Value innovation is the cornerstone of blue ocean strategy. We call it value innovation because instead of focusing on beating the competition, you f… - W. Chan Kim

Every company wants one, yet few companies have one: a compelling strategy.

The document normally kicks off with a lengthy description of current industry conditions and the competitive situation. Next is a discussion of how to increase market share, capture new segments, or cut costs, followed by an outline of numerous goals and initiatives. A full budget is almost invariably attached, as are lavish graphs and a surfeit of spreadsheets. The process usually culminates in the preparation of a large document culled from a mishmash of data provided by people from various parts of the organization who often have conflicting agendas... Executives are paralyzed by the muddle. Few employees deep down in the company even know what the strategy is.

Value innovation requires companies to orient the whole system toward achieving a leap in value for both buyers. The simultaneous pursuit of differentiation and low cost.