The book mostly borrows from a range of over 140 strategic marketing moves within a period of over a century. Those who want to create a blue ocean strategy for their company must focus on value innovation that makes the competition irrelevant by the simultaneous pursuit of differentiation and low cost, thus creating a leap in value for the customers and an uncontested market space for the company. Blue ocean strategy is a strategy that advice companies to go to a new market, which interest. This post defines blue ocean strategy and explores a few examples while pointing out the five main risks of pivoting in the search for a rich blue sea without competitors. How to create uncontested market space and make the competition irrelevant, w. Jun 21, 2007 blue ocean strategy red ocean strategy 2. Chan kim and renee mauborgne, published by harvard business school press, boston, massachusetts, 2005, isbn 97815996192 blue ocean strategy is a business strategy book, first published on february 3, 2005. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Chan kim and renee mauborgne, professors at insead. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. Blue ocean strategy proposes that businesses can have more success by creating a blue ocean, rather than trying to compete in the red ocean.
Elements of a blue ocean strategy for nonprofits 1. That is why i used books, thesis, surveys, organizational records and data collected through. Blue ocean strategy formulation the four principles of. View the entire blue ocean leadership series here w. In contrast, blue ocean strategy originated from a study that took place over 10 years and analyzed company successes and failures in more than 30 industries. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. Blue ocean strategy is a strategy that advice companies to go to a new market, which interest customers and avoid competition from the existing market. The on the blue ocean strategy essay 1969 words 8 pages. Blue ocean strategy is a book published in 2005 and written by w. In this way, it swam into a blue ocean, offering a plastic watch at a price that allowed people to purchase two or three watches at one time.
They assert that these strategic moves create a leap in value for the company, its buyers, and its employees while unlocking new demand and making the competition irrelevant. How to create uncontested market space and make the competition irrelevant by w. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. Five steps to making a blue ocean shift blue ocean shift.
Blue ocean strategy displays an orderly way to deal with making the challenge unessential and traces standards and instruments any organization can use to make and catch their blue seas. Based on a study of 150 strategic moves spanning more than 100 years. Inside business 360,united states if you are still wondering whether to pick up a copy of blue ocean strategy, we hope this article will convince you. The premise of the book is that companies can succeed by creating. Sep 24, 2017 in 2005, blue ocean strategy, expanded edition.
Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. The first step to creating blue ocean strategy is to find new ideas and redefine markets as theyre commonly understood. While the book is aimed primarily at large, traditional businesses, our book club members managed to scale some of the advice to fit our needs. Blue ocean strategy including examples and pdf download. How to create uncontested market space and make the competition irrelevant unabridged by kim, w chan, mauborgne, renee isbn. Based on an eponymously titled book, this strategy argues that cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. Create a blue ocean strategy canvas like the ones below.
Blue ocean strategy 1creating blue oceans 3 2 analytical tools and frameworks 23 part two. Some strategic planning models are based on theories that dont quite pan out during gotomarket executions. Everyday low prices and free delivery on eligible orders. Blue ocean strategy and sustainability for strategic. Companies pursue blue ocean strategies to make competition irrelevant. The strategy canvas provides a highly visual tool to help look at future options. To learn more about the power of blue ocean strategy, visit blueoceanstrategy. You probably need to intentionally, consistently aim at the upper levels of maslows hierarchy for those blue ocean donors 3. How to build a sustainable blue ocean insead knowledge. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Blue ocean strategy presents a systematic approach to making the competition irrelevant and outlines principles and tools any company can use to create and capture their own blue oceans. Based on a study of 150 strategic moves spanning more than 100 years and 30 industries, blue ocean strategy addresses this question and provides a systematic approach to drafting and implementing your own blue ocean strategy.
Blue ocean strategy workshop at disted hospitality campus this short article examines the many ways blue ocean strategy bos can be used to create a better educational system. There youll find all the resources you needfrom ideas in practice and cases from government and private industry, to teaching materials, mobile apps, realtime updates, and tips and tools to help you make your blue ocean journey a success. The seminal book blue ocean strategy has sold over 3. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Value innovation strategy competes in an uncontested market space. The authors are now professors and codirectors of the blue ocean strategy institute at the insead business school in france. Intelligent readers dont need help figuring that out. The concept of blue ocean is based on the idea that the business universe is made up.
Outline the industry and get a good feel for its key attributes and the intensity of the competition. The book the origin of the terms red and blue oceans comes from blue ocean strategy how to create uncontested market space and make the competition irrelevant. Recognized as one of the most iconic and impactful strategy books ever written, blue ocean strategy, now updated with fresh content from the authors, argues that cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. The six paths framework in formulating blue ocean strategy are 1 look across alternative industries, 2 look across strategic groups within industry, 3look across buyer groups, 4 look across complementary product and service offerings, 5look across the functionalemotional orientation of an industry and 5look across time to shape trends. This book brings the best of those articles together all in one place. In this article you will learn how to make your competition irrelevant and have sales and profit growth in excess of anything you thought was even possible. Blue ocean strategies a summary blue ocean strategy is a business strategy book first published in 2005 and. All in all, blue ocean strategy is a book worth reading. Blue ocean strategy blue ocean strategy introduction blue ocean strategy is a marketing book by w. In this article you will learn how to make your competition irrelevant and have sales and profit. Each chapter is extremely in depth and contains real actions steps to take, and includes a wealth of flow charts and graphs which are not only helpful, but easy to understand. The four pillars of blue ocean leadership insead knowledge. The six paths framework in formulating blue ocean strategy.
