Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant

Chapter 10 delves into the topic of dealing with competition and imitation, which will rise up sooner or later to eventually turn blue oceans red. It first explores how companies can set barriers to imitation and then discusses when businesses should start considering breaking into new blue ocean spaces.

Entering blue ocean spaces creates four natural barriers to entry for other companies: The first is the alignment barrier, the second is the cognitive and organizational barrier, the third is the brand barrier, and the fourth is the economic and legal barrier. Alignment barriers occur when a blue ocean company’s strategy on value innovation is difficult to replicate. Cognitive and organizational barriers happen when their production and execution process is so streamlined it is difficult for others to match. Brand barriers usually occur when a product offers unbeatable buyer value, projects an image of reliability, or has a large user base that provides unmatched utility. Finally, economic and legal barriers can be created through purchasing patents or other means to prevent idea theft or imitation.

Businesses who break through blue ocean spaces typically see their monopoly last for a significant amount of time.