Blue ocean strategy and new business models in the food. 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. Created in 1984 by a group of street performers, cirque productions have been seen by almost 40 million people in 90 cities around the world. Chan kim at the panasonics crossvalue innovation forum 2018 in tokyo. Excess in the attributes and services offered, which happens through the effort to imitate the. Blue ocean strategy is a book published in 2004 written by w. Gain a new framework for strategy design and implementation. Download a pdf summary of blue ocean strategy by w.
How to create uncontested market space and make the competition irrelevant pdf. Indeed, it can be argued that managers failure to realize the differences between red and blue ocean strategy lies behind the dif. Start reading blue ocean strategy, expanded edition for free online and get access to an unlimited library of academic and nonfiction books on perlego. But many companies have done their homework and succeeded thanks to this strategy. May 12, 2020 a pathbreaking strategy known as blue ocean strategy is a pacifist marketing scheme and is considered a strategic planning tool for assessing a business.
Pdf on apr 1, 2012, ibrahim rawabdeh published blue ocean strategy as a tool for improving a companys marketing function. Competing in overcrowded industries is no way to sustain blue. Blue ocean is a dynamic process that helps companies to create, and capture their own business. 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. Whereas conventional strategic approaches drive companies to define their industry similarly and focus on being the best within it, blue ocean strategy prompts them to break out of the accepted. Reviewing the blue ocean strategy universiteit twente. 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. Imitation barriers to blue ocean strategy value innovation does not make sense to a companys conventional logic blue ocean strategy may conflict with other companies brand image natural monopoly. Companies should instead look for new market space and ways to reinvent the industry. A blue ocean strategythe first question the value curves answer is whether a business deserves to be a winner. Blue ocean strategy is a business strategy book, first published on february 3, 2005 by the harvard business school press.
In red ocean traps, kim and mauborgne reveal the faulty assumptions that keep managers tethered to existing overcrowded markets red oceans. The blue ocean strategy is to create an untapped space in the market. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades. His book blue ocean strategy, coauthored with renee mauborgne, has sold 3. The logic behind blue ocean strategy parts with traditional models focused on competing in existing market space. A company will have more success, fewer risks, and increased profits in a blue ocean market. Blue ocean strategy presents a systematic approach to making the competition irrelevant and outlines principles and tools any organization can use to create and capture their own blue oceans.
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. Blue ocean strategy makes sense of the strategic paradox that many organisations face. After having dealt with the blue ocean metaphor as well as having clarified the concept of value innovation, the chapter moves on by describing the basic analytical tools and frameworks that characterize the blue ocean strategy. The blue ocean strategy and shift promote a fresh look at innovation webwire,japan to achieve high growth, organizations need to focus on noncustomers and capturing new markets instead of competing among crowds of challengers, advises w. Blue ocean shift is the essential followup to blue ocean strategy, the classic 3. Start developing blue ocean strategy for your organisation in order to break away from the competition through. 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 strategy how to create uncontested market space.
Acquire an indepth understanding of blue ocean strategy tools and concepts developed at insead. Apr 03, 2010 blue ocean strategy summary and examples 1. The present paper concentrates on the application of this strategy applied by companies of india, some of them tying up with their foreign collaborators. Aug 14, 2017 blue ocean strategy pdf summary 12min team posted on august 14, 2017 16 min read microsummary. Moreover, the impacts of the shift from red oceans to blue oceans have been clarified. Blue ocean strategy how to create uncontested market space and make the competition irrelevant objectives what is blue ocean.
Learn how to engage your colleagues in a blue ocean strategy process. To which blue ocean strategy would respond, stop looking to. When red ocean becomes too crowded, the need of creating a blue ocean strategy will increase. The research 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. This blog article is a overview of some of the key points of the book by w. Blue ocean strategy how to create uncontested market. Blue ocean strategy is referred to a market for a product where there is no competition or very less competition. There is ample opportunity for growth tbat is both profitable and rapid. The blue ocean strategy will diverge from that used by other industryplayersbecauseyourelookingacrossalternatives rather than solely attempting to be better than the established players. Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. Chan kim and renee mauborgne 76 a onetime accordion player, stilt walker, and fireeater, guy. Blue ocean strategy doesnt aim to outperform the competition. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. In short, you create a blue ocean by focusing on the factors that customers really care about, while discarding factors they dont.
In this article you will learn how to make your competition irrelevant and have sales and profit. Red ocean vs blue ocean strategy differentiation or low cost differentiation and low cost compete in existing market space create uncontested market space. Humanness, confidence, and creative competence part two the five steps to making a blue ocean shift step one. In less than 20 years, cirque du soleil has achieved revenue levels that took ringling. When expressed through a value curve, an effective blue ocean strategy has three complementary qualities. Blue ocean strategy is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. The idea in brief the core idea the idea in practice putting the idea to work 1 article summary 2 blue ocean strategy a list of related materials, with annotations to guide further exploration of the articles ideas and. When a companys value curve, or its competitors, meets the three criteria that define a good blue ocean strategy focus, divergence, and a compelling tagline that speaks to. How to create uncontested market space and make competition irrelevant w. The blue ocean strategy is best illustrated by the performance of cirque du soleil. Pdf download blue ocean strategy, expanded edition. The aim of bos is not to outperform the competition in the existing industry, but to create new market space or a blue ocean, thereby making the. In 2010, polish group thinktank selected blue ocean strategy as one of the top 20 books that have shaped polish leaders.
