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12 December 2005

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TRU Group

¥ The book titled “Blue Ocean Strategy” is not helpful to management – don’t buy it and if you already have it dump it

¥ Management can and should be visionary in formulating strategy. But, contrary to the approach of Ocean Strategy, should do so by thinking about market environment shifts, how these could impact customer sets, and whether those customer sets are the ones you wish to serve

¥ Also contrary to Ocean Strategy, production cost reduction is best seen as an operational or resource issue – a barrier to be overcome not an end in itself as a tool of strategy. Resources are easier to acquire than customers. Production methods should match volume to minimize costs

¥ In your strategizing do not take advice on strategy [or any other mission critical function] from management who are not qualified to give advice and do not treat strategy formulation as an exercise in management team compromise – contrary to the Ocean Strategy method

¥ This book should be at the bottom of the list for reading by strategy professionals for Ocean Strategy, Red or Blue, belongs in the Dead Sea!

¥ Harvard University professors should read it for they should wonder what they were thinking allowing Harvard University Press to publish it.

TRU prepared this review as a service to our clients after a client came to TRU with what they said was a Blue Ocean Strategy with no competitors. On researching the strategy TRU found the client had more than a dozen competitors and was far behind the curve on customer, product and market development. Blue
TRU Group Inc - Activating Your StrategicMindset

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