Renée Mauborgne, an economics professor at INSEAD and co-author of 'Blue Ocean Strategy', discusses innovative business strategies that encourage entrepreneurs to create new market spaces instead of competing for dominance in crowded areas. She highlights examples like Cirque du Soleil and Tesla, advocating for unique value delivery. The conversation also touches on non-disruptive innovation as a solution to job displacement in the age of AI, aiming for a balance between profit goals and societal impact.
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insights INSIGHT
Red Ocean vs. Blue Ocean
Red oceans represent existing, competitive industries where companies fight for market share.
Blue oceans are untapped markets where businesses can create new demand without direct competition.
question_answer ANECDOTE
Cirque du Soleil: A Blue Ocean Example
Cirque du Soleil reinvented the declining circus industry by offering a unique, high-value experience.
They didn't benchmark competitors, instead creating a new market space and raising the price point.
question_answer ANECDOTE
Tesla's Blue Ocean Strategy
Tesla created a blue ocean by focusing on electric vehicles when established automakers weren't.
They prioritized dropping costs and expanding market reach without compromising style or quality.
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Innovate and Achieve Growth Without Displacing Industries, Companies, or Jobs
W. Chan Kim
Renée Mauborgne
This book challenges the conventional wisdom that disruption is the only path to innovation and growth. Kim and Mauborgne argue that disruption, while powerful, is often destructive, leading to job displacement and industry upheaval. They introduce the concept of 'nondisruptive creation,' which allows companies to grow and innovate without the negative consequences of disruption. The book provides practical frameworks and real-world examples across various sectors, showing how this approach can benefit both business and society. It emphasizes the importance of balancing business growth with social good and offers a new perspective on innovation strategies[1][2][5].
Blue Ocean Shift
Beyond Competing - Proven Steps to Inspire Confidence and Seize New Growth
W. Chan Kim
Renée Mauborgne
Blue Ocean Shift provides a step-by-step guide for organizations to transition from crowded, competitive markets (red oceans) to new, uncontested market spaces (blue oceans). The book offers practical tools and insights from human psychology to inspire confidence and drive growth. It includes case studies across various sectors, demonstrating how leaders can apply these strategies to achieve market creation and growth.
Blue Ocean Strategy
Renee Mauborgne
W. Chan Kim
Blue Ocean Strategy challenges traditional competitive strategies by advocating for the creation of new, uncontested market spaces. The authors, W. Chan Kim and Renée Mauborgne, argue that companies should focus on innovation to create 'blue oceans' of new demand, rather than competing in 'red oceans' of existing markets. The book provides a systematic approach and tools for successfully formulating and executing blue ocean strategies, including the strategy canvas and the six principles of blue ocean strategy. It highlights successful examples such as Cirque du Soleil and low-cost airlines, and offers guidance on overcoming organizational hurdles and aligning value, profit, and people propositions.
Best-selling author and economics professor Renée Mauborgne thinks that too many entrepreneurs focus on the wrong things—consumed with making their companies outperform one another as they fight for a greater share of a crowded market space. But what if entrepreneurs focused on creating new markets instead of fighting over old ones?
This week on How I Built This Lab, Renée shares insights from her Blue Ocean Strategy series to help founders crack open new opportunities. Plus, what is non-disruptive innovation and can it offset job displacement in the age of AI?
This episode was produced by Kerry Thompson with music by Ramtin Arablouei.
It was edited by John Isabella with research help from Sam Paulson. Our audio engineer was Neal Rauch.
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