Know who developed the blue ocean strategy, understand what is a business universe, differentiate between blue ocean and red ocean, describe ways to create blue oceans, understand key terms related to blue ocean strategy, learn the steps to create a blue ocean strategy, list the blue ocean strategy. Welch, md, facep,1 and bob edmondson, mph2 a common argument against the accountable care model is that our customers are not clamoring for the system we are building. It is based on the view that market boundaries and industry structure are not a given and can be. Jun 08, 2007 profit model of blue ocean strategy 30. 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. 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. The concept of blue ocean strategy first took the business world by storm in 2005 when authors w. Applying blue ocean strategy to the foundation of accountable care shari j. Innovation, new market space and creating demand are central characteristics.
How to build a sustainable blue ocean insead knowledge. Blue ocean strategy for small businesses fundbox blog. We believe that an understanding of blue ocean strategy will help todays companies as they struggle to thrive in an accelerating and. The concept of blue ocean is based on the idea that the business universe is made up. Be sure to check out our book for detailed guidance on how to implement each step and use the tools, including what works and what doesnt, so you can achieve success. Bos has been successfully defined and applied in organizations in different. This blog article takes a look at what kind of roi some companies have achieved by implementing a blue ocean strategy by w. If you havent read it, you need to and go apply it to your sales process and product innovation lifecycle. Since, the industries are in a state of non existence, there is absolutely no relevance of peer. Blue ocean strategy is a concept that has been pioneered by insead professors, w.
A company will have more success, fewer risks, and increased profits in a blue ocean market. Chan kim and renee mauborgne wrote a bestselling book, blue ocean strategy, which has been translated into 43 languages. Jan 01, 2005 blue ocean strategy is the most successful book on business masterplanning. Blue ocean strategy how to create uncontested market space.
By the end of 2004, curves is expected to reach eight. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades. How is blue ocean strategy different from a classic differentiation 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. Tru group inc blue ocean strategy belongs in the dead sea. Guest columnist blue ocean strategys fatal flaw by wayne e. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. Blue ocean strategy pdf blue ocean strategy blue ocean strategy 2004 five keys to blue ocean strategy blue ocean strategy expanded edition book summary blue ocean strategy blue ocean strategy book by w. We believe that blue ocean strategy will send you on the right path towards creating your own uncontested space. Breaking the valuecost tradeoff enables you to stand out from the rest and make the competition irrelevant. Blue ocean strategy enables you to create uncontested market space and achieve profitable growth through what is called value innovation. In this article you will learn how to make your competition irrelevant and have sales and profit. How to create uncontested market space and make the competition irrelevant.
The first example of blue ocean strategy comes from computer games giant, nintendo, in the form of the nintendo wii. Optionally, you can download a convenient pdf with all six parts of this series, just click the button below. 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. Blue ocean strategy including examples and pdf download. A blue ocean strategy adopts the belief that markets and industries are not structured to beget competition. Understanding the proper sequence of the blue ocean strategy business model is essential to creating blue oceans. 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. Blue ocean pedagogical materials, used in over 2,800 universities and in almost every country in the world, go beyond the standard casebased method. Find your space in the blue oceanand build your blue ocean. Achieved via the delivery of features that have a highest marginal benefit to customer needs.
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. In contrast, blue ocean strategy creates new demand within red ocean market. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. What is distinctive about blue ocean strategy as a theory. Pdf blue ocean strategy for creating value of the organization. They represent businesses that may not be around today, or werent around until they came on to the scene. 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. Companies pursue blue ocean strategies to make competition irrelevant. But its much more common for a blue ocean to be created from within a red. Pdf impact of blue ocean strategy on organizational. Blue ocean strategy free download as powerpoint presentation. The risks of following a blue ocean strategy the adaptive. Bringing blue ocean into indonesia construction market firdaus, basbeth university of padjadjaran, doctor of management business program 46 dipati ukur bandung west java, indonesia abstract the global construction 2025 report, found that construction will account for.
