Second, we investigate if means suggested by authors to create a blue ocean are applicable in emerging markets. In this article, the concept of value innovation, the cornerstone of blue ocean strategy, is analysed using the example of tefal actifry, a new type of french fry maker that used only one teaspoon of oil to make two pounds of fries, with roughly 40% fewer calories and 80% less fat. The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. This strategy makes the competitors irrelevant and the main driver of the companys profits are the decreased costs. We need to rethink how we search for innovative business ideas. The book succeeds in showing how businesses, can outdo their competitors. At the end of all rounds of the simulation, our company health was as follows.
Tru group inc strategic planning consultants white paper download. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. Essay on blue ocean strategy a marketing book 1053 words. He is known as coauthor of the 2005 book blue ocean strategy. Our team in the blue ocean strategy simulation was anuket. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking.
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. Mar 09, 2012 revealing the idea of blue ocean strategy, renee mauborgne shares the secret for how to create uncontested market space and make the competition irrelevant. This paper first critically analyzes the conjectures presented in the book. The text offers a practical handbook to business students and entrepreneurs who wish to rise above the fray of the competition, become pioneers in previously uncharted market territory, and gain access to impressive growth opportunities and an untapped customer base. What is distinctive about blue ocean strategy as a theory. Furthermore the blue ocean strategy was awarded with. Value innovation strategy competes in an uncontested market space. To break from competition, a organization has to reconstruct the market boundary which is the first and foremost principle in creating blue ocean strategy. A instead of competing in existing industries, blue ocean strategy equips companies with frameworks and analytic tools to create their own blue ocean of.
This, in turn, requires the alignment of the value, profit, and people propositions of a strategy in support of pursuing both differentiation and low cost. Blue ocean strategy is a concept that has been pioneered by insead professors, w. Chan kim and renee mauborgne how to create uncontested market space and make competition irrelevant. Blue ocean strategy is the 2015 update to the classic business strategy text of the same name originally published in 2005. Blue ocean strategy of apple from ipod to ipad presented by manu balaji kowshik mayur 2.
Blue ocean strategy is the bestselling book which launched a worldwide revolution in business strategy. Blue ocean strategy although economic conditions indicate the rising imperative of blue oceans, there is a general belief that the odds of success are lower when companies venture beyond existing industry space. The book mostly borrows from a range of over 140 strategic marketing moves within a period of over a century. How to create uncontested market space and make competition irrelevant w. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of strategy and international management at insead. Its authors, insead professors w chan kim and renee mauborgne, continued their steady progress up the thinkers50 list, finishing second to christensen this year.
Blue ocean strategy and its implications for businesses. In a few cases, companies can give rise to completely new industries, as ebay did with the online auction industry. View the entire blue ocean leadership series here w. They all accepted and reacted to the same problems defined by their industry.
Blue ocean strategy how to create uncontested market. Blue ocean strategy provides a theoretical framework and a practical roadmap for companies to break away from the cutthroat competition in existing industries and create new market space of. Blue ocean strategy introduces analytical tools to minimize risk. A systematic way to grow your business without competing renee mauborgne, coauthor of blue ocean strategy and the new book blue ocean. You cannot copy in full or in part any of our full text content and our original ed images without our prior consent. The concept of blue ocean is based on the idea that the business universe is made up. It challenges the traditional structuralist view of strategy that regards industry structure as fixed and given. This blog article is a overview of some of the key points of the book by w. The four pillars of blue ocean leadership insead knowledge. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. Pdf impact of blue ocean strategy on organizational. Renee mauborgne is also a professor of strategy at insead and a fellow of the world economic forum.
Blue ocean strategy blue ocean strategy introduction blue ocean strategy is a marketing book by w. November 2015 andreas karaoulanis this paper aims to give the main guidelines for strategic implementation of blue oceans strategy and how this kind of strategy is a part of turnaround management. Tru group inc blue ocean strategy belongs in the dead sea. This article explains the blue ocean strategy, developed by w. Blue ocean strategy is a book published in 2005 and written by w. Jul 21, 2010 blue ocean strategy is the bestselling book which launched a worldwide revolution in business strategy. Competing strategy differentiation vs low cost leadership which of the factors that the industry takes for granted should be eliminated. In contrast, blue ocean strategy is based on a reconstructionist view of strategy whereby companies can shift the productivity frontier outwards by reconstructing market boundaries to create a bigger economic pie. In a nutshell the strategy forsakes traditional competition for exploration and market creation. 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. In other words, everyone was going for a bigger slice of the exact same pie. 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. Achieved via the delivery of features that have a highest marginal benefit to customer needs. A blue ocean future for costco a blue ocean future for costco costco has done well with the blue ocean strategy that they created back in the 1983, the problem is that others have caught on and have created competition in the territory that costco founded.
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. There is ample opportunity for growth tbat is both profitable and rapid. Jul 16, 2015 in this article, we will look at 1 what is a blue ocean strategy. We love to know how blue ocean strategy, blue ocean shift, and blue ocean leadership is applied around the world by other people and we monitor for blue ocean mentions so we will know if you do not abide by our rules. The blue ocean strategy is based on the concept that industry structure and market. 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. What is the blue ocean strategy the term blue ocean was coined by two professors w. Blue ocean strategy for creating value of the organization ijrte. Impact of blue ocean strategy on organizational performance.
