The fair is designed to take the politics out of the decisionmaking process, get feedback, and consolidate peoples commitment to their chosen move. Based on 15 years of research, the authors used 150 successful strategic moves spanning 120 years of business history and across 30 industries to bring the blue. This strategy targets six principles that can be used in every organization so that they can arrive at a successful development and fulfilment of new markets. 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. Find your space in the blue oceanand build your blue ocean strategy. The book succeeds in showing how businesses, can outdo their competitors. The 6 steps of the blue ocean strategy from a process perspective published on february 24, 2015 february 24, 2015 14 likes 0 comments. Based on a study of 150 strategic moves spanning more than 100 years. Essay on blue ocean strategy a marketing book 1053. They are the authors of blue ocean strategy, which has sold over 3. Blue ocean strategy is a book published in 2005 and written by w. The 6 steps of the blue ocean strategy from a process. Blue ocean idea index the blue ocean idea index is a simple but robust test demonstrating how the sequence of utility, price, cost, and adoption form an integral whole to ensure commercial success through blue ocean strategy. The premise of the book is that companies can succeed by creating.
Aug 28, 2012 blue ocean strategy is about value innovation in general, in which no emphasis is put on reducing the speed to market. Essay on blue ocean strategy a marketing book 1053 words. Download a pdf of this article and check back next tuesday for how to see your leadership reality. 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. Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. Blue ocean strategy has helped numerous companies and. Jul 28, 2018 the strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w.
Before we dive into blue ocean strategy examples, lets get clear on what a blue ocean is. Four reasons why blue ocean thinking is crucial insead. Chan kim and renee mauborgne brought to the world blue ocean strategy based on their over decadelong research on key strategic moves spanning more than a hundred years and thirty industries. Achieved via the delivery of features that have a highest marginal benefit to customer needs. The result is the leadership canvas, the leadership profile and the blue ocean leadership grid all of which are grounded in acts and activities, easy to understand and communicate and that engage more people in an. View the entire blue ocean leadership series here w. Chan kim and renee maugborgne, was published in 2005 based on studies of 150 strategic business moves that took. Jul 15, 2014 blue ocean strategy, by renee mauborgne and w. This free ebook describes five essential business strategy development tools to help you develop a strategy for your business unit or organization. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of. In search of an answer, our initial step was to define the basic unit of analysis for our. Red oceans are all the industries in existence today the known market space.
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. Blue ocean strategy how to create uncontested market. Outline the industry and get a good feel for its key attributes and the intensity of the competition. In this article you will learn how to make your competition irrelevant and have sales and profit. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was. Value innovation strategy canvas four actions framework six paths. The explanation of the six principles and description of the adoption of these principles by companies, build the main content of this book. Feb 24, 2015 the 6 steps of the blue ocean strategy from a process perspective published on february 24. Chan kim and renee mauborgne, professors at insead. Otherwise, every company would pursue a blue ocean.
List out your factors, and map them out on the blue ocean strategy canvas. Pursuing a blue ocean strategy can be a great choice for many companies, but it is not without risks or challenges. Howto create uncontested market space and make the competitionirrelevant this is a great books that i think are not only fun toread but also very educational. In the book the authors present six 6 principles of creating the blue ocean strategy. Blue ocean strategy blue ocean strategy introduction blue ocean strategy is a marketing book by w. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. Chan kim harvard business school press, 2005, conceived of a new way for companies to drive profitable growth. Some strategic planning models are based on theories that dont quite pan out during gotomarket executions.
Select five or six of the blue ocean ideas that you brainstormed above. His book blue ocean strategy, coauthored with renee mauborgne, has sold 3. Heres a look at the basic premise of blue ocean strategy, and how you can apply it to your small business strategy. The six paths framework in formulating blue ocean strategy. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. Blue ocean strategy formulation the four principles of. This canvas helps you identify commercially compelling blue oceans by reconstructing market boundaries. Jul 16, 2015 the blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute.
The blue ocean strategy seems to be a perfect solution for present companies to become sustainable successful. The four pillars of blue ocean leadership insead knowledge. 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. View notes blue ocean strategies summary from mgmt 430 at university of washington. 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. Formulation principles reconstruct market boundaries focus on the big picture, not the numbers reach beyond existing demand get the strategic sequence right 2.
Red oceans, where competition is fierce in bloody waters, strategy centers around beating rivals, and wins are often zerosum. Lets revisit the six steps of the blue ocean strategy from a process pointofview. Just think of its initial blue ocean shift in book retailing that separated it from the pack with its offering of the largest selection of books in the world. 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. It is about creating and capturing uncontested market space, thereby making the competition irrelevant. Blue ocean shift is the definitive guide to shift you, your team, and your organization to new heights of confidence, market creation, and growth. 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. Companies should instead look for new market space and ways to reinvent the industry. It is being published in a recordbreaking 44 languages and is a bestseller across five. How to create uncontested market space and make the competition irrelevant by w. We show you how to choose which blue ocean move to pursue by hosting a blue ocean fair. Chan kim and renee mauborgne in their book blue ocean. Blue ocean strategy including examples and pdf download.