Applying blue ocean strategy to the foundation of accountable. This short summary is a snapshot of the five steps to making a blue ocean shift. The structure can be created or recreated by the steps taken by players in the market. 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. This strategy aims at predicting excess supplying over demanding and crowded industry within red oceans. Impact of blue ocean strategy on organizational performance. Instead, create a new marketplace for your business that allows you to write the rules.
Blue ocean strategy and sustainability for strategic management. Outline the main components of kim and mauborgnes 2004 concept of blue ocean strategy. Blue ocean strategy strategic management automotive equipment. 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.
Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. Firdaus basbeth blue ocean strategy in construction rev 01. 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. The strategy can transform a current product or idea or create something total new. Jun 22, 2016 however, the blue ocean strategy takes a different view. This framework addresses not only the analytic aspects behind the creation of blue ocean strategy but also the allimportant human aspects of how to bring an organization and its people on this journey with a willingness to execute these ideas in. There is ample opportunity for growth tbat is both profitable and rapid. In the prior book the tools were described, but this book follow up with instructions on sequencing and use.
How to create uncontested market space and make the competition irrelevant, a. 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. This blog article is a overview of some of the key points of the book by w. 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.
Made by group d of the minor global trendwatching 2015. 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. View blue ocean strategy research papers on academia. Learn the definition of blue ocean strategy and the meaning of creating blue oceans here. Essay about blue ocean strategy 825 words bartleby. Pdf harvard business school press blue ocean strategy. Blue ocean strategy is a strategy that advice companies to go to a new market, which interest. Blue ocean strategy how to create uncontested market space and make the competition irrelevant boston. Value innovation strategy competes in an uncontested market space. It is all about devising and acquiring the uncontested market forum by spawning a new demand. Pdf download blue ocean strategy free unquote books. Blue ocean strategy theory and criticism 1246 words 5 pages. The blue ocean strategy explains how to guide your business across seas with less competition and greater profitability. Our multimedia cases and interactive exercises are designed to help you build a deeper understanding of key blue ocean strategy concepts, developed 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. Four reasons why blue ocean thinking is crucial insead. 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. Heres a look at the basic premise of blue ocean strategy, and how you can apply it to your small business strategy.
Blue ocean strategy is a book published in 2005 and written by w. 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. How to implement blue ocean strategy bos in b2b sector explore how to diagnosis a type of organisation hurdles which would resist the imple mentation of blue ocean strategy in practice. One is to launch completely new industries, as ebay did with online auctions. Set sail towards your blue ocean jk beteiligung gmbh. 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. In blue ocean strategy, there are three simple characteristics or yard stick used to evaluate strategies focus, divergence and compelling tagline. The competition on the market is getting stronger and more difficult to overcome, in many. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. Welcome to blue ocean strategy were thrilled to have you on board. Kim and mauborgne, 2004, 2005a, 2005bsrinivasan, 2006.
This article explains what the blue ocean strategy is and how it can become a game changer for businesses stuck in stagnating markets. This is a key principle of blue ocean strategy which sees low cost and differentiation being pursued simultaneously. The real opportunity is to create blue ocean for uncontested market space. What is blue ocean strategy about blue ocean strategy. A pathbreaking strategy known as blue ocean strategy is a pacifist marketing scheme and is considered a strategic planning tool for assessing a business. Blue ocean strategy for your learning business exploring. May 26, 2015 summary of the first four chapters of the international bestseller blue ocean strategy. Examples include fords 1908 model t, gms 1924 car for every purse and purpose. 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. How to create uncontested market space and make the competition irrelevant by 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. The blue ocean strategy is a consistent pattern of strategic thinking behind the creation of new markets and industries where demand is created rather than fought for and the rule of competition is irrelevant 1.
The nintendo wii launched in 2006 and at its heart is the concept of value innovation. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. Importance of the blue ocean strategy to a business bizfluent. Chan kim and renee mauborgne provide tools and frameworks for creating blue oceanstheir term for all the industries not in existence today. 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. How to create uncontested market space and make the competition irrelevant kim, w. Blue ocean strategy is a landmark idea founded by w. This is a focus on generating additional demand rather than improving or increasing supply through value innovation. 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 the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. When implementing the blue ocean strategy it is easy to stray to mental models with which managers are more familiar, and which the authors of the strategy, kim and mauborgne, call red ocean traps. Blue ocean strategy in case you have not come across the concept before is based on the idea that most organizations within any field or industry compete on the same basic factors.
