The concept of blue ocean is based on the idea that the business universe is made up. Chan kim, of blue ocean strategy, expanded edition 2015. How to create uncontested market space if you prefer to attend this session from your own computer, then we will make a skype for business streaming link available to you. 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. How to create uncontested market space and make the competition irrelevant hardcover january 20, 2015. Challenging the conventional competition based approaches to business strategy, blue ocean. It is the idea of trying to find market spaces that are free of competitors by creating and caputuring new demand. 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. When expressed through a value curve, an effective blue ocean strategy has three complementary qualities.
How to create uncontested market space and make competition irrelevant. Blue ocean strategy introduces analytical tools to minimize risk. Competing strategy differentiation vs low cost leadership which of the factors that the industry takes for granted should be eliminated. Chan kim and renee mauborgne how to create uncontested market space and make competition irrelevant. Using the analogy of bowling, where hitting the kingpin results in all. Red ocean in blue oceans, demand is created rather than fought over. 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. Pdf impact of blue ocean strategy on organizational. How to create uncontested market space and make the competition irrelevant, a book by professors w. This led to increased competition, with private sector banks vying for. You cannot copy in full or in part any of our full text content and our original ed images without our prior consent. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Chan kim and renee mauborgne wrote a bestselling book, blue ocean strategy, which has been translated into 43 languages.
Second, we investigate if means suggested by authors to create a blue ocean are applicable in emerging markets. For that there is nothing better than something called the blue ocean strategy. Rendezvous next year in november 2016 for the third edition. There are six basic approaches to reconstruct market boundaries, also. The six paths framework in formulating blue ocean strategy.
Furthermore the blue ocean strategy was awarded with. Blue ocean strategy although economic conditions indicate the rising imperative of blue oceans, there is a general belief that the odds of success are lower when companies venture beyond existing industry space. Blue ocean strategy including examples and pdf download. The country is using blue ocean strategy to become a highincome, advanced nation by 2020, according to an insead report. In red oceans, there is a competitiveadvantage worldview, companies are often driven to outperform rivals and capture greater shares of existing or shrinking market space. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. Abstract blue ocean strategy provides a theoretical framework and a practical roadmap for companies to break away from. Their book teaches readers how to create uncontested markets for. The concept of the blue ocean strategy which is advocated by kim and mauborgne, will be applied as an analytical framework. 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. The blue ocean strategy bos is a novel method for firms to gain a. 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. A summary in slides pdf of blue ocean strategy, how to create.
Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. 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. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. They are the authors of blue ocean strategy, which has sold over 3. 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. If yes, the blue ocean leadership app is right for you. Most of the bowl was sold in the market made of the raw materials glass and plastic. This blog article is a overview of some of the key points of the book by w. Impact of blue ocean strategy on organizational performance. 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.
Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. 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. We need to rethink how we search for innovative business ideas. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. In executing a blue ocean strategy, how can a company overcome various organizational hurdles and build trust and commitment among people who work for or with the company. This paper first critically analyzes the conjectures presented in the book. 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. May 30, 2017 t his month, we read blue ocean strategy by w.
It should be noted that most new business launches today are launches in the red ocean domain. May 27, 2014 for that there is nothing better than something called the blue ocean strategy. Blue ocean strategy how to create uncontested market. Chan kim and renee mauborgne in their book blue ocean. How to build a sustainable blue ocean insead knowledge. However, the price competition only results in a red. I am certainly not alone in relishing my user experience with a nintendo wii. Blue ocean strategy mi major reference works wiley. The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents.
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. Chan kim and renee mauborgne in the indie business book club. 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. There is ample opportunity for growth that is both profitable and rapid. Chan kim and renee mauborgne in their book blue ocean strategy. Blue ocean is a slang term referring to the uncontested market space of. Blue ocean strategy can be applied across sectors or businesses. Selling items in bulk to increase the purchasing power of the company and as a result increasing value is now a strategy shared by many. Nor am i the first person to think about the wii strategy as clearly blue ocean for those of you who havent encountered this concept, blue ocean strategy is the idea, as espoused by two insead academics and consultants, that firms will reap much greater rewards from seeking out a competitive space where they. Four reasons why blue ocean thinking is crucial insead. Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to.
