Pdf blue ocean strategy as a tool for improving a companys. What is distinctive about blue ocean strategy as a theory. 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. Pdf harvard business school press blue ocean strategy rajeh. Blue ocean strategy challenges companies to break out of the red ocean of bloody. Blue ocean strategy bos fills this important void in the strategy field by offering a systematic approach to reconstructing industry boundaries and creating uncontested market space. Blue ocean strategy definition marketing dictionary mba. Jul 21, 2010 blue ocean strategy is the bestselling book which launched a worldwide revolution in business strategy. Blue ocean strategies summary blue ocean strategies a.
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. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Free blue ocean strategy powerpoint templates now that youve done the hard work of identifying your blue ocean strategy, its time to present it to top management. I was pleased to be a part of a committed team in 2012 bringing service nsw to life, tasked with. Blue ocean strategy summary click here to read this article. Blue ocean strategy is referred to a market for a product where there is no competition or very less competition. An introduction to blue ocean strategy mba knowledge base. The structure can be created or recreated by the steps taken by players 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. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. You may or may not agree with the central philosophy, but you will be inspired. 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.
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 is a strategy that advice companies to go to a new market, which interest. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. This blog article is a overview of some of the key points of the book by w.
How to create uncontested market space and make competition irrelevant by w. The blue ocean strategy seems to be a perfect solution for present companies to become sustainable successful. Chan kim and renee mauborgne that describes the opportunities of vast, untapped market spaces, or blue oceans, that can be developed by expanding market boundaries or launching new industries. Blue ocean strategy blue ocean strategy is a strategic move that organizations or individuals use to create new product or ideas.
The strategy canvas provides a highly visual tool to help look at future options. This is a key principle of blue ocean strategy which sees low cost and differentiation being pursued simultaneously. Essay about blue ocean strategy 825 words bartleby. 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. Eight key points of blue ocean strategy heres the essence of blue ocean strategy captured in eight key points. Interested to know what executives have to say about their blue oceans. Blue ocean strategy is a business strategy book, first published on february 3, 2005 by the harvard business school press. At least, that is, until competitors start to sail in and challenge their incumbency. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. 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. The rapid pace of innovation and change in recent years has led scholars and executives to search for an approach to strategy that is more dynamic than harvard professor michael porters classic five forces.
Chan kim and renee mauborgne, professors at insead. They are the authors of blue ocean strategy, which has sold over 3. Since, the industries are in a state of non existence, there is absolutely no relevance of peer. Its authors, insead professors w chan kim and renee mauborgne, continued their steady progress up the thinkers50 list, finishing second to christensen this year. 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. 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. Chan kim and renee mauborgne in their bestselling book of the same name. The insead blue ocean strategy institute is dedicated to extending the research on blue ocean shift, blue ocean strategy, and blue ocean leadership by. Recognized as one of the most iconic and impactful strategy books ever written, blue ocean strategy argues that cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. Core competences are important for the performance and success of the company goddard, 1997. Blue ocean is a slang term for the uncontested market space for an unknown industry or innovation. Chan kim and renee mauborgne, are both prominent professors at insead in fontainebleau, france. Blue ocean strategy and new business models in the food.
The strategy focuses on moving away from an existing market and seaching for new markets. Blue oceans, in contrast, are defined by untapped market space, demand. Underlying thinking contains little if anything that is new if you redefine just about everything of course you have to have a new model. Blue ocean strategies a summary blue ocean strategy is a business strategy book first published in 2005 and. Pdf blue ocean strategies and disruptive innovation. Blue ocean strategy refers to the building of a new, uncontested market space that makes competitors irrelevant. Chan kim and renee mauborgne in their book blue ocean. One of the most successful efforts to do so is the book blue ocean strategy, by. Chan kim and renee mauborgne in their book blue ocean strategy. Blue ocean strategy including examples and pdf download. 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. A term coined from the 2005 book, the blue ocean strategy, by w.
All in all, blue ocean strategy is a book worth reading. Four reasons why blue ocean thinking is crucial insead. Over 4 million copies sold wall street journal and businessweek bestseller recognized as one of the most iconic and impactful strategy books ever written the global phenomenon that has sold over 4 million copies, is published in a recordbreaking 46 languages and is a bestseller across five continentsnow. The first company to sail into the blue ocean gets the whole market to itself.
Blue ocean strategy is a growth strategy framework focused on the idea of creating an uncontested market spacei. Venture strategies have been used by large multinationals for decades. Blue ocean strategy uses three characteristics to determine a viable strategy. Sep 24, 2017 in 2005, blue ocean strategy, expanded edition. Harvard business school press, mla citation kim, w. 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. Blue ocean strategy can be found on amazon blue ocean strategy. This strategy aims at predicting excess supplying over demanding and crowded industry within red oceans.
With the necessary resources, blue oceans can be created and recorded successfully. Blue ocean strategy is a book published in 2005 and written by w. Indeed, the definition of blue ocean changes so many times that it is difficult to fathom what is meant by blue ocean strategy. Blue ocean strategy is a new way of thinking, a new strategic mindset, a bold new path to winning the future. It should be noted that most new business launches today are launches in the red ocean domain. Jul 16, 2015 the blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present.
