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Blue Ocean Or Fast-Second Innovation? A Four-Breakthrough Model To Explain Successful Market Domination


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    (Institut d'Administration des Entreprises, Université Paris I Panthéon-Sorbonne, 21 rue Broca 75005 Paris, France; Orange Consulting, 114 rue Marcadet 75018 Paris, France)


    (Vlerick Leuven Gent Management School, Vlamingenstraat 83, Leuven 3000, Belgium; Ecole Polytechnique, Management Research Center, ENSTA/PREG, 32 Boulevard Victor 75015 Paris, France)

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    Innovation is widely recognized as a major driver of long-term corporate growth. Successful innovators who manage to dominate new markets enjoy Schumpeterian rents for their inventions. How then can a firm dominate a new market? Two streams of literature have proposed opposite answers to this question.The First Mover approach indicates that by setting up a strong differentiation strategy, companies are supposed to create a new area where profits abound. This approach is supported especially by Kim and Mauborgne (2004) who coined the term Blue Ocean to describe it.The Fast Second approach, defended by Markides and Geroski (2005), contends, on the contrary, that companies should not try to become pioneers, but should target the newly created market in second position, and colonize it.But neither Blue Ocean nor Fast Second are able to convincingly explain successful market domination. Our study of 24 innovation cases suggests that innovation which leads to market domination is instead achieved by using four kinds of breakthroughs, separately of simultaneously.

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    Bibliographic Info

    Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal International Journal of Innovation Management.

    Volume (Year): 14 (2010)
    Issue (Month): 03 ()
    Pages: 359-378

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    Handle: RePEc:wsi:ijimxx:v:14:y:2010:i:03:p:359-378

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    Keywords: Breakthroughs; strategy; First Mover; Fast Second; pioneer; colonisator;


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