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Blue Ocean Strategy

No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the prior permission of the publisher. Requests for permission should be directed to permissions@hbsp.harvard.edu, or mailed to Permissions, Harvard Business School Publishing, 60 Harvard Way, Boston, Massachusetts 02163. | TLFeBOOK FM-Kim.qxd 10/25/04 10:03 AM Page i Blue Ocean Strategy FM-Kim.qxd 10/25/04 10:03 AM Page ii FM-Kim.qxd 10/25/04 10:03 AM Page iii Blue Ocean Strategy ) ) ) ) ( ( ( ( ( How to Create Uncontested Market Space and Make the Competition Irrelevant W. Chan Kim Renée Mauborgne HARVARD BUSINESS SCHOOL PRESS BOSTON, MASSACHUSETTS FM-Kim.qxd 10/25/04 10:03 AM Page iv Copyright 2005 Harvard Business School Publishing Corporation All rights reserved Printed in the United States of America 09 08 07 06 05 54321 No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the prior permission of the publisher. Requests for permission should be directed to permissions@hbsp.harvard.edu, or mailed to Permissions, Harvard Business School Publishing, 60 Harvard Way, Boston, Massachusetts 02163. Library of Congress Cataloging-in-Publication Data Kim, W. Chan. Blue ocean strategy: how to create uncontested market space and make the competition irrelevant / W. Chan Kim, Renée Mauborgne. p. cm. Includes bibliographical references and index. ISBN 1-59139-619-0 (hardcover: alk. paper) 1. New products. 2. Market segmentation. I. Mauborgne, Renée. II. Title. HF5415.153.K53 2005 658.8 02—dc22 2004020857 The paper used in this publication meets the requirements of the American National Standard for Permanence of Paper for Publications and Documents in Libraries and Archives Z39.48–1992 FM-Kim.qxd 10/25/04 10:03 AM Page v To friendship and to our families, who make our worlds more meaningful FM-Kim.qxd 10/25/04 10:03 AM Page vi FM-Kim.qxd 10/25/04 10:03 AM Page vii ) ) ) ) ( ( ( ( Contents Preface ix Acknowledgments xiii Part One: Blue Ocean Strategy 1Creating Blue Oceans 3 2 Analytical Tools and Frameworks 23 Part Two: Formulating Blue Ocean Strategy 3Reconstruct Market Boundaries 47 4Focus on the Big Picture, Not the Numbers 81 .