It captures the current state of play in the known market space. The text offers a practical handbook to business students and entrepreneurs who wish to rise above the fray of the competition, become pioneers in previously uncharted market territory, and gain access to impressive growth opportunities and an untapped customer base. The udemy blue ocean strategy free download also includes 4 hours ondemand video, 8 articles, 44 downloadable resources, full lifetime access, access on mobile and tv, assignments, certificate of completion and much more. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. Chan kim and renee mauborgne in their book blue ocean strategy. The book mostly borrows from a range of over 140 strategic marketing moves within a period of over a century. Blue ocean strategy is about value innovation in general, in which no emphasis is put on reducing the speed to market. It challenged the tenets of competitive strategy, the then dominant school of.
Blue ocean strategy for small businesses fundbox blog. This allows you to understand where the competition is currently investing, the factors the industry currently competes on in products, service, and delivery, and what. The authors use the metaphor of the blue ocean as a direct contrast to red oceans. To be able to do that, you have to look at your process innovation from a new perspective. The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. Rather than competing within the confines of the existing industry or. Five steps to making a blue ocean shift blue ocean shift. What is blue ocean strategy about blue ocean strategy. Jun 08, 2007 profit model of blue ocean strategy 30. Chan kim and renee mauborgne have created a comprehensive set of analytic tools and frameworks to create blue oceans of new market space. How tocreate uncontested market space and make the competitionirrelevant. Create a blue ocean strategy canvas like the ones below. 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 the blue ocean strategy, you must offer your customers a value innovation i. 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. There are six main principles that guide companies through the formulation and execution of their blue ocean strategy in a systematic risk minimizing and opportunity maximizing manner. 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. Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to. It is based on the view that market boundaries and industry structure are not a given and can be. Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group. In their 2017 new york times bestselling book, blue ocean shift, kim and mauborgne share how to put these practical marketcreating tools into practice to move from red to blue oceans and to do so in a way that people own and drive the process. Blue ocean strategies summary blue ocean strategies a.
Execution principles overcome key organizational hurdles build execution into strategy the four actions framework. Blue ocean strategy how to create uncontested market space and make the competition irrelevant facilitators. 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. The first four principles address blue ocean strategy formulation. This chapter f i g u r e 14 the six principles of blue ocean strategy. 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. Four steps of visualizing strategy the four steps of visualizing strategy builds on the six paths of creating blue oceans and. Value innovation strategy competes in an uncontested market space. Blue ocean is a slang term for the uncontested market space for an unknown industry or innovation. 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. The six paths framework is a core strategic tool used in blue ocean strategy. The 6 steps of the blue ocean strategy from a process perspective. It reduced costs by using plastic instead of metal, for example, and reducing the parts in each watch from 150 to 50.
Now youre ready to launch your blue ocean strategic move. Pdf blue ocean strategy how to create uncontested market. 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. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. It is being published in a recordbreaking 44 languages and is a w. Strategy and thinking is not limited by preconceived barriers, and a shift happens from a focus on the supply side to a focus on the demand. 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.
Reviewing the blue ocean strategy universiteit twente. Kim and mauborgne identified six 6 principles to be adopted in order for industries to generate growth and profit. Beyond competing proven steps to inspire confidence and seize new growth. 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. Blue ocean strategy how to create uncontested market space. Blue ocean strategies a summary blue ocean strategy is a business strategy book first published in 2005 and. Blue ocean strategy is the 2015 update to the classic business strategy text of the same name originally published in 2005. Free management strategy ebooks, templates and checklists. Choose five or six red ocean strategies that i listed above, or a few that you come up with on your own. The structure can be created or recreated by the steps taken by players in the market. Apr 03, 2010 blue ocean strategy summary and examples 1. An introduction to blue ocean strategy mba knowledge base.
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. How to create uncontested market space and the make competition irrelevant 2005. How to create uncontested market space and make the competition irrelevant, a book by professors w. Chan kim and renee mauborgne, develops and explains how to beat the competition by reaching beyond it into new unexplored markets. This blog article is a overview of some of the key points of the book by w. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. Sep 23, 2014 to put blue ocean leadership in action, we adapt the analytic tools and frameworks of blue ocean strategy to the leadership context. Blueoceanstrategie definition gabler wirtschaftslexikon. This paper aims to give the main guidelines for strategic implementation of blue oceans strategy and how this kind of strategy is a part of turnaround management. 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. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Blue ocean strategy ist eine methode zur entwicklung dauerhaft profitabler geschaftsmodelle. Value innovation value innovation is created in the region where a companys actions favorably affect both its cost structure and its value proposition to.
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