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. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades. Implementation of the blue ocean strategy using simulation. How to create uncontested market space and make competition irrelevant. How to create uncontested market space and make the competition irrelevant, a. 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. A systematic way to grow your business without competing grow renee mauborgne, coauthor of blue ocean strategy and the new book blue ocean shift, on why disrupting an. One of my favorite business books, alongside atlas shrugged by ayn rand and steve jobs by walt isaacson, is blue ocean strategy, by w. Chan kim and renee mauborgne, professors at insead. Challenging the conventional competition based approaches to business strategy, blue ocean.
Blue ocean strategy bos is a management concept which prescribes that organizations, rather than going headtohead with competitors, try to create and exploit new market spaces, socalled blue. In this article, we take a closer look at the factors that are responsible for jetblues success so far, and its strategy going forward. Kim says blue ocean strategy goes beyond competition by opening up a larger pie. Blue ocean strategy and new business models in the food. There are six basic approaches to reconstruct market boundaries, also.
What is strategy strategy management is a collection of decision and action that produces the formulation and implementation of the plan. In executing a blue ocean strategy, how can a company overcome various organizational hurdles and build trust and commitment among people who work for or with the company. Blue oceans strategy is the approach that suggests a company is better off searching for ways to play in uncontested market places instead of engaging with competition in existing marketing spaces. Your experience is your blue ocean strategy successful. Sep 23, 2014 download a pdf of this article and check back next tuesday for how to see your leadership reality. Strategy canvas the strategy canvas is a significant component for a blue ocean strategy. This blog article takes a look at what kind of roi some companies have achieved by implementing a blue ocean strategy by w. Blue ocean strategy mi major reference works wiley. 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. This group includes those who are consistently using the existing products and services.
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 most appropriate unit of analysis is the strategic move, the set of managerial actions and decisions involved in making a major marketcreating business offering. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. 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. List the factors the customer cares about, and current dimensions of competition. This course introduces the key concepts, frameworks and tools of blue ocean strategy and lays out the fundamental methodology and process for creating and capturing blue oceans. How to create uncontested market space and the make. The strategy represents the simultaneous pursuit of high product differentiation and low cost, thereby making competition irrelevant. After reading you will understand the basics of this powerful strategy tool. We owned a 14% market share with red box and 15% market share with blue box. Tools and frameworks for creating and capturing blue oceans it is constructed to create a new value curve and when you apply the four actions framework to the strategy canvas of your industry, you get a.
Explain these from the perspective of company, competition, costs, and markets. Blue ocean strategy, create new markets and leave the. On the basis of a reconstructionist view of strategy, blue ocean strategy argues that industry structure can be changed endogenously by the strategic actions of micro. Blue ocean strategy is a landmark idea founded by w. Blue ocean strategy chapter 14 the four action framework chapter two. Pdf blue ocean strategy application in the course of planning and. 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. This blog article takes a look at what kind of roi some companies have achieved by implementing a blue ocean strategy.
It should be noted that most new business launches today are launches in the red ocean domain. A new framework of blue ocean strategy for innovation. Blue ocean strategy 2 bos, on the contrary, focuses on creating new demand in places where there is none, thus making the pie bigger instead of fighting over whom gets the largest slice of the pie. Netflix blue ocean strategy by ameni kabboudi issuu. Since the launch of the wii pronounced we videogame system, nintendo has taken great steps toward making the competition irrelevant. Blue ocean strategy might be one of the best business books in a decade. Blue ocean strategy is a business marketing strategy of creating a new market space for its services and products. Red ocean strategy blue ocean strategy the statistical population and community of customers in the blue ocean strategy include kim and mauborgne, 2005. Challenging the conventional competition based appro. Pdf this paper deals with approaches to the analysis of competitiveness in the construction field. Pdf for creating new demands and open up a new market space the pursuit of differentiation can. Blue ocean strategy application in the course of planning and.
Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. He is a graduate of the university of michigan business school. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. Red ocean in blue oceans, demand is created rather than fought over. Blue ocean strategy this new thinking makes it possible for innovative entrepreneurs to increase their chances for success and the extent of potential success. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. An introduction to blue ocean strategy mba knowledge base. In contrast, blue oceans are untapped market space characterized by demand creation and opportunities for highly profitable growth. Pdf blue ocean strategy for creating value of the organization. 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. Learn the concepts of tipping point leadership and fair process that ensure effective execution of blue ocean strategy. How to create uncontested market space and make the competition irrelevant book online at best prices in india on. Blue ocean strategy, one of the best seller books has received tremendous attention amongst scholars and practitioners.
They are completely or relatively satisfied with provided service. The authors allude to the fact that most companies borrow their strategic thinking from military models see paradox of 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. How is blue ocean strategy different from a classic differentiation strategy. The six paths framework in formulating blue ocean strategy. To learn more about the power of blue ocean strategy, visit. Chan kim born 1952 is a koreanborn business theorist, professors of strategy and management at insead, and codirector of the insead blue ocean strategy institute in fontainebleau, france. The book titled blue ocean strategy is not helpful to management dont buy it and if you already have it dump it. Expanded editions of blue ocean strategy were published in 2015 and 2017, respectively. Blue ocean strategycase of samsung mobiles krishi sanskriti. Chan kim and renee mauborgne in their book titled blue ocean strategy.
This template enables managers and executives to create a detailed and comprehensible blue ocean strategy. 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. Click here to download the blue ocean strategy pdf including examples. Download a pdf version of the formulation teaching module here. Blue ocean strategy including examples and pdf download. Chan kim, of blue ocean strategy, expanded edition 2015. There is ample opportunity for growth that is both profitable and rapid. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. A blue ocean strategy leading to business model generation when creating a value for the mature consumer, we need a strategy. Eight key points of blue ocean strategy heres the essence of blue ocean strategy captured in eight key points.
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