The goal of a blue ocean strategy is for organizations to find and develop blue oceans uncontested, growing markets and avoid red oceans overdeveloped, saturated markets. It requires the right research, patience and focus. 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. Yet, blue ocean strategy resembles porters approach quite strikingly, and at their hart the message of both approaches is the same. 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. Chan kim and renee mauborgne focused on discovering the common factors that lead to the creation of blue oceans and the key differences that separate those winners from the mere survivors and those adrift in the red ocean. You can follow blue ocean strategy and leadership on twitter and facebook and visit the website here. The concept of blue ocean strategy first took the business world by storm in 2005 when authors w. Importance of the blue ocean strategy to a business bizfluent. This blog article takes a look at what kind of roi some companies have achieved by implementing a blue ocean strategy by w. Impact of blue ocean strategy on organizational performance. A blue ocean strategist doesnt choose between pursuing differentiation or low cost. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w.
They represent businesses that may not be around today, or werent around until they came on to the scene. Blue ocean strategy powerpoint templates present better. The competition on the market is getting stronger and more difficult to overcome, in many. Blue ocean strategy and sustainability for strategic management. Blue ocean strategy ends with ten cognitive traps that can deter you from creating blue oceans or that jeopardize your execution. Tru group inc blue ocean strategy belongs in the dead sea. The rapid pace of innovation and change in recent years has led scholars and executives to search for an approach to strategy that is more dynamic than harvard professor michael porters classic five forces. Students who successfully fulfil the series of bos elective courses i. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades. The authors discuss the benefits for business owners to leave the red ocean. How to create uncontested market space and make the competition irrelevant, w.
We would like to show you a description here but the site wont allow us. Challenging the conventional competition based approaches to business strategy, blue ocean. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Blue ocean strategy including examples and pdf download. Insead is the home of the blue ocean strategy programme, which is designed to help executives successfully implement the blue ocean strategy in their organisations. An introduction to blue ocean strategy mba knowledge base. Value innovation is a new way of thinking about and executing strategy that results in the creation of a blue ocean. Importance of the blue ocean strategy to a business. Christian amendment and the blue laws on religious grounds, and increas. How to create uncontested market space and make the competition irrelevant by w. With the launch of itunes, apple unlocked a blue ocean of new market space in digital music that it has now dominated for more than a decade. Pdf blue ocean strategy download full pdf book download. Patel and davidson 2003, three ways to approach a case study and these are. Specialist in blue ocean strategy, leadership and organisational change, consulting charitable and business organisations, teaching senior executives and.
Pdf impact of blue ocean strategy on organizational. Blue ocean strategy is a strategy that advice companies to go to a new market, which interest. Blue ocean strategy, property academy, the oriel, guildford, united kingdom. 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 value of having a blue ocean strategy is better understood when compared to a red ocean strategy. W chan kim and renee mauborgne blue ocean strategy unit. Blue ocean strategy how to create uncontested market. Blue ocean strategy and new business models in the food. The blue ocean strategy explains how to guide your business across seas with less competition and greater profitability. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. In their bestselling book, blue ocean strategy, authors w. Chan kim and renee mauborgne in their bestselling book of the same name. 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. The blue ocean strategy is a business book that has become mandatory for modern managers by proposing an organized structure to identify and implement differentiation in any industry and help you grow your business faster.
This blog article is a overview of some of the key points of the book by w. This strategy makes the competitors irrelevant and the main driver of the companys profits are the decreased costs. The book titled blue ocean strategy is not helpful to management dont buy it and if you already have it dump it. The most appropriate unit of analysis is the strategic move, the set of managerial actions and decisions involved in making a major marketcreating business offering. A company will have more success, fewer risks, and increased profits in a blue ocean market. This template enables managers and executives to create a detailed and comprehensible blue ocean strategy. Value innovation strategy competes in an uncontested market space. For that there is nothing better than something called the blue ocean strategy.
Apr, 2016 this strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. How to create uncontested market space and the make. 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. How to create uncontested market space and make the competition irrelevant, a book by professors w. Chan, mauborgne, renee, mauborgne, renee a download it once and read it on your kindle device, pc, phones or tablets. This article uses examples from the real world to discuss the specifics of the blue ocean strategy. Andy davison london, united kingdom professional profile. I believe it, of course, but thats no excuse for not knowing how your blog stands out from the competition. Companies pursue blue ocean strategies to make competition irrelevant. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. Apple observed the flood of illegal music file sharing that began in the late 1990s, enabled by file sharing programs such as napster, kazaa, and limewire. The concept of blue ocean is based on the idea that the business universe is made up. A blue ocean strategy adopts the belief that markets and industries are not structured to beget competition.
Blue ocean strategy is a method of creating business strategy of the enterprise, which was described in a book by w. These will be phrased as myths that are then debunked. May 30, 2017 t his month, we read blue ocean strategy by w. 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. See chapter two, meeting of the oceans, in eugenia vanina, ideas and. Blue ocean strategy is a business marketing strategy of creating a new market space for its services and products. Blue ocean strategy paper adel erolsky university of phoenix mkt421 ron rosalik august 25, 2014 blue ocean strategy paper in todays business world, competition is a big concern for nearly every corporation. It should be noted that most new business launches today are launches in the red ocean domain. Yellow tail wines blue ocean strategy case study essay 1401 words 6 pages. Blue ocean strategy summary and examples mba knowledge. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute.
