This blog article is a overview of some of the key points of the book by w. Typically, companies in the red ocean pursue incremental improvements for customers through either low cost or differentiation. All in all, blue ocean strategy is a book worth reading. You may or may not agree with the central philosophy, but you will be inspired. Blue ocean shift is the essential followup to blue ocean strategy, the classic 3. Jun 21, 2007 blue ocean strategy red ocean strategy 2. In the ten years since the first edition of blue ocean strategy was published, professors kim and mauborgne have had myriad conversations with managers and. Blue ocean strategy notes matthew ellis business 109. Value innovation value innovation places equal emphasis on value and innovation. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. 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.
This blog article takes a look at what kind of roi some companies have achieved by implementing a blue. The real opportunity is to create blue oceans of uncontested market space. Drawing on more than a decade of new work, kim and mauborgne show you how to move beyond competing, inspire your peoples confidence, and seize new growth, guiding you step by step through how to take your organization. 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 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. The creation of blue oceans is about driving costs down while simultaneously driving value up for buyers. To learn more about the power of blue ocean strategy, visit blueoceanstrategy. See more ideas about blue ocean strategy, business model canvas and ocean. 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. Blue ocean strategy chapter 14 the four action framework chapter two. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Pdf this article investigates the applicability of blue ocean strategy in regard to lowcost airlines in the civil. Jul 15, 2014 blue ocean strategy, by renee mauborgne and w. Based on a study of 150 strategic moves spanning more than 100 years. Competing in overcrowded industries is no way to sustain high performance. Blue oceans denote all the industries not in existence todaythe. Blue ocean strategy is the most successful book on business masterplanning the economist a great read for any leader looking to get a real edge in business and establish a real competitive advantage in the market.
However, there is a large difference between these two approaches. After reading you will understand the basics of this powerful strategy tool what is the blue ocean strategy. Innovation, new market space and creating demand are central characteristics. Achieved via the delivery of features that have a highest marginal benefit to customer needs.
Matthew ellis business 109 section 22 10112015 professor jasso citation. Sep 24, 2017 in 2005, blue ocean strategy, expanded edition. 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. 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. Profits and growth as an industry grows can diminish in a. Rather than competing within the confines of the existing industry or. This article explains the blue ocean strategy, developed by w.
The blue ocean strategy book has been sold over 3,5 million times, was published in 43 languages and is a bestseller across five continents. Porters five competition forces theory, blue ocean strategy, ipa. Value innovation is a new way of thinking about and executing strategy that results in the creation of a blue ocean. The profit is much easier than the rivalry with the competition on existing markets. Pdf empirical validation of blue ocean strategy sustainability in. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades. 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.
Blue ocean strategy workshop at disted hospitality campus. How to create uncontested market space and make the competition irrelevant, a book by professors w. 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. Venture strategies have been used by large multinationals for decades. The strategy canvas provides a highly visual tool to help look at future options.
John lewis rice n j martin mason carpenter gerald sanders. 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. Aug 28, 2012 blue ocean strategy is often compared to venture strategy. How to create uncontested market space and make the competition irrelevant hardcover. This blog article takes a look at what kind of roi some companies have achieved by implementing a blue ocean strategy by w. 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. Tools and frameworks for creating and capturing blue oceans it is constructed to create a new value curve and when you apply the four actions framework to the strategy canvas of your industry, you get a.
Blue ocean strategy is a method of creating business strategy of the enterprise, which was described in a book by w. They represent businesses that may not be around today, or werent around until they came on to the scene. 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. Pdf assemblages are the actors, artefacts or practices that are. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. 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. Sep 26, 2016 the strategy canvas provides a highly visual tool to help look at future options. 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. The on the blue ocean strategy essay 1969 words 8 pages. Chan kim and renee mauborgne 2006 blue ocean strategy has been described as a must read for all business students.
The four pillars of blue ocean leadership insead knowledge. 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. 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. In this article you will learn how to make your competition irrelevant and have sales and profit. Reviewing the blue ocean strategy universiteit twente. Blue ocean strategy is a book published in 2005 and written by w. Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to. Some strategic planning models are based on theories that dont quite pan out during gotomarket executions. Blue ocean strategy hbr bestseller harvard business publishing. It requires the right research, patience and focus. Blue ocean strategy blue ocean strategy is a strategic move that organizations or individuals use to create new product or ideas. 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. This short article examines the many ways blue ocean strategy bos can be used to create a better educational system.
Chan kim harvard business school press, 2005, conceived of a new way for companies to drive profitable growth. Blue ocean strategy is a bad book, but it is not your usual bad book. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. 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. Hbrs 10 must reads on strategy including featured article what is strategy. Theyve progressed every year since to 15th in 2005. Hbr s 10 must reads on strategy including featured article what is strategy.
How to create uncontested market space and make the competition irrelevant by w. In the ten years since the first edition of blue ocean strategy was published, professors kim and mauborgne have had myriad conversations with. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. The premise of the book is that companies can succeed by creating. Its authors, insead professors w chan kim and renee mauborgne, continued their steady progress up the thinkers50 list, finishing second to christensen this year. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was. Drawing on more than a decade of new work, kim and mauborgne show you how to move beyond competing, inspire your peoples confidence, and seize new growth, guiding you. Blue ocean strategy can be found on amazon blue ocean strategy. Essay about blue ocean strategy 825 words bartleby. The concept of blue ocean is based on the idea that the business universe is made up. Blue ocean strategy is innovative, and it creates a.
Furthermore the blue ocean strategy was awarded with. Blue ocean strategy and sustainability for strategic. Blue ocean strategy is based on the idea that every enterprise can achieve higher profit by creating new demand in noncompetitive market so called blue ocean. A lot has been written about it and i would have said practically everything had been said about it until i looked up the book on amazon to see the current price. Companies pursue blue ocean strategies to make competition irrelevant. 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. Value innovation strategy competes in an uncontested market space.
Chan kim and renee mauborgne, professors at insead. 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. Blue ocean strategy is a landmark idea founded 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. Value innovation is the cornerstone of blue ocean strategy 1 and it is the strategic move that allows a company to create a blue ocean. Red ocean is older and known including things such as competition, rules, and market dynamics. Chan kim and renee mauborgne, identify mental models that undermine marketcreating strategies. The blue ocean strategy bos is the strategic organizational approach that is based on the principle that companies should not engage in a competitive struggle but that. It reduced costs by using plastic instead of metal, for example, and reducing the parts in each watch from 150 to 50. Blue ocean strategy including examples and pdf download. 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. Tru group inc blue ocean strategy belongs in the dead sea. 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 marketing theory and the title of a book published in 2004 that was written by w. Use value innovation to create competitive advantages in blue ocean. It was built on the notion of creating new markets where competition is irrelevant and the opportunity to grow and be profitable is unlimited. The art of war by sun tzu, good strategy bad strategy.
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