The bluest ocean strategy for emerging ict business. The insead blue ocean strategy institute is dedicated to extending the research on blue ocean shift, blue ocean strategy, and blue ocean leadership by. A instead of competing in existing industries, blue ocean strategy equips companies with frameworks and analytic tools to create their own blue ocean of. The blue ocean strategy book defines red oceans as those which already contain a high level of competition. We love to know how blue ocean strategy, blue ocean shift, and blue ocean leadership is applied around the world by other people and we monitor for blue ocean mentions so we will know if you do not abide by our rules. Apr, 2016 this strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. Chan kim and renee mauborgne, professors at insead. Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. Expanded editions of blue ocean strategy were published in 2015 and 2017, respectively. Blue ocean strategy and sustainability for strategic management. Blue ocean strategy is a concept that has been pioneered by insead professors, w. What is strategy strategy management is a collection of decision and action that produces the formulation and implementation of the plan. Blue ocean is a slang term for the uncontested market space for an unknown industry or innovation.
How to create uncontested market space and make the competition irrelevant, 10. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was. Theeffect of blue ocean strategyon increasing competitive. Pdf blue ocean strategy how to create uncontested market. A blue ocean future for costco a blue ocean future for costco costco has done well with the blue ocean strategy that they created back in the 1983, the problem is that others have caught on and have created competition in the territory that costco founded. 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. Importance of the blue ocean strategy to a business bizfluent.
After reading you will understand the basics of this powerful strategy tool. Jul 15, 2014 blue ocean strategy, by renee mauborgne and w. Red oceans, blue oceans, and your blog there are two types of oceans in this world, according to authors w. This strategy, which is based on extensive research of hundreds of companies spanning across decades and including several industries, proclaims that instead of battling competitors, companies can create new markets for themselves. This article explains the blue ocean strategy, developed by w. We have come to think of them as red ocean traps, because they effectively anchor. 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. Also it is the organizations ambitious and successful mission to create and innovate value and rely on strategic moves away. But, lets first understand what is blue ocean and how it is different from red ocean strategy. Blue green red and purple ocean strategy slideshare. How to create uncontested market space and make competition irrelevant w. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. Become a blue ocean leader with the leadership canvas app. The insead blue ocean strategy institute is dedicated to extending the research on blue ocean shift, blue ocean strategy, and blue ocean leadership by chan kim and renee mauborgne and disseminating it to professors, researchers and practitioners around the globe.
Blue ocean strategy tried to encourage the business into a new. Blue ocean strategy, one of the best seller books has received tremendous attention amongst scholars and practitioners. There are two types of oceans in this world, according to authors w. It was built on the notion of creating new markets where competition is irrelevant and the opportunity to grow and be profitable is unlimited. Blue ocean strategy and its implications for businesses.
This blog article takes a look at what kind of roi some companies have achieved by implementing a blue ocean strategy. Watch this video to understand the essence of blue ocean strategy, the worldwide bestseller written by worldrenowned professors chan kim and renee mauborgne. Jul 27, 2015 blue ocean strategy argues that tomorrows leading companies will succeed not by battling competitors, but by creating blue oceans of uncontested market space, where competition is rendered irrelevant of companies that made competition irrelevant in their industries to elicit the strategic logic behind blue ocean strategy. Blue ocean strategy and new business models in the food. An incoherent strategy when a companys value curve looks like a bowl of. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. The blue ocean strategy team congratulates all of the 2015 blue award winners and the organizers of the blue awards competition and event, axessio and hec business school paris. Blue oceans blue oceans refers to undefined market space, demand creation, opportunity for highly profitable growth most are created from within red oceans by expanding existing industry boundaries rules of game waiting to be set competition irrelevant blue ocean strategy is a marketcreating strategy.
