The creation of blue oceans is about driving costs down while simultaneously driving value up for buyers. 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. Chan kim and renee mauborgne 2006 blue ocean strategy has been described as a must read for all business students. Intelligent readers dont need help figuring that out. When i read blue ocean strategy in 2006, i realized that the thought of finding these uncontested markets fit very well into what i had already planned for my company. It reduced costs by using plastic instead of metal, for example, and reducing the parts in each watch from 150 to 50. Value innovation value innovation is created in the region where a companys actions favorably affect both its cost structure and its value proposition to buyers. Noncustomers, not customers, hold the greatest insight into the points of pain and. 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. View the entire blue ocean leadership series here w. 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.
Pdf blue ocean strategy download full pdf book download. 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. 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. 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. Everyday low prices and free delivery on eligible orders. Blue ocean strategy proposes that businesses can have more success by creating a blue ocean, rather than trying to compete in the red ocean. A blue ocean strategy reduces costs by reducing features or services that are competed over, but are not important to buyers. 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. The blue ocean strategy works to create an untapped marketplace outside of the traditional market boundaries. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking.
How to create uncontested market space and make the competition irrelevant from the worlds largest community of rea. Blue ocean strategy is the fastest selling book in harvard business school press history with over 1 million copies sold in the first year and is now being published in a recordbreaking 41 languages. It was built on the notion of creating new markets where competition is irrelevant and the opportunity to grow and be profitable is unlimited. In their bestselling book, blue ocean strategy, authors w. Chan kim and renee mauborgne, professors at insead. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of.
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. Chan kim and renee mauborgne, develops and explains how to beat the competition by reaching beyond it into new unexplored markets. Blue ocean strategy is a book published in 2005 and written by w. Value innovation value innovation is created in the region where a companys actions favorably affect both its cost structure and its value proposition to. Reviewing the blue ocean strategy universiteit twente. 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. In order to unlock a blue ocean, a companys strategic profile should clearly show a strong focus, stand apart from competition, and have a clearly understood tagline that communicates the strategy. 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.
Innovation, new market space and creating demand are central characteristics. Download a pdf of this article and check back next tuesday for how to see your leadership reality. 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. 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. Create a new market space through innovating on the value you give to the customer. The premise of the book is that companies can succeed by creating. This blog article is part of a series on the book blue ocean strategy by w. In order to unlock a blue ocean, a companys strategic profile should clearly show a strong focus, stand apart from competition, and have a clearly understood tagline that communicates the. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w.
To address these questions, we turn to the strategy canvas, an analytic framework that is central to value innovation and the cre ation of blue oceans. Now you have become a senior analyst in your company. How to create uncontested market space and make the competition irrelevant pdf by w. How to create uncontested market space and make the. 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. Top best strategy books no matter what profession you are in, you need a strategy to go from a to b. In our research and discussions, weve encountered six especially salient assumptions. 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 unabridged by kim, w chan, mauborgne, renee isbn.
Blue ocean strategy can be found on amazon blue ocean strategy. Blue ocean strategy formulation the strategy canvas. Our website has a lot of features which will not display correctly without. This article explains the blue ocean strategy, developed by w. An introduction to blue ocean strategy mba knowledge base. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute.
The premise on which the blue ocean strategy thesis is built, is a simple one. How to create uncontested market space and make the competition irrelevant, w. 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 including examples and pdf download. Blue ocean strategy and sustainability for strategic management. A global bestseller and one of the best business strategy books available, blue ocean strategy challenges everything you thought you knew about strategic. In studying more than 150 blue ocean creations in over 30 industries, the authors observed that the traditional units of strategic analysiscompany and industryare of limited use in. All in all, blue ocean strategy is a book worth reading. Summary of the first four chapters of the international bestseller blue ocean strategy. 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. Jun 21, 2007 blue ocean strategy red ocean strategy 2. After reading you will understand the basics of this powerful strategy tool what is the blue ocean strategy.
The strategy canvas provides a highly visual tool to help look at future options. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Jul 28, 2018 the strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. I wish i could say my own pursuit of enlightenment led me to chan kim and renee mauborgnes masterpiece on embracing and leveraging difference.
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. His book blue ocean strategy, coauthored with renee mauborgne, has sold 3. 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. Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to. How to create uncontested market space and make competition irrelevant, is a market space that is undeveloped, and untapped by competitors.
Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. Tru group inc blue ocean strategy belongs in the dead sea. 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. Value innovation value innovation places equal emphasis on value and innovation. The four pillars of blue ocean leadership insead knowledge.
When expressed through a value curve, an effective blue ocean strategy has three complementary qualities. The strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. Further the blue ocean strategy aims to create new best practice rule by breaking the existing value cost trade off, thereby creating uncontested market space, thus making the competition irrelevant. Value innovation strategy competes in an uncontested market space. Lets say you are a finance professional and you embarked on your journey as a financial analyst. What is blue ocean strategy about blue ocean strategy. The seminal book blue ocean strategy has sold over 3. Their iconic and impactful books, blue ocean strategy and blue ocean shift, provide a. 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.
Chan kim and renee mauborgne, are both prominent professors at insead in fontainebleau, france. Essay about blue ocean strategy 825 words bartleby. 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. How to create uncontested market space and the make competition irrelevant 2005. How to create uncontested market space and make the competition irrelevant by w. I found the most useful part of the book was the description of company value curves which compare the values that you offer in different aspects of your product. Blue ocean strategy is a strategy that advice companies to go to a new market, which interest. The authors are now professors and codirectors of the blue ocean strategy institute at the insead business school in france. Sep 23, 2014 view the entire blue ocean leadership series here. In an audiobook that challenges everything you thought you knew, w.
Some strategic planning models are based on theories that dont quite pan out during gotomarket executions. Chan kim and renee mauborgne in their book blue ocean strategy. Blue ocean strategy is a business strategy book, first published on february 3, 2005 by the harvard business school press. Blue ocean strategy is a bad book, but it is not your usual bad book. The authors use the metaphor of the blue ocean as a direct contrast to red oceans. The on the blue ocean strategy essay 1969 words 8 pages. 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. In the decade since the publication of the first edition of our book, blue ocean strategy, weve. That is why i used books, thesis, surveys, organizational records and data collected through.
Chan kim and renee mauborgne in their bestselling book of the same name. And can you really measure and assess whether leaders are embracing and internalizing these personal traits and styles. Till date, this has remained the most influential book. The blue ocean strategy can be extremely rewarding, but can also be the most work intensive. 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. 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. In this article you will learn how to make your competition irrelevant and have sales and profit. Sep 26, 2016 the strategy canvas provides a highly visual tool to help look at future options. 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. Furthermore the blue ocean strategy was awarded with. The strategy was intended to fill a gap in the market. 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. Value innovation is a new way of thinking about and executing strategy that results in the creation of a blue ocean. It is being published in a recordbreaking 44 languages and is a w.
Blue ocean strategy and sustainability for strategic. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. The expanded edition of blue ocean strategy, is metaphorical, witty, and almost biblical in its commentary of the bloody waters of competitive red ocean market forces. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. They represent businesses that may not be around today, or werent around until they came on to the scene. Chan kim and renee mauborgne assert that tomorrows leading companies will succeed, not by battling their rivals for market share in the bloody red ocean of a shrinking profit pool, but by creating blue oceans of untapped new market spaces ripe for growth. The concept of blue ocean is based on the idea that the business universe is made up. Companies should instead look for new market space and ways to reinvent the industry. 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. The book remains one of the most successful business books of all time. May 26, 2015 summary of the first four chapters of the international bestseller blue ocean strategy. It then raises buyer value by creating new features or services the buyer wants. This, the authors refer to as the cornerstone of the blue ocean strategy.
It draws on our research on blue ocean strategy, our model for creating new. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was. The blue ocean approach is based upon the concept of value innovation which was also introduced by the authors of the blue ocean strategy, kim and mauborgene. He is the coauthor, along with renee mauborgne, of the book blue ocean strategy.
Blue ocean strategy uses three characteristics to determine a viable strategy. 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. 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. They are the authors of blue ocean strategy, which has sold over 3. Typically, companies in the red ocean pursue incremental improvements for customers through either low cost or differentiation. 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. It captures the current state of play in the known market space. 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. Well cover more of what this looks like in a number of examples, as well as frameworks for visualizing this.
Is it possible to apply blue ocean strategy for tourism. Based on a study of 150 strategic moves spanning more than 100 years. This book brings the best of those articles together all in one place. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group. This blog article is a overview of some of the key points of the book by w. You may or may not agree with the central philosophy, but you will be inspired. Made by group d of the minor global trendwatching 2015.
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