Jul 16, 2015 in this article, we will look at 1 what is a blue ocean strategy. Jun 21, 2007 blue ocean strategy red ocean strategy 2. Blue ocean strategy is a book published in 2005 and written by w. Summary of the first four chapters of the international bestseller blue ocean strategy. How to create uncontested market space and make the competition irrelevant is the 2015 update to the classic business strategy text of the same name originally published in 2005. A instead of competing in existing industries, blue ocean strategy equips companies with frameworks and analytic tools to create their own blue ocean of. Innovation, new market space and creating demand are central characteristics. Human cytomegalovirus genomes sequenced directly from.
Blue ocean strategy at property academy, guildford. 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. Chan kim and renee mauborgne wrote a bestselling book, blue ocean strategy, which has been translated into 43 languages. See the complete profile on linkedin and discover andys connections and jobs at similar companies. Instead, kim and mauborgne 2005a, b, and c and kim et al. There is, on the one hand, his big tent strategy aimed at identifying. Its authors, insead professors w chan kim and renee mauborgne, continued their steady progress up the thinkers50 list, finishing second to christensen this year. This is a process, as andrew davison describes it, of decen tering. Jul, 2018 our study shows that blue ocean strategy is particularly needed when supply exceeds demand in a market, kim explained in an article on forbes. Jul 21, 2010 blue ocean strategy is the bestselling book which launched a worldwide revolution in business strategy. What is distinctive about blue ocean strategy as a theory. The creation of blue oceans is about driving costs down while simultaneously driving value up for buyers. Blue ocean strategy focuses on the ability to create new market space where there is no competition and where the demand for the services becomes uncontested. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking.
But, lets first understand what is blue ocean and how it is different from red ocean strategy. In this article you will learn how to make your competition irrelevant and have sales and profit. In this article, we will look at 1 what is a blue ocean strategy. Blue ocean strategy is a landmark idea founded by w. This 2005 book is aimed at anyone interested in pursuing the authors blue ocean. A differentiation strategy often amounts to little more than adding bells and whistles to the industrys current approach.
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. Blue ocean strategy is referred to a market for a product where there is no competition or very less competition. The mind of a blue ocean strategist blue ocean shift. One of the most successful efforts to do so is the book blue ocean strategy, by. This strategy aims at predicting excess supplying over demanding and crowded industry within red oceans. Blue oceans are about exploring noncustomers and creating new. Essay about blue ocean strategy 825 words bartleby. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. How is blue ocean strategy different from a classic differentiation strategy.
The risks of following a blue ocean strategy the adaptive. 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. Blue ocean strategy and sustainability for strategic. Chan kim and renee mauborgne in their book titled blue ocean strategy. Davidson 2002 also established that many small companies start as niches to. This is a focus on generating additional demand rather than improving or increasing supply through value innovation. The key theme in this article is that when businesses are faced with a choice of battling competition in saturated markets or creating an entirely new market. Eight key points of blue ocean strategy heres the essence of blue ocean strategy captured in eight key points. How to create uncontested market space and make the competition irrelevant, a. I hereby declare that i worked out the diploma work asit applied.
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. Chan kim and renee mauborgne in the indie business book club. View andy davisons profile on linkedin, the worlds largest professional community. Made by group d of the minor global trendwatching 2015. Blue ocean strategy and its implications for businesses. Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to. Jul 28, 2018 blue ocean strategy provides a systematic approach to break out of the red ocean of severe competition and make the competition irrelevant by reconstructing market boundaries to create a leap in value for both the company and its buyers. 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. It was built on the notion of creating new markets where competition is irrelevant and the opportunity to grow and be profitable is unlimited. This is the holy grail that marketers have been seeking since we began thinking about product differentiation, market segmentation, positioning, and all the. Blue ocean strategy is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. The blue ocean strategy represents the way in which to open up an untapped market space and create demand and growth opportunities kim and mauborgne, 2004. But many companies have done their homework and succeeded thanks to this strategy.
Sep 24, 2017 blue ocean strategy requires a different mindset. Theeffect of blue ocean strategyon increasing competitive. What is the blue ocean strategy the term blue ocean was coined by two professors w. This article explains what the blue ocean strategy is and how it can become a game changer for businesses stuck in stagnating markets. 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. Pdf asit applied to blue ocean strategy researchgate. Aim of this dissertation is to investigate whether eataly, the largest wine and food marketplace of the world, entered a blue ocean via business model innovation. Pdf download blue ocean strategy free unquote books. From such assumption, this strategy creates new innovation value for products and services or for new industry in order to benefit both customers and businessmen. Blue ocean strategy is a customerled strategy focusing on existing customers. Blue ocean strategy is a new way of thinking, a new strategic mindset, a bold new path to winning the future.
Insead value innovation thinking beyond competition strategy creating new demand finding uncontested market space avoiding commoditisation of product. 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. Furthermore the blue ocean strategy was awarded with. This blog article takes a look at what kind of roi some companies have achieved by implementing a blue. How to create uncontested market space and make the. If you truly have a blue ocean mindset, you do both.
Davison, mrcuniversity of glasgow centre for virus research. Value innovation value innovation places equal emphasis on value and innovation. So far, blue ocean support relies on a data base of case studies that does not statistically analyze overall patterns. Ive been quoted for saying that strategies are dead. Tru group inc strategic planning consultants white paper download. Implementing the blue ocean strategy is, simply put, a gargantuan task. Blue ocean strategy is a difficult concept to apply in practice. Introduction thesis statement the wine industry has over the years focused on producing highly priced products that have in turn slowed down the uptake of wines as compared to other alcoholic drinks. In contrast, blue ocean strategy creates new demand within red ocean market.
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