Michael E. Porter Quotes

While good strategy content is based on a compelling value proposition for buyers with a robust profit proposition for the organization, sustainable strategy execution is based largely on a motivating-people proposition.

Value innovation requires companies to orient the whole system toward achieving a leap in value for both buyers and themselves.

Blue oceans are right next to you in every industry.

Blue ocean shift is a systematic process to move your organization from cutthroat markets with bloody competition — what we think of as red oceans full of sharks — to wide-open blue oceans, or new markets devoid of competition, in a way that brings your people along.

Simply put, there is no substitute for meeting and listening to dissatisfied customers directly.

Blue ocean strategy is not about being first to market. Rather it’s about being first to get it right by linking innovation to value.

A company should never outsource its eyes. There is simply no substitute for seeing for yourself. Great artists don’t paint from other people’s descriptions or even from photographs; they like to see the subject for themselves. The same is true for great strategists.

Value innovation is the cornerstone of blue ocean strategy. We call it value innovation because instead of focusing on beating the competition, you focus on making the competition irrelevant by creating a leap in value for buyers and your company, thereby opening up new and uncontested market space. Value innovation places equal emphasis on value.

Value innovation is the cornerstone of blue ocean strategy. We call it value innovation because instead of focusing on beating the competition, you focus on making the competition irrelevant by creating a leap in value for buyers and your company, thereby opening up new and uncontested market space.

To reach your organization’s tipping point and execute blue ocean strategy, you must alert employees to the need for a strategic shift and identify how it can be achieved with limited resources. For a new strategy to become a movement, people must not only recognize what needs to be done, but they must also act on that insight in a sustained and meaningful way.

senior managers’ goal here should be to manage their portfolio of businesses to wisely balance between profitable growth and cash flow at a given point in time.

We call this atomization after Einstein’s reflection that if you deconstruct any challenge into its basic components, or atoms, and focus on solving them one at a time, even the largest challenge shifts from being overwhelming to being intellectually and psychologically solvable.

To tip the cognitive hurdle fast, tipping point leaders such as Bratton zoom in on the act of disproportionate influence: making people see and experience harsh reality firsthand.

As shown in figure 2-2, to break the trade-off between differentiation and low cost and to create a new value curve, there are four key questions to challenge an industry’s strategic logic and business model: Which of the factors that the industry takes for granted should be eliminated? Which factors should be reduced well below the industry’s standard? Which factors should be raised well above the industry’s standard? Which factors should be created that the industry has never offered?

Competition is only good up to a point. When supply exceeds demand