Blue ocean strategy how to create uncontested market space and make the. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. An introduction to blue ocean strategy mba knowledge base. Value innovation strategy competes in an uncontested market space. Although there is an inevitability to having to compete in crowded markets, there are too many advantages to avoiding this situation to ignore the possibility of looking for blue space. Blue ocean strategy is a landmark idea founded by w. What is blue ocean strategy about blue ocean strategy. The authors discuss the benefits for business owners to leave the red ocean. Blue ocean strategy presents a systematic approach to making the competition. 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 competition in existing marketing spaces.
On the basis of a reconstructionist view of strategy, blue ocean strategy argues that industry structure can be changed endogenously by the strategic actions of micro. Smart phones, tablets, chromebooks, and ipads are not compatible for usage. The concept of blue ocean strategy first took the business world by storm in 2005 when authors w. Blue ocean strategy is a method of creating business strategy of the enterprise, which was described in a book by w. Blue ocean strategy and sustainability for strategic. Netflix blue ocean strategy by ameni kabboudi issuu. This blog article takes a look at what kind of roi some companies have achieved by implementing a blue ocean strategy by w. By using the descriptive method and the theories in strategic management, it is clearly visible how the implementation of blue ocean strategy by pt kintetsu world express indonesia can make the. Blue ocean strategy mi major reference works wiley online. Jul 21, 2010 blue ocean strategy is the bestselling book which launched a worldwide revolution in business strategy. This, in turn, requires the alignment of the value, profit, and people propositions of a strategy in support of pursuing both differentiation and low cost.
List the factors the customer cares about, and current dimensions of competition. Blue ocean in banking sector liberalization resulted in indias central bank reserve bank of india rbi, allowing private sector banks in the sector which saw opening of many more branches. As with kingpins in bowling, when you hit them straight on, all the. First published in 2005, it was updated and expanded with fresh content in 2015. Pdf blue ocean strategy download full pdf book download. To break from competition, a organization has to reconstruct the market boundary which is the first and foremost principle in creating blue ocean strategy. A blue ocean strategy leading to business model generation when creating a value for the mature consumer, we need a strategy. Chan kim and renee mauborgne, the writers of the 2005 book blue ocean strategy. Sep 24, 2017 blue ocean strategy requires a different mindset. Blue ocean strategy is a strategy that advice companies to go to a new market, which interest.
Blue ocean strategy is a book published in 2005 and written by w. Do you want to release employees ocean of untapped talent and energy in your organisation. Mar 11, 2015 4 blue ocean strategies for enduring sales model transformation published on march 11, 2015 march 11, 2015 76 likes 16 comments. Executing the blue ocean strategy asian productivity organization. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of strategy and international management at insead. 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. Learn the concepts of tipping point leadership and fair process that ensure effective execution of blue ocean strategy. His book blue ocean strategy, coauthored with renee mauborgne, has sold 3. Blue ocean strategy provides a theoretical framework and a practical roadmap for companies to break away from the cutthroat competition in existing industries and create new market space of. Now updated with fresh content from the authors, blue ocean strategy. Strategy canvas the strategy canvas is a significant component for a blue ocean strategy. In 2009, malaysias prime minister najib razak hosted a national blue ocean strategy summit to unite private sector leaders, civil servants, and key stakeholders to address economic and social issues. Blue ocean strategy provides a theoretical framework and a practical roadmap for companies to break away from the cutthroat competition in existing industries and create new market space of profitable growth. Chan kim harvard business school press, 2005, conceived of a new way for companies to drive profitable growth.
November 2015 andreas karaoulanis 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. In the early 1960s, while the pachinko or mahjong industry had the largest share of the leisure market, the bowling industry did not compete against these industries, but tried to attract new customers by creating new values. Blue ocean strategy, expanded edition harvard business publishing. Blue ocean strategy bos is a management concept which prescribes that organizations, rather than going headtohead with competitors, try to create and exploit new market spaces, socalled blue. They are the authors of the new york times and wall street journal bestseller blue ocean shift. How to create uncontested market space and make the competition irrelevant by w. 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.
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