Jul 31, 2019 blue ocean strategy challenges the common belief that you have to outcompete your business rivals to achieve sustained profitability. A blue ocean strategy posits that when a customer changes the purpose of purchasing, a new market is created. Moreover, blue ocean supports companies to generate new blue ocean when new competitors come into their blue ocean. Chan kim, renee mauborgne book summary in pdf for free. Thousands of new, highquality pictures added every day. Blue ocean shift is already being translated into 30 languages. In 2010, polish group thinktank selected blue ocean strategy as one of the top 20 books that have shaped polish leaders. How to create uncontested market space and make the competition irrelevant by w. Blue ocean is a dynamic process that helps companies to create, and capture their own business. You may need to redefine the rules of competition by creating a blue ocean strategy. Dec 20, 2016 blue ocean strategy ppt free download as powerpoint presentation. Drawing on more than a decade of new research, blue ocean shift is the definitive guide to help you move beyond competing, inspire your peoples confidence, and seize new growth. Chan kim and renee mauborgne, professors at insead, and the name of the marketing theory.
The blue ocean strategy will diverge from that used by other industryplayersbecauseyourelookingacrossalternatives rather than solely attempting to be better than the established players. 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. Furthermore the blue ocean strategy was awarded with the best business book of 2005. Achieved via the delivery of features that have a highest marginal benefit to customer needs.
Download a pdf summary of blue ocean strategy by w. Reviewing the blue ocean strategy universiteit twente. The market universe is composed of two types of oceans. Blue ocean strategy how to create uncontested market. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades. Blue ocean strategy blue ocean shift are about how you can create new market space and make the competition irrelevant. The international bestseller blue ocean strategy by w. The strategy canvas the strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. Blue ocean strategy how to create uncontested market space. This is a strategy canvas template for you to start quick. It should be noted that most new business launches today are launches in the red ocean domain. Blue ocean strategy definition the business professor, llc. A business model describes the rationale of how an organization creates, delivers, and captures value economic, social, cultural, or other forms of. Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group.
Drawing on more than a decade of new research, blue ocean shift is the definitive guide to help you move beyond competing, inspire your peoples confidence, and. The strategy canvas is an analytical framework we developed in our research on blue ocean strategy, which can be used to express an organizations three strategy propositions. Sherman mohr, our primary consultant is an insead blue ocean strategy certified blue ocean practioner with strategic implementations in numerous industries. The present paper concentrates on the application of this strategy applied by companies of india, some of them tying up with their foreign collaborators. 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 shift is the essential followup to blue ocean strategy, the classic 3. Blue ocean strategy 1creating blue oceans 3 2 analytical tools and frameworks 23 part two. 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, 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. Many translated example sentences containing blue ocean spanishenglish dictionary and search engine for spanish translations. How to create uncontested market space and make the competition irrelevant pdf all ebook. Blue ocean strategy including examples and pdf download. 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. Blue ocean strategy how to create uncontested market space and make the competition irrelevant objectives what is blue ocean. Bos is the simultaneous pursuit of differentiation and low cost. It is a roadmap to move you, your team, and your organization to new heights of confidence, market creation and growth. The real opportunity is to create blue oceans of uncontested market space.
Researches in these studies prove that blue ocean strategy is considered a new marketing strategy for. 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. 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 focuses on the ability to create new market space where there is no competition and where the demand for the services becomes uncontested. Blue ocean strategy is one of the most infl uential business ideas of our time.
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. Closing the gap between blue ocean strategy and execution. With the intuitive strategy canvas editor you can draw strategy canvas in seconds. In a few cases, companies can give rise to completely new industries, as ebay did with the online auction industry. The alternative is to make your competitors irrelevant through innovation and creating your own market. Effective blue ocean strategy should be about risk minimization and not risk taking. 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. 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.
In short, you create a blue ocean by focusing on the factors that customers really care about, while discarding factors they dont. 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. There is ample opportunity for growth tbat is both profitable and rapid. If that individual changes purchasing habits based upon aesthetics or fashion, there is a new customer market. Blue ocean strategy is a book published in 2004 written by 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. A virtual entrepreneurial competition for high school students that makes business fun, creative, and engaging. When red ocean becomes too crowded, the need of creating a blue ocean strategy will increase. It is all about devising and acquiring the uncontested market forum by spawning a new demand. Watch this video to understand the essence of blue ocean strategy, the worldwide bestseller written by worldrenowned professors. But in most cases, a blue ocean is created from within a red ocean when a company. Blue ocean strategy competing in overcrowded industries is no way to sustain high performance.
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. Based on the analysis of the blue ocean strategy bos of the srikandi organizer, it can be concluded that the company needs to proceed a number of changes and innovations to be able to optimize. Blue ocean shift in your language blue ocean strategy. 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. 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. Pdf download full blue ocean strategy, expanded edition. Blue ocean strategy doesnt aim to outperform the competition.
Ambos titulos publicados en espanol por editorial norma en 1984 y 1995, respec tivamente. It aims to make the competition irrelevant by reconstructing industry boundaries. Based on a study of 150 strategic moves spanning more than 100 years and 30 industries. Value innovation strategy competes in an uncontested market space. 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 nostringsattached zoom call is made available to any individual or business decisionmaker that feels a discussion around business or personal direction is appropriate. This creates a new product offering that doesnt currently exist, in a space. 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 authors breakthrough observation was that while most companies drown in overpopulated red oceans teeming with cutthroat competition, they should seek calmer blue oceans. Find blue ocean strategy stock images in hd and millions of other royaltyfree stock photos, illustrations and vectors in the shutterstock collection.
When expressed through a value curve, an effective blue ocean strategy has three complementary qualities. Companies should instead look for new market space and ways to reinvent the industry. 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. This strategy is appropriately known as blue ocean strategy, which signifies the lack of bloody competition, pure blue deep still water in the ocean. The blue ocean strategy is best illustrated by the performance of cirque du soleil. In less than 20 years, cirque du soleil has achieved revenue levels that took ringling. Find out if this new york times bestselling book is available in your language and watch.
Blue ocean shift is the essential follow up to blue ocean strategy, the classic and over 4millioncopy global bestseller by worldrenowned professors chan kim and renee mauborgne. Red ocean vs blue ocean strategy differentiation or low cost differentiation and low cost compete in existing market space create uncontested market space. Blue ocean entrepreneurship competition home facebook. The logic behind the blue ocean strategy is counter intuitive.
Furthermore the blue ocean strategy was awarded with. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. This blog article is a overview of some of the key points of the book by w. Chan kim and renee mauborgne became required reading for business students and practitioners in every industry. Kim and mauborgne 2005 make it clear that its not about technology innovation blue oceans. 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 stepbystep through how to take your. Dec 11, 2016 blue ocean strategy the blue ocean approach is a strategic tool that helps innovation strategists asses current and desired future strategic states whereasred ocean is a current state. 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. Visual paradigm online vp online, an online strategy canvas drawing editor that supports strategy canvas and other diagram types such as erd, organization chart and more. A company will have more success, fewer risks, and increased profits in a blue ocean market. Blue ocean shift is the essential follow up to blue ocean strategy, the classic and 3. 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.
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