Five steps to making a blue ocean shift blue ocean shift. Furthermore the blue ocean strategy was awarded with. The authors discuss the benefits for business owners to leave the red ocean. Tru group inc strategic planning consultants white paper download. Blue ocean strategy has helped numerous companies and organisations across the globe to create new market space and achieve pro. Blue ocean strategy blue ocean strategy is a strategic move that organizations or individuals use to create new product or ideas. Beyond competing proven steps to inspire confidence and seize new growth. In a few cases, companies can give rise to completely new industries, as ebay did with the online auction industry. Pollard in their international bestseller, blue ocean strategy, w. The book titled blue ocean strategy is not helpful to management dont buy it and if you already have it dump it. You can follow blue ocean strategy and leadership on.
Therefore, the blue ocean strategy provides companies with guidelines. Chan kim and renee mauborgne heres the strategy create new markets. Blue ocean strategies on february 12, 2020 blog, b2b strategy and messaging, virtual vp of marketing it can be difficult to succeed with the cutthroat competition in the business environment today. 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. The sequel to blue ocean strategy, blue ocean shift outlines a methodology to identify blue ocean opportunities. Yet, blue ocean strategy resembles porters approach quite strikingly, and at their hart the message of both approaches is the same. This article uses examples from the real world to discuss the specifics of the blue ocean strategy. Eight key points of blue ocean strategy heres the essence of blue ocean strategy captured in eight key points. Chan kim pdf download blue ocean blue ocean strategie blue ocean shift blue ocean shift pdf blue ocean shift espanol pdf ocean blue sanded grout red ocean strategy 15fen finding the blue ocean.
Blue ocean strategy pdf blue ocean strategy blue ocean strategy 2004 five keys to blue ocean strategy book summary blue ocean strategy blue ocean strategy expanded edition blue ocean strategy book by w. The blue ocean strategy is based on the concept that industry structure and market. Blue ocean strategy business model blue ocean tools and. Pdf how to implement blue ocean strategy bos in b2b sector. It is about creating and capturing uncontested market space, thereby making the competition irrelevant. Critically assess the strengths and limitations of this approach to pursuing competitive advantage. Blue ocean strategy is a strategy that advice companies. They are the authors of blue ocean strategy, which has sold over 3. Blue ocean strategy and its implications for businesses. Pricing innovation profit model of blue ocean strategy blue ocean idea index the blue ocean idea index is a simple but robust test demonstrating how the sequence of utility, price, cost, and adoption form an integral whole to ensure commercial success through blue ocean strategy.
Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to. Blue ocean strategy formulation the four principles of. Gm created a blue ocean in 1924 by injecting fun and. The economist a great read for any leader looking to get a real edge in business and establish a real competitive advantage in the market. Much of business strategy in the past few decades has focused on competition, including michael porters five.
A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. Blue ocean strategy is innovative, and it creates a. Characteristics of a good blue ocean strategy canopus. 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. I wish i could say my own pursuit of enlightenment led me to chan kim and renee mauborgnes masterpiece on embracing and leveraging difference. It requires the right research, patience and focus. 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. Blue ocean idea index the blue ocean idea index is a simple but robust test demonstrating how the sequence of utility, price, cost, and adoption form an integral whole to ensure commercial success through blue ocean strategy.
The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. In order to understand these characteristics, knowledge of blue. Change and risk management main page strategy related main page. Strategy and thinking is not limited by preconceived barriers, and a shift happens from a focus on the supply side to a focus on the demand. Importance of the blue ocean strategy to a business. Pdf for creating new demands and open up a new market space the pursuit of. The essence of the blue ocean strategy lies in market creation. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. Blue ocean strategy summary and examples mba knowledge.