Chan kim and renee mauborgne in their book blue ocean strategy. The blue ocean strategy approach to strategy is based on six principles that cater for the major risks of a new market creation project. 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. The premise of the book is that companies can succeed by creating. The six principles of formulating blue ocean strategy. 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. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. The six principles of blue ocean strategy risk factor each principle attenuates evaluation principles risk factor each principle attenuates formulation principles 8. Formulation principles reconstruct market boundaries focus on the big picture, not the numbers reach beyond existing demand get the strategic sequence right 2. Blue ocean strategy including examples and pdf download.
Value innovation value innovation places equal emphasis on value and innovation. How to create uncontested market space and the make competition irrelevant 2005. 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. It is based on the view that market boundaries and industry structure are not a given and can be. How to create uncontested market space and make the competition irrelevant unabridged by kim, w chan, mauborgne, renee isbn. Execution principles overcome key organizational hurdles build execution into strategy the four actions framework. Blue ocean strategy how to create uncontested market. Our aim is to make the formulation and execution of blue ocean strategy as systematic and actionable as competing in the red waters of known market space. 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. To learn more about the power of blue ocean strategy, visit blueoceanstrategy. To go on, talking about strategy, kim and mauborgne also define the term in their book as they write that. Based on a study of 150 strategic moves spanning more than 100 years. The sustainability and renewal of blue ocean strategy creating blue oceans is not a static achievement but a dynamic process. Each of the six principles in blue ocean strategy expressly addresses how to.
Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. 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. Value innovation strategy canvas four actions framework six paths. Everyday low prices and free delivery on eligible orders. Once a company creates a blue ocean and its powerful performance consequences are. 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 strategy is a set of systematic tools that use an analytical framework to allow companies to break away from the red ocean of bloody competition and create a blue ocean of uncontested market spaces in which their competition is irrelevant. How to create uncontested market space and make the competition irrelevant w. Reviewing the blue ocean strategy universiteit twente. 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. The creation of blue oceans is about driving costs down while simultaneously driving value up for buyers. To join the free indie business book club, click here. Chan kim and renee mauborgne in 2005 from harvard business school. This strategy targets six principles that can be used in every organization so that they can arrive at a successful development and fulfilment of new markets.
Summary of the first four chapters of the international bestseller blue ocean strategy. What is blue ocean strategy about blue ocean strategy. For app developers we help make the competition irrelevant. Blue ocean strategy presents a systematic approach to making the competition irrelevant and outlines principles and tools any organization can use to create and capture their own blue oceans. Blue ocean strategy is a strategy that advice companies to go to a new market, which interest customers and avoid competition from the existing market. Instead of focusing solely on the moment a customer purchases a book as the.
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. This allows you to understand where the competition is currently investing, the factors the industry currently competes on in products, service, and delivery, and what. Value innovation is a new way of thinking about and executing strategy that results in the creation of a blue ocean. 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. It is the intersection between these analytic techniques and the six principles of formulating. Together, they define the underlying philosophy of blue oceans. 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. Strategy canvas the strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. 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.
Blue ocean strategy summary click here to read this article. Blue ocean strategy formulation the four principles of. View notes blue ocean strategies summary from mgmt 430 at university of washington. 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. Blue ocean strategies summary blue ocean strategies a. Is it possible to apply blue ocean strategy for tourism. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. 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.
Value innovation strategy competes in an uncontested market space. Strategy execution for blue oceans requires significant change and a well thought out process contributed by every level of the company. Blue ocean strategy workshop at disted hospitality campus. 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.
Chapter 1 summary this is the first chapter of blue ocean strategy. Red ocean strategy blue ocean strategy compete in exiting market space create uncontested market. 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. Innovation has a key role on this matter, but not only. There are four guiding principles for the successful formulation of blue ocean strategy.
Jul 28, 2018 the strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. Blue ocean strategy is a growth strategy framework focused on the idea of creating an uncontested market spacei. Achieved via the delivery of features that have a highest marginal benefit to customer needs. They are the authors of blue ocean strategy, which has sold over 3. Comparative of red ocean and blue ocean the first highlighted case from the blue ocean strategy book is the cirque du soleil. Chan kim and renee mauborgne in the indie business book club. Blue ocean strategy is the most successful book on business masterplanning 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.
It captures the current state of play in the known market space. One of the first shows was titled we reinvent the circus. 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 a book published in 2005 and written by w.
The term of blue ocean appears when kim and mauborgne 2005 tried to define a new. Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. Blue ocean strategy is the most successful book on business masterplanning the economist. Blue ocean strategy how to create uncontested market space. The six principles of blue ocean strategy this figure highlights the six. Subsequent chapters introduce the principles that drive the successful formulation and implementation of blue ocean strategy and explain how they, along with the analytics, are applied in action. The second part describes the four principles of blue ocean 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.
Blue ocean strategy proposes that businesses can have more success by creating a blue ocean, rather than trying to compete in the red ocean. Blue ocean strategy is a bad book, but it is not your usual bad book. If followed correctly those principles the mentioned risks are attenuated. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades. Click here to download the blue ocean strategy summary pdf. May 26, 2015 summary of the first four chapters of the international bestseller blue ocean strategy. The on the blue ocean strategy essay 1969 words 8 pages. This blog article is a overview of some of the key points of the book by w. An introduction to blue ocean strategy mba knowledge base. Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. It is about creating and capturing uncontested market space, thereby making the competition irrelevant. The six paths framework is a core strategic tool used in blue ocean strategy.
Blue ocean strategy, strategic thinking, red ocean, innovation, concept. The process sounds very much like how bos is used every day in the business world because not surprisingly, people in practically any industry ask similar questions. According to kim and mauborgne, blue ocean strategy challenges companies to break out of the. Essay about blue ocean strategy 825 words bartleby.
Blue ocean streagety chapter 1 chapter1summary this is. There are six basic approaches to reconstruct market boundaries, also. There are six basic approaches to reconstruct market boundaries, also known as six paths framework. The blue ocean strategy seems to be a perfect solution for present companies to become sustainable successful. Pdf the business players always compete for competitive advantages to. They research for around over 20 years and sum up a theory of blue ocean. Blue ocean strategy globalization, entrepreneurship and. Jun 08, 2007 the six principles of blue ocean strategy risk factor each principle attenuates evaluation principles risk factor each principle attenuates formulation principles 8. Blue ocean strategy formulation the four principles of strategy formation click here to read this article. Blue ocean strategy is a marketing theory and the title of a book published in 2004 written by. Blue ocean strategy is about value innovation in general, in which no emphasis is put on reducing the speed to market. Download a pdf of this article and check back next tuesday for how to see your leadership reality. 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 six paths framework in formulating blue ocean strategy. These four formulation principles address how an organization can create blue oceans by looking across the six conventional boundaries of competition six. 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. 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. Keywords blue oceans, value innovation, four action framework, strategy. Once a company creates a blue ocean and its powerful performance consequences are known, sooner or later imitators appear on the horizon. The blue ocean strategy is base on the realization that a much more. This short article examines the many ways blue ocean strategy bos can be used to create a better educational system. Companies should instead look for new market space and ways to reinvent the industry. The bluest ocean strategy for emerging ict business. How to create uncontested market space and make competition irrelevant, is a market space that is undeveloped, and untapped by competitors.
Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. To create a blue ocean strategy, organizations must be committed to value innovation. The evolution of blue ocean strategy vivechan international journal. This book builds on and extends this work by providing a narrative arc that.
Further the blue ocean strategy