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. 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. Chan kim and renee mauborgne how to create uncontested market space and make competition irrelevant. Reviewing the blue ocean strategy university of twente student. Blue ocean strategy is a concept that has been pioneered by insead professors, w. 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. The on the blue ocean strategy essay 1969 words 8 pages. 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. Based on a study of 150 strategic moves, spanning more than 100 years across 30 industries, the authors, chan kim and renee mauborgne show that lasting success comes not. Challenging the conventional competition based approaches to business strategy, blue ocean. How to create uncontested market space and make the competition irrelevant, a book by professors w. Click the link above to read the key concepts and everything you want to know about the blue ocean strategy.
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. They are the authors of blue ocean strategy, which is recognized as one of the most iconic and impactful strategy books ever written. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. Pdf harvard business school press blue ocean strategy.
Reviewing the blue ocean strategy universiteit twente. The seminal book blue ocean strategy has sold over 3. The premise of the book is that companies can succeed by creating. Blue ocean strategy powerpoint templates present better. 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. In this article you will learn how to make your competition irrelevant and have sales and profit. The red ocean describes a situation where existing industry rules are readily formed, static and. 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. Kim has an executive role at the insead blue ocean strategy institute as a codirector, and she is a distinguished fellow at insead, where she teaches the different blue ocean strategies and management techniques as we.
Using bos to create new market space in sustainability. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. Value innovation strategy competes in an uncontested market space. Kim has an executive role at the insead blue ocean strategy institute as a codirector, and she is a distinguished fellow at insead, where she teaches the different blue ocean strategies and management techniques. Blue ocean strategy how to create uncontested market. Americanborn economist and a business theorist renee mauborgne currently works as a professor for strategy and management theories mis. Click here to download the blue ocean strategy summary pdf.
Blue ocean strategy and its implications for businesses. This strategy especially tries to offset this unconscious part in an analytical framework. This shifts the focus of strategy from a zerosum towards a nonzerosum paradigm. The first example of blue ocean strategy comes from computer games giant, nintendo, in the form of the nintendo wii.
There youll find all the resources you needfrom ideas in practice and cases from government and private industry, to teaching materials, mobile apps, realtime updates, and tips and tools to help you make your blue ocean journey a success. If youve been following dans work for some time, you know that he is a fan of not competing, but dominating your competition. Boss studies show that successful companies that created blue oceans pursued both differentiation and low cost simultaneously, in stark contrast to porters influential view porter 1985 of pursuing either low cost or differentiation strategies to avoid. Innovation, new market space and creating demand are central characteristics.
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. Some strategic planning models are based on theories that dont quite pan out during gotomarket executions. 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. 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. In contrast, blue ocean strategy creates new demand within red ocean market. Here, strategy is seen as breaking the existing valuecost tradeoff and thereby creating a blue ocean of uncontested market space. How to create uncontested market space and the make competition irrelevant 2005. It refers to the clear blue water color that is not contaminated or infected by the bloody red color of water 14. Blue ocean strategy can be applied across sectors or businesses.
Blue ocean strategy is the simultaneous pursuit of differentiation and low. Blue ocean strategy and sustainability for strategic management. Blue ocean strategy is innovative, and it creates a new market instead of fitting into the current market. In red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are well understood. Achieved via the delivery of features that have a highest marginal benefit to customer needs. The most important characteristic of blue ocean strategy bos is that it rejects the fundamental principles of conventional strategy.
It is all about devising and acquiring the uncontested market forum by spawning a new demand. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking away from the competition. Blue ocean strategy and blue ocean shift, created by worldrenowned professors chan kim and renee mauborgne, is a new way of thinking, a movement away from a. The strategy can transform a current product or idea or create something total new. Specifically, these new markets give a company a very high competitive advantage as well as low pricecost pressure. We share interviews, case studies, and various competitions and events on blue ocean strategy, blue ocean shift and blue ocean. Blue ocean strategy is often compared to venture strategy. Blue ocean strategy summary and examples mba knowledge. Tru group inc blue ocean strategy belongs in the dead sea. They represent businesses that may not be around today, or werent around until they came on to the scene. It is being published in a recordbreaking 44 languages and is a bestseller across five.
The blue ocean strategy as a method for developing sustainable profitable frameworks implies the fundamental idea of developing new innovational markets with a majority of new customers. This framework is very innovative, as its principles challenge the conventional business strategy principles of fighting competitors headon. Blue ocean strategy bos is a framework which inspires to innovate and develop new demand and new markets to sell your products instead of fighting with competition over the same market share and satisfying the same demand which is typically done in a red ocean strategy ros. Under this theory of strategy, strategy determines structure that leads to. To learn more about the power of blue ocean strategy, visit blueoceanstrategy.
View notes blue ocean strategies summary from mgmt 430 at university of washington. Blue ocean strategy is a method of creating business strategy of the enterprise, which was described in a book by w. Blue ocean strategy formulation the four principles of strategy formation click here to read this article. Blue ocean strategy financial definition of blue ocean strategy. Red oceans represent the traditional existing industries and known market space, where industry boundaries are defined and accepted. 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. How to create uncontested market space and make the competition irrelevant pdf by w.
Michel porter supports to compete in existing market space, beat the competition, exploit existing demand, make the valuecost tradeoff, align the whole. 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. The profit is much easier than the rivalry with the competition on existing markets. 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 marketing theory in which a business enters a market that has little or no competition. Here is the definition that kim and mauborgne give, on their website. By guiding companies to pursue both differentiation and low cost, blueocean strategy seeks to break the valuecost tradeoff.