Blue ocean strategy including examples and pdf download. Blue ocean strategy how to create uncontested market space. The creation of blue oceans is about driving costs down while simultaneously driving value up for buyers. It is about creating and capturing uncontested market space, thereby making the competition irrelevant. Pdf blue ocean strategy download full pdf book download. Companies should instead look for new market space and ways to reinvent the industry. 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 can be found on amazon blue ocean strategy. In order to create this shift in attention from red oceans to blue oceans the authors came up with a concept called value innovation that allows for a simultaneous pursuit. Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. Each industry underwent continuous upheaval, each time spurred by a blue ocean strategy that 1 reduced factors unimportant to buyers, 2 increased factors important to buyers, 3 expanded the market. Recognized as one of the most iconic and impactful strategy books ever written, blue ocean.
This collection of work by globally preeminent management thinkers w. Blue ocean strategy proposes that businesses can have more success by creating a blue ocean, rather than trying to compete in the red ocean. Value innovation and how to successfully incubate blue ocean. Blue ocean strategy is referred to a market for a product where there is no competition or very less competition. Chan kim and renee mauborgne in the indie business book club. The successful creation of a blue ocean can create brand equity which could last for years or even decades. The premise of the book is that companies can succeed by creating. Blue ocean shift, however, provides a clear process for business identifying opportunities and developing plans for. Achieved via the delivery of features that have a highest marginal benefit to customer needs. All in all, blue ocean strategy is a book worth reading. By doing this they were able to break the valuecost trade off by providing better value than. Value innovation is a new way of thinking about and executing strategy that results in the creation of a blue ocean. Using a value creation compass to discover blue oceans.
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. Instruction is minimal, being confined to the star of the exercise video or book and. Jul, 2018 for struggling businesses, mauborgne recommended the strategy canvas, which is featured in her and kims newest book, blue ocean shift. Reviewing the blue ocean strategy universiteit twente. Named a best book of 2017 by amazon winner of the best leadership and strategy book of 2017 by 800ceoread kim and mauborgne have followed one blockbuster book with another. In other words, when you go headtohead against rivals for a share of the existing market, this is like competing in a red ocean. Value innovation is the cornerstone of blue ocean strategy. We analyzed companies that created those blue oceans and their less. The strategy canvas provides a highly visual tool to help look at future options. How blue ocean strategies create more customer value and cut costs at the same time.
Chan kim and renee mauborgne brings together their perennial bestseller book blue ocean. Henderson chair professor of strategy and international management at insead. Blue ocean strategy can be applied across sectors or businesses. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. What it takes to shift from competing to creating why nondisruptive creation is as important as disruption in seizing new growth. Blue ocean strategy is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. Chan kim and renee mauborgne as explored in their new book their new book blue ocean shift 2017. Pdf blue ocean strategy how to create uncontested market. The authors use the term blue ocean strategy to refer to the new management approach they are selling in their book.
Throughout the book they use the metaphor of red and blue oceans red oceans. Blue ocean strategy is when an organization breaks away from the conventional approach to facilitate the creation of new uncontested market space thereby making competition irrelevant. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. In their 2017 new york times bestselling book, blue ocean shift, kim and mauborgne share how to put these practical marketcreating tools into practice to move from red to. Pdf using a value creation compass to discover blue oceans. What is blue ocean strategy about blue ocean strategy. Companies can create new market space by zeroing in on the complements that detract from the value of their own product or service.
Value innovation the cornerstone of bos value innovation places equal emphasis on value and innovation. You may or may not agree with the central philosophy, but you will be inspired. Apr 03, 2010 value innovation the cornerstone of bos value innovation places equal emphasis on value and innovation. Sep 26, 2016 the strategy canvas provides a highly visual tool to help look at future options. While this came in appendix a in the book, this is a good time to cover three industries with repeated blue ocean creation. 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. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of.
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. Furthermore the blue ocean strategy was awarded with. Rather than concentrating on beating the competitors, the company must actually prioritize on making the competition irrelevant. How to create uncontested market space and make competition irrelevant, is a market space that is undeveloped, and untapped by competitors. This is where the concept of value innovation is placed as the cornerstone of this strategy, and the six principles of blue ocean strategy are introduced, the latter. The cornerstone of blue ocean strategy what consistently. In contrast, blue ocean strategy seeks to break the valuecost tradeoff by eliminating and reducing factors an industry. This book provides practical frameworks and analytics for the systematic pursuit and. These markets are new and as such, there is the risk of completely misjudging the market and getting it wrong. It is a dangerous bad book because it takes some thinking to figure out why it is bad, despite its success, and despite the fact that its key metaphor of blue ocean vs. Value innovation is created in the region where a companys actions favorably.
