Asestablishedmarketsbecomelessprofitable,companiesincreasinglyneedtofindwaystocreateandcapturenewmarkets.Despitemuchinvestmentandcommitment,mostfirmsstruggletodothis.What,exactly,isgettingintheirway?World-renownedprofessorsW.ChanKimandReneeMauborgne,theauthorsofthebest-sellingbookBlueOceanStrategyhavespentoveradecadeexploringthatquestion.Theyhaveseenthatthetroubleliesinmanagers’mentalmodels--ingrainedassumptionsandtheoriesaboutthewaytheworldworks.Thoughthesemodelsmayworkperfectlywellinmaturemarkets,theyundermineexecutives’attemptstodiscoveruncontestednewspaceswithamplepotential(blueoceans)andkeepcompaniesfirmlyanchoredinexistingspaceswherecompetitionisbloody(redoceans).InthisboundversionoftheirbestsellingHarvardBusinessReviewclassicarticle,theydescribehowtobreakfreeoftheseredoceantraps.Todothat,managersneedto:(1)Focusonattractingnewcustomers,notpleasingcurrentcustomers;(2)Worrylessaboutsegmentationandmoreaboutwhatdifferentsegmentshaveincommon;(3)Understandthatmarketcreationisnotsynonymouswitheithertechnologicalinnovationorcreativedestruction;and(3)Stopfocusingonpremiumversuslow-coststrategies.TheHarvardBusinessReviewClassicsseriesoffersyoutheopportunitytomakeseminalHarvardBusinessReviewarticlesapartofyourpermanentmanagementlibrary.Eachhighlyreadablevolumecontainsagroundbreakingideathatcontinuestoshapebestpracticesandinspirecountlessmanagersaroundtheworld--andwillhaveadirectimpactonyoutodayandforyearstocome.
