W. Chan Kim is the co-author of the business best-selling book Blue Ocean Strategy, which has become a classic in the modern era of digital platforms. Professor of W. Chan Kim theorized the concept of value innovation and how new business practices are able to break down the trade-off between cost and value. He’s a Professor of Strategy and Management at INSEAD.
A blue ocean is a strategy where the boundaries of existing markets are redefined, and new uncontested markets are created. At its core, there is value innovation, for which uncontested markets are created, where competition is made irrelevant. And the cost-value trade-off is broken. Thus, companies following a blue ocean strategy offer much more value at a lower cost for the end customers.
Read also: Blue Ocean Strategy, Four Corners Analysis