Strategy, strategic changes, blue ocean strategy, value innovation. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades. Today, we have with us 24 international participants for the fourth training. Essay about blue ocean strategy 825 words 4 pages 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. Blue ocean strategy universal business school by prof. In a few cases, companies can give rise to completely new industries, as ebay did with the online auction industry. 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. 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 in the indie business book club. Blue ocean strategy is a new way of thinking, a new strategic mindset, a bold new path to winning the future. However, the price competition only results in a red. Blue ocean strategy blue ocean strategy is a strategic move that organizations or individuals use to create new product or ideas.
Jul 16, 2015 in this article, we will look at 1 what is a blue ocean strategy. Chan kim and renee mauborgne, professors at insead. Blue ocean strategy paper essay topics, sample papers. Furthermore the blue ocean strategy was awarded with. But, lets first understand what is blue ocean and how it is different from red ocean strategy. The bluest ocean strategy for emerging ict business. Blue ocean strategy powerpoint templates present better. Blue ocean strategy case study service nsw 2 foreword service nsw is an important initiative in the delivery of an improved customer experience for the citizens and businesses of new south wales. We share interviews, case studies, and various competitions and events on blue ocean strategy, blue ocean shift and blue ocean leadership. Innovate your way to success and push your business to the next level. Welcome to blue ocean strategy were thrilled to have you on board. Blue ocean studio you can access a free trial here. Second, we investigate if means suggested by authors to create a blue ocean are applicable in emerging markets. 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.
It was built on the notion of creating new markets where competition is irrelevant and the opportunity to grow and be profitable is unlimited. When expressed through a value curve, an effective blue ocean strategy has three complementary qualities. Blue ocean strategy business model blue ocean tools and. But many companies have done their homework and succeeded thanks to this strategy. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. Saat kita berhasil menciptakan ruang pasar baru maka persaingan menjadi tidak lagi relevan yang. This can be done by creating more value for buyers enabling the company to open up a whole new uncontested market space, the blue ocean. The database and research have continued to expand. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure.
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. Insead was founded in 1957 in france and with the opening of its north american office in new york city. This allows them to build a viable business model and ensure that a company profits from the blue ocean it is creating. Blue ocean strategy ends with ten cognitive traps that can deter you from creating blue oceans or that jeopardize your execution. How to create uncontested market space and the make. This book is a practical and accessible guide to understanding and implementing blue ocean strategy, providing you with the essential information and saving time. Pdf on apr 1, 2012, ibrahim rawabdeh and others published blue ocean strategy as. 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 value of having a blue ocean strategy is better understood when compared to a red ocean strategy.
Yet, blue ocean strategy resembles porters approach quite strikingly, and at their hart the message of both approaches is the same. A 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. Pdf blue ocean strategy as a tool for improving a companys. I was pleased to be a part of a committed team in 2012 bringing service nsw to life, tasked with. Blue ocean strategy how to create uncontested market.
Blue ocean strategy, one of the best seller books has received tremendous attention amongst scholars and practitioners. 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. Blue ocean strategy chapter 14 the four action framework chapter two. 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. This paper first critically analyzes the conjectures presented in the book. 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. 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. It should be noted that most new business launches today are launches in the red ocean domain. We need to rethink how we search for innovative business ideas. How to create uncontested market space and make the competition irrelevant kim, w. How to create uncontested market space and make the competition irrelevant pdf by w. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Blue ocean strategy is innovative, and it creates a new market instead of fitting into the current market. Chan kim and renee mauborgne in their book titled blue ocean strategy.
Interested to know what executives have to say about their blue oceans. The sample paper on air asia blue ocean strategy familiarizes the reader with the topicrelated facts, theories and approaches. Pdf harvard business school press blue ocean strategy rajeh. Red ocean in blue oceans, demand is created rather than fought over. The cornerstone of the blue ocean strategy is value innovation. 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. Implementing the blue ocean strategy is, simply put, a gargantuan task. Blue ocean strategy concept overview analysis book summary.
May 26, 2015 summary of the first four chapters of the international bestseller blue ocean strategy. 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. Blue oceans are about exploring noncustomers and creating new. But in most cases, a blue ocean is created from within a red ocean when a company. How to create uncontested market space and make competition irrelevant by w. Blue ocean strategy and sustainability for strategic management. 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. Blue ocean strategy is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. The blue ocean strategy explains how to guide your business across seas with less competition and greater profitability. Lets focus on two of the businessworlds trending marketing strategies for electronic market space today blue ocean vs. 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. Blue ocean strategy including examples and pdf download.
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. This article explains the blue ocean strategy, developed by w. Apr, 2016 this strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking away from the competition. Instead of struggling to survive in the bloody sharkinfested red oceans of vicious competition, why not move to the blue oceans where there. One is to launch completely new industries, as ebay did with online auctions. It requires the right research, patience and focus.