The structure can be created or recreated by the steps taken by players in the market. Intelligent readers dont need help figuring that out. May 30, 2017 to join the free indie business book club, click here. This masterclass examines the blue ocean value innovation process, how it works in practice and how it has evolved since the publication of blue ocean strategy 2005 by w. The profit is much easier than the rivalry with the competition on existing markets. 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. But, lets first understand what is blue ocean and how it is different from red ocean strategy. In their just released book, blue ocean shift, chan kim and renee mauborgne, creators of blue ocean strategy, deliver the definitive guide to shifting yourself, your team and your organisation to. While blue ocean strategy helped to identify new avenues for strategic success, it fell short on providing the actual steps needed to jump from a crowded marketplace into the fabled blue ocean of the title. Blue ocean strategy formulation the four principles of. This happened, for example, when apple created its itunes music download service in 2003. This blog article is a overview of some of the key points of the book by w.
Value without innovation tends to focus on value creation on creating blue. The blue ocean strategy is presumably based on the use of value innovations. How to create uncontested market space and make the competition irrelevant, w. How to create uncontested market space and make the competition irrelevant kindle edition by kim, 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. Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group.
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. Blue ocean strategy page 1 main idea the best way to beat your competition is, in fact, to stop competing against them. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades. Recognized as one of the most iconic and impactful strategy books ever written, blue ocean strategy, now updated with fresh content from the authors, argues that cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. Value innovation and how to successfully incubate blue. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. 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 article is based on their book, blue ocean strategy.
There are two ways we can create a blue ocean strategy. 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. How to create uncontested market space and make the competition irrelevant pdf by w. The six paths framework in formulating blue ocean strategy. Value innovation is the new way of thinking about, and executing, strategy that results in the creation of a blue ocean and a break from the competition. There can be a very highprofit margin in new markets. It is being published in a recordbreaking 44 languages and is a w. It is based on the view that market boundaries and industry structure are not a given and can be. Sep 24, 2017 in 2005, blue ocean strategy, expanded edition. 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.
One is by launching or introducing a completely new product, service, or concept. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. Sheehan and ganesh vaidyanathan i n their landmark 2005 book blue ocean strategy and the research articles that. In their 2017 new york times bestselling book, blue ocean shift, kim and mauborgne share how to put these practical market creating tools into practice to move from red to.
Blue ocean strategy for creating value of the organization examination of. How to create uncontested market space and make the competition irrelevant, a book by professors w. If a company can identify what consumers currently value and then rethink how to provide that value, differentiation and low cost can both be achieved. Importantly, value innovation defies one of the most commonly accepted dogmas of competitionbased strategy. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. Pdf for creating new demands and open up a new market space the pursuit of differentiation. 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. How to create uncontested market space and make the competition irrelevant harvard business school press, 2005. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. How cirque du soleil broke out of the circus market and created its own. Using a value creation compass to discover blue oceans norman t. 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. Blue ocean strategy proposes that businesses can have more success by creating a blue ocean, rather than trying to compete in the red ocean the traditional market.
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. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Using a value creation compass to discover blue oceans article pdf available in strategy and leadership 372. Chan kim and renee mauborgne, professors at insead. The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. How to create uncontested market space and make the. For instance, decreasing costs and prices by 2% can create a lot of value but it doesnt lead to a new market space and differentiation.
Value innovation strategy competes in an uncontested market space. The blue ocean strategy argues that consumers dont have to choose between value and affordability. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. The book the origin of the terms red and blue oceans comes from blue ocean strategy how to create uncontested market space and make the competition irrelevant. Blue ocean shift takes the groundbreaking principles of their original work and offers a smart, systematic plan to help any organization move from competing in existing markets to.
Based on a study of 150 strategic moves spanning more than 100 years. To join the free indie business book club, click here. Pdf blue ocean strategy for creating value of the organization. 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 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. Jan 12, 2020 where red ocean strategy is a zerosum game that is all about splitting up the pie between rivals, blue ocean strategy is about creating the pie andor enlarging it.
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