Blue Ocean Strategy - its Significance and Comparison with Red Ocean Strategy and Porter's Five Forces Model

W Chan Kim and Renee Mauborgne, professors at INSEAD and co-directors of the INSEAD Blue Ocean Strategy Institute, in Fontainebleau, France wrote and published book titled "Blue Ocean Strategy" in 2005 and written by The book has been translated into 43 languages and has sold over 3.5 million copie_s from the time of its publishing. Wall Street Journal, Business Week, and the Amazon.com named the book as a bestseller. The book was designated as one of the "Best Books of 2005" by Fast Company magazine. It also won "The Best Business Book of 2005" Prize at the Frankfurt Book Fair Based on a study of 150 strategic moves spanning more than a hundred years and thirty industries. In their book Kim & Mauborgne argued that companies can succeed not by battling competitors, but rather by creating "blue oceans" of uncontested market space. They proclaimed that these strategic moves create a jump in value for the company, its buyers, and its employees while unlocking new demand and making the competition irrelevant. The book provides with analytical frameworks and tools to substitute an organization'sability to systematically create and capture blue oceans. An extended edition of the book was published in February, 2015. The expanded edition apprises all strategic moves in the book, bringing their stories up to the present, and adds new chapters on achieving strategic orientation and avoiding red ocean traps as well as expanding the discussion on sustainability and renewal. The paper discusses the Blue Ocean Strategy, its significance and compares with Red Ocean Strategy and Porter's Five Forces Model.