Blue Ocean Strategy: Define Your Competition Into Irrelevance

One of the core principles in Blue Ocean Strategy is to not accept market boundaries as they are. This idea is simple in theory but many either don't understand it or can't embrace it.

Let's use a metaphor all geeks understand: the Kobayashi Maru strategy. Summarizing for any of the well-groomed MBA types sneaking in here: Captain Kirk was in training at Star Fleet Academy. He was in the simulator and received a distress call from the ship Kobayashi Maru. Kirk goes to rescue the ship and is ambushed.

Before Kirk nobody had won the Kobayashi Maru simulation. Why? Because it was programmed to be unwinnable. It was a training exercise to show that some situations must be avoided, or that defeat is sometimes unavoidable. Kirk wins though, rescuing the ship and escaping the ambush. How? Having done his research and realizing what he would be up against he snuck in the night before and reprogrammed the simulator.

Blue Ocean Strategy, at its core, is about reprogramming the simulator; rewriting the rules to suit you. That's what Being Blue is all about.

I'm happy to discuss the steps to reprogram the simulator, to show you how to sneak in, and even to slip you the simulator API's. But, in the end, you have to remember that it's up to you -- the business/product developer -- to take the first steps and a) realize the Kobayashi Maru exercise is rigged, b) decide that "traditional" red ocean means of competition will never work, and finally to c) sneak in and reprogram the simulator before the exercise begins.

Redefine the market boundaries then build a business within these new boundaries. Be Kirk, or be clobbered.