Mauborgne: Strategy Should Focus on Creating New Markets, Not Just Competing
Renée Mauborgne · Less competition, more creation with Renée Mauborgne · Apr 4, 2024 · at 4:27
Renée Mauborgne is an INSEAD professor and co-author of Blue Ocean Strategy. She explains the core distinction between traditional competitive strategy and market-creating strategy to Guy Raz.
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“If you look at what strategy historically has always been, it's been about how do you compete, how do you analyze an existing industry, benchmark the competition within it, and position yourself in that industry in order to succeed. So that was the one half, and we call that market competing strategy, and because that existing industry was so intense, there was so many margin pressures, we started to call that the red ocean of bloody competition. And in contrast, we saw some companies, they weren't competing in those red oceans. They were creating their own markets. They were breaking and redefining the boundaries. And those, in those industries, there was no competition. It was wide open and untainted. And that became what we call the blue ocean strategy. So we saw there was those two universes, but most companies effort and energy was all in the competing. And we asked the question, why, why should strategy only be competing when the other half of strategy is also about creating?”
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