability to systematically create and capture 'blue oceans'-unexplored new market areas. They assert that these strategic moves create a leap in value for the company, its buyers, and its employees while unlocking new demand and making the competition irrelevant. Chan Kim and Renée Mauborgne, professors at INSEAD, and the name of the marketing theory detailed on the book.

658.8/02 22, 658.8/02 23 (expanded edition)īlue Ocean Strategy is a book published in 2004 written by W.

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