W. Chan Kim's blue ocean strategy and market creation theory

Chan Kim

W. Chan Kim makes it a point to totally upend the system and the belief propagated by that system that states, in essence, that in order for a company to be successful, it must create and fill its own market, not emulate other companies that are seemingly quite successful according to industry merits.

This is a revolutionary line of thinking since most of the books written, speeches given and guru's questioned center on the fact that the way to success is to watch someone, or something, that is successful and then do what they do.

Comparing Chan's method of success to the successful methods as touted in various textbooks, the reader can find the exact opposite method(s) being touted. Many marketing strategies are extrapolated as being the sure way to success by stating that the observer must implement (as closely as possible) the same formulas other companies have followed on their road to fame and fortune.

Chan says, "There is no such thing as a permanently attractive industry or a permanently attractive company." (Kim 2006-page 19) Kim says that management must create new market spaces, and call such a strategy "Blue Ocean." Ironically, what he also states, is that the 'red ocean' is one that follows the implementation of 'blue ocean' and it means that the market has become saturated with an abundance of product.

The article was a good article in that it forced the reader to rethink how a successful company might look in the future. It was also good in that it allowed the success oriented manager to expand upon the manager's role.

The manager's role, as stated by Kim, is not necessarily to raise prices, but rather to focus on the big picture. If the manager is successful in that, the manager can also be the person who will create new demand for the product. Kim is all about creating new product, which will create new demand.

Kim left out a couple of interesting, and potentially conflicting items that he could have covered, and quite easily. Chan skipped the fact that (currently) technology is so great and information so instantaneously available that the experts who tout different methods of being successful, could ultimately end up imitating Kim's methods.