Exams and graduation ceremonies are already behind you, and that means that we gained some free time to read the new recommended Book of the Month!
For this summer reading while lying near the sea we propose to you one of the classic books in strategic management: Blue Ocean Strategy. How to Create Uncontested Market Space and Make the Competition Irrelevant — by W. Chan Kim and Renée A. Mauborgne, professors of strategy and co-directors of the INSEAD Blue Ocean Strategy Institute in Fontainebleau, France.
Its core idea is that companies do not necessarily have to beat their competitors in existing markets. Instead of making a product «slightly better» or «slightly cheaper», one needs to change the rules of the game and offer customers fundamentally new value. Moreover, innovation does not necessarily mean new technology; it can be a new way of combining price, product, service, and business model.
We especially recommend to read the final part of the book, where on the example of New-York City police renovation in 1994 authors demonstrate how can changes be implemented with lacking resources and dire company situations. Changes occur not because the organization has acquired more resources, but because the leader has identified a few levers that yield the greatest impact. This type of approach is called «The Leadership at the Tipping Point».
«While good strategy content is based on a compelling value proposition for buyers with a robust profit proposition for the organization, sustainable strategy execution is based largely on a motivating-people proposition.» - W. Chan Kim and Renée A. Mauborgne.
Wait for a new recommendation next month and don’t forget to write a comment when you read this book:)
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