The Business of Creativity

Houchin Consulting PLLC

A little Blue Ocean

Posted on | March 19, 2007 | No Comments

Read the book Blue Ocean Strategy by W. Chan Kim and Renee Mauborgne. (Harvard Business School Press – 2005 – ISBN: 1-59139-619-0).

It’s about innovation – a topic dear to my heart.
In blue oceans, competition is irrelevant because the rules of the game are waiting to be set.

The authors studied buisness launches at 108 companies and found:

86% of launches are just line extensions, which account for 62% of total revenues, but only 39% of profits.

The remaining 14% of launches were aimed at creating “blue oceans” – new areas of value innovation. This 14% of launches generated 38% of revenues and 61% of profits.

So, doesn’t it make good business sense to stop trying to compete with everyone else and start looking for ways to add value and reduce costs?  This is what we’re trying to do by bringing the law firm and the marketing firm together – add real quality to both the legal and the branding product, at the same time reducing the costs associated with handling separate partners for legal and marketing services.

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