Disruption and Blue Ocean Strategy

Some talk of disruption as the objective of the Blue Ocean Strategy. In their new book W. Chan Kim and Renée Mauborgne show that Blue Ocean Strategy goes beyond the notion of disruption of the Austrian economist Schumpeter who linked the creation of new markets to destruction. This destruction originates from a new technology that replaces a historical technology, digital photography being a good example.

W. Chan Kim and Renée Mauborgne consider three movements that generate profitable growth:

- Offering an innovative solution to an industry issue, a good example is the CD replacing the cassette and then replaced by the MP3 player;

- Identifying and resolving a new issue or seizing an opportunity; e.g. the ringtone industry ;

- Redefining and resolving an industry issue; SEB with the Actifry went from improving the fryer to how to produce a better fry.

In each of these movements there is a focus on increasing value for the market, not on technological invention.

Author: Marc Beauvois-Coladon