Value Innovation

W. Chan Kim and Renée Mauborgne developed the concept of Value Innovation, the cornerstone of market-creating strategy. It is the simultaneous pursuit of differentiation and low cost, creating a leap in value for both buyers and the company. Because value to buyers comes from the offering’s utility minus its price, and because value to the company is generated from the offering’s price minus its cost, value innovation is achieved only when the whole system of utility, price, and cost is aligned.

Cost savings are made by eliminating and reducing the factors an industry competes on.
Buyer value is lifted by raising and creating elements the industry has never offered.

© Kim & Mauborgne. All rights reserved.

Break the value-cost trade-off by answering the following questions:

  • Which of the factors that the industry takes for granted should be eliminated?
  • Which factors should be reduced well below the industry’s standard?
  • What factors should be raised well above the industry’s standard?
  • What factors should be created that the industry has never offered?

Get BLUE OCEAN SHIFT to learn the ins and outs of how to put this tool in practice. Pre-order your copy today and get a great selection of bonuses including three-months free access to Blue Ocean Studio, an online collaborative workspace for applying the blue ocean tools in practice so you can get started today.

For more articles on this tool,
SEARCH THE eLIBRARY

W. Chan Kim and Renée Mauborgne created a comprehensive set of analytic tools and frameworks to create blue oceans of new market space. In their soon-to-be released and much-anticipated new book, BLUE OCEAN SHIFT, Kim and Mauborgne share how to put these practical market-creating tools into practice to move from red to blue oceans and to do so in a way that people own and drive the process.

Brimming with battle-tested lessons and the stories of organizations from around the world that put their ideas into practice, Kim and Mauborgne highlight what works, what doesn’t, the potential pitfalls along the way and how to avoid them to achieve the best results in your organization. Get your copy of BLUE OCEAN SHIFT now, and get all these answers plus so much more including exercise templates you can use to apply the tools in your organization.

All analytic tools © Kim & Mauborgne. All rights reserved.

Don’t just check out the tools. Learn how to put them in practice. Find out what works, what doesn’t, the potential pitfalls along the way and how to avoid them to achieve the best results in your organization. Get your copy of BLUE OCEAN SHIFT now, and get all these answers plus so much more including exercise templates you can use to apply each tool in your organization.

Red Ocean vs. Blue Ocean Strategy
Value Innovation
Visualizing Strategy
Strategy Canvas
Four Actions Framework
ERRC Grid
Six Paths Framework
Pioneer Migrator Settler Map
Three Tiers of Noncustomers
Sequence of Blue Ocean Strategy
Buyer Utility Map
Price Corridor
of the Mass
Four Hurdles to Strategy Execution
Tipping Point Leadership
Fair Process

Sign up now to gain access to
Blue Ocean Strategy tools and frameworks developed by W. Chan Kim and Renée Mauborgne.

Get set to sail towards your blue ocean !