Blue ocean strategy powerpoint templates present better. Principles of blue ocean strategy strategic management. Blue ocean strategy can be applied across sectors or businesses. Blue ocean strategy hbr bestseller harvard business.
In contrast, blue ocean strategy seeks to break the valuecost trade off by eliminating and reducing factors an industry competes on and raising and creating factors the industry has never offered. Value innovation strategy competes in an uncontested market space. How is blue ocean strategy different from a classic differentiation strategy. 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. The strategy canvas the strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy.
How to create uncontested market space and make the competition irrelevant pdf by w. Blue ocean strategy including examples and pdf download. 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. Blue ocean strategy won the thinkers50 2011 strategy award for best business book of the decade and in the same year, it was introduced to the fast company leadership hall of fame. 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. Competing in overcrowded industries is no way to sustain. Achieved via the delivery of features that have a highest marginal benefit to customer needs. How to create uncontested market space and make the competition irrelevant by w. The value of having a blue ocean strategy is better understood when compared to a red ocean strategy. Blue oceans strategy is the approach that suggests a company is better off searching for ways to play in uncontested market places instead of engaging with.
But in most cases, a blue ocean is created from within a red ocean when a company alters the boundaries of an existing industry. How to create uncontested market space and make the competition irrelevant ebook that will. How to create uncontested market space and make the competition irrelevant ebook read. It should be noted that most new business launches today are launches in the red ocean domain. Pdf blue ocean strategy as a tool for improving a companys. The database and research have continued to expand. Eight key points of blue ocean strategy insead knowledge. Tired of competing headtohead with other companies. Based on a study of 150 strategic moves spanning more than 100 years and 30 industries. The blue ocean strategy seems to be a perfect solution for present companies to become sustainable successful. It is about creating and capturing uncontested market space, thereby making the competition irrelevant.
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. Do you feel like your strategy differs little from the competition surrounding you. By focusing on strategies of competition in established industries, companies and researchers have overlooked the value of creating new market spaces where. 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. Learn how blue ocean strategy, developed by insead professors w. 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. When a companys value curve, or its competitors, meets the three criteria that define a good blue ocean strategy focus, divergence, and a compelling tagline that speaks to the marketthe company is on the right track.
Competing in overcrowded industries is no way to sustain high performance. To which blue ocean strategy would respond, stop looking to the competition. This creates a new product offering that doesnt currently exist, in a space without direct competitors. Blue ocean strategy 1creating blue oceans 3 2 analytical tools and frameworks 23 part two. 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. Principles of blue ocean strategy free download as word doc. Bos is the simultaneous pursuit of differentiation and low cost. Pdf blue ocean strategy download ebook full pdf download. What is blue ocean strategy about blue ocean strategy. In a few cases, companies can give rise to completely new industries, as ebay did with the online auction industry. In fact, blue ocean strategy cannot be avoided in modern business. It aims to make the competition irrelevant by reconstructing industry boundaries. The blue ocean strategy gave a competitive advantage to the srikandi organizer by innovating in arranging bundling packages with other wedding event vendors and making attractive promo packages. 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.
The six main principles guide companies through the formulation and execution of blue ocean strategy in a systematic, riskminimizing manner. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. A third tool, the eliminatereduceraisecreate grid, pushes firms to act on all four questions posed by the four actions framework and to create a new value curve. Blue ocean strategy, strategic thinking, red ocean, innovation, concept. It is all about devising and acquiring the uncontested market forum by spawning a new demand. Effective blue ocean strategy should be about risk minimization and not risk taking.
Jul 17, 2018 implementing the blue ocean strategy is, simply put, a gargantuan task. 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. The market often cannot support a second player patents or legal permits block imitation. The blue ocean strategy will be clearcut and easy to communicate meaning it will be able to be described in a tagline that is compelling and. Chan kim and renee mauborgne, is being adopted in executive education from open enrolment programmes to corporate specific programmes. Creating blue oceans cirque du soleil created uncontested new market space that made the competition. You may need to redefine the rules of competition by creating a blue ocean strategy. 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. If you ally dependence such a referred blue ocean strategy. 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.
The first four principles address blue ocean strategy formulation. The market universe is composed of two types of oceans. Download free blue ocean strategy expanded edition how to. This strategy is appropriately known as blue ocean strategy, which signifies the lack of bloody competition, pure blue deep still water in the ocean.
This international bestselling book sold more than a million copies in its first year of publication, and has. Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of strategy and international management at insead. 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.
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