Chan kim and renee mauborgne written by the business worlds new gurus, blue ocean strategy. 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. There is ample opportunity for growth tbat is both profitable and rapid. The blue ocean strategy means that you find some aspect of your market that no one is doing, and try to dominate that, rather than fighting it out with other vendors in your space a red ocean strategy. Blue ocean strategy is referred to a market for a product where there is no competition or very less competition. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. 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. Howto create uncontested market space and make the competitionirrelevant this is a great books that i think are not only fun toread but also very educational. Blue ocean strategy is a landmark idea founded by w. Before we dive into blue ocean strategy examples, lets get clear on what a. Blue ocean strategy and new business models in the food.
Chan kim and renee mauborgne, two distinguished professors of strategy and management with insead, one of the world. 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. This strategy makes the competitors irrelevant and the main driver of the companys profits are the decreased costs. Guillaume nicolas master s program in leadership and management in international context. 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. 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. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. Blue ocean strategy is a strategy that advice companies to go to a new market, which interest. Blue ocean strategy page 1 main idea the best way to beat your competition is, in fact, to stop competing against them. Achieved via the delivery of features that have a highest marginal benefit to customer needs. A company will have more success, fewer risks, and increased profits in a blue ocean market. Summary capter 1 4 of blue ocean strategy by lauri di vino. Absent such an integral approach, innovation will remain divided from the core of strategy. What is distinctive about blue ocean strategy as a theory.
Monopoly strategy is also called blue ocean strategy where the objective is the decisions leading to competition less environment on their products or services 45. The strategy can transform a current product or idea or create something total new. This blog article is a overview of some of the key points of the book by w. 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. Rather than concentrating on beating the competitors, the company must actually prioritize on making the competition irrelevant. Blue ocean strategy is a new way of thinking a movement away from a competitive mindset. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Blue ocean strategy is a consistent pattern of strategic thinking behind the. Blue ocean strategy is a book that was written by w. After reading you will understand the basics of this powerful strategy tool. 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 most appropriate unit of analysis is the strategic move, the set of managerial actions and decisions involved in making a major marketcreating business offering. An introduction to blue ocean strategy mba knowledge base. Strategize blue profile2010 blue ocean strategy aiden.
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. Blue ocean strategy can be applied across sectors or businesses. Set sail towards your blue ocean jk beteiligung gmbh. Pdf neither the industries nor the companies are doing all smart things. Value innovation strategy competes in an uncontested market space. Made by group d of the minor global trendwatching 2015.
Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to. Its authors, insead professors w chan kim and renee mauborgne, continued their steady progress up the thinkers50 list, finishing second to christensen this year. The same way that blue ocean strategy can create uncontested market space. Chan kim and renae mauborgnea in their book blue ocean strategy. 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. 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. In other words, when you go headtohead against rivals for a share of the existing market, this is like competing in a red ocean. This template enables managers and executives to create a detailed and comprehensible blue ocean strategy. Companies need to build their blue ocean strategy in the sequence of buyer utility, price, cost, and adoption. Blue ocean strategy is a powerful framework for finding new business opportunities. The competitive one that dominates existing markets or the innovative strategy that looks for opportunities to create new markets. What is the blue ocean strategy the term blue ocean was coined by two professors w.
Chan kim and renee mauborgne how to create uncontested market space and make competition irrelevant. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. How to create uncontested market space and the make competition irrelevant 2005. The risks of following a blue ocean strategy the adaptive. May 30, 2017 t his month, we read blue ocean strategy by w. The concept of blue ocean is based on the idea that the business universe is made up. Explore how blue ocean strategy has been applied around the world to transform. We will introduce the aspects of red ocean strategies that most of the companies use around the world, and then we will compare the advantages and disadvantages of using blue ocean strategies. 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. Blue ocean strategy has helped numerous companies and organisations across the globe to create new market space and achieve pro.
We believe that blue ocean strategy will send you on the right path towards creating your own uncontested space. Blue ocean strategy is a book published in 2005 and written by w. Blue ocean red ocean strategy blue ocean strategycompete in existing market space create uncontested new market space beat the competition make the competition irrelevant create a value cost trade off break the valuecost trade off competitive advantage value innovation segment existing customers attract noncustomers exploit. Eight key points of blue ocean strategy heres the essence of blue ocean strategy captured in eight key points. Blue ocean strategy is a business marketing strategy of creating a new market space for its services and products. In this article you will learn how to make your competition irrelevant and have sales and profit. Essay about blue ocean strategy 825 words bartleby. There is ample opportunity for growth that is both profitable and rapid.
Pdf harvard business school press blue ocean strategy. Long enough to describe the strategy and explain the pitfalls, but not padded too far. Blue ocean strategy theory and criticism 1246 words. Blue ocean strategy, one of the best seller books has received tremendous attention amongst scholars and.
How is blue ocean strategy different from a classic differentiation strategy. But its not always clear how to create a blue ocean strategy for yourself. Blue ocean strategy formulation the four principles of. Pdf blue ocean strategy download full pdf book download.
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