You may or may not agree with the central philosophy, but you will be inspired. And fish for a blue ocean cluster of neighbors to serve and a red ocean strategy 1. Blue ocean strategy challenges companies to break out of the red ocean of bloody competition by creating uncontested market space that makes the competition irrelevant. The fair is designed to take the politics out of the decisionmaking process, get feedback, and consolidate peoples commitment to their chosen move. The book offers 6 paths to find new blue ocean opportunities outside your immediate industry. Blue ocean strategies summary blue ocean strategies a. Blue ocean strategy workshop at disted hospitality campus. The risks of following a blue ocean strategy the adaptive. How to create uncontested market space and make the.
A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Summary of the first four chapters of the international bestseller blue ocean strategy. The process sounds very much like how bos is used every day in the business world because not surprisingly, people in practically any industry ask similar questions. Recognized as one of the most iconic and impactful strategy books ever written, blue ocean strategy argues that cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. Blue ocean strategy can be found on amazon blue ocean strategy. The book succeeds in showing how businesses, can outdo their competitors. It requires the right research, patience and focus. The fifth and final step is where youll learn how to select your blue ocean move, rapidly test it in the market, and refine it to maximize its potential. Blue ocean strategy generally refers to the creation by a company of a new, uncontested market space that makes competitors irrelevant and that creates new consumer value often while decreasing costs. They are the authors of blue ocean strategy, which has sold over 3. Reviewing the blue ocean strategy universiteit twente. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. May 30, 2017 it reduced costs by using plastic instead of metal, for example, and reducing the parts in each watch from 150 to 50. Value innovation is a new way of thinking about and executing strategy that results in the creation of a blue ocean.
Essay about blue ocean strategy 825 words bartleby. This short article examines the many ways blue ocean strategy bos can be used to create a better educational system. In this article you will learn the plan they outline for how to make your competition irrelevant and have sales and profit growth in excess of anything you thought was even possible. Inside business 360,united states if you are still wondering whether to pick up a copy of blue ocean strategy, we. How to create uncontested market space and make the competition irrelevant, a book by professors w. It is a dangerous bad book because it takes some thinking to figure out why it is bad, despite its success, and despite the fact that its key metaphor of blue ocean vs. Listen to these blue ocean donors very carefully with engaging, accepting respect 4. Chan kim and renee mauborgne in the indie business book club. His book blue ocean strategy, coauthored with renee mauborgne, has sold 3. Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to.
A successful blue ocean strategy that has sustainability requires that all three strategy propositions be aligned in support of both differentiation and low cost. Blue ocean strategy, the global phenomenon that has sold over 4 million copies and is recognized as one of the most iconic and impactful strategy books ever written, argues that cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. This blog article is a overview of some of the key points of the book by w. To understand how an organisation achieves alignment to produce a highperforming and sustainable blue ocean, consider the case of the uk charity, comic relief. Blue ocean strategy is a landmark idea founded by w. The blue ocean strategy as a method for developing sustainable profitable frameworks implies the fundamental idea of developing new innovational markets with a majority of new customers. How to create uncontested market space and make competition irrelevant, is a market space that is undeveloped, and untapped by competitors. It was built on the notion of creating new markets where competition is irrelevant and the opportunity to grow and be profitable is unlimited. Blue ocean strategy and sustainability for strategic management. It is being published in a recordbreaking 44 languages and is a w. Now youre ready to launch your blue ocean strategic move. Sep 23, 2014 view the entire blue ocean leadership series here.
Formulating blue ocean strategy 3reconstruct market boundaries 47 4focus on the big picture, not the numbers 81 5reach beyond existing demand 101 6 get the strategic sequence right 117 fmkim. It is based on the view that market boundaries and industry structure are not a given and can be. We show you how to choose which blue ocean move to pursue by hosting a blue ocean fair. Your first task is to take the key aspects of the industry from both the companies perspective as well as the customers perspective and put them on the bottom axis. How to create uncontested market space and make the competition irrelevant from the worlds largest community of rea. Sep 26, 2016 the strategy canvas provides a highly visual tool to help look at future options. Blue ocean strategy is a bad book, but it is not your usual bad book. Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group. Blue ocean strategy case study service nsw 3 1 introduction blue ocean strategy1 has been used extensively to transform the public sector around the world at a local, state and national level. How to create uncontested market space and make the competition irrelevant pdf by w. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. It is about creating and capturing uncontested market space, thereby making the competition irrelevant.
Blue ocean strategy proposes that businesses can have more success by creating a blue ocean, rather than trying to compete in the red ocean the traditional market space that is filled. To join the free indie business book club, click here. Chan kim and renee mauborgne in their bestselling book of the same name. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. Pdf blue ocean strategy download full pdf book download. View notes blue ocean strategies summary from mgmt 430 at university of washington. The creation of blue oceans is about driving costs down while simultaneously driving value up for buyers. Download a pdf of this article and check back next tuesday for how to see your leadership reality. Innovation, new market space and creating demand are central characteristics.
Companies should instead look for new market space and ways to reinvent the industry. This post defines blue ocean strategy and explores a few examples while pointing out the five main risks of pivoting in the search for a. What is blue ocean strategy about blue ocean strategy. Now, 12 years later, the authors offer an exciting new book that synthesizes their experience in assisting with the implementation of blue ocean strategy.
Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Value innovation value innovation places equal emphasis on value and innovation. Made by group d of the minor global trendwatching 2015. Essay on blue ocean strategy a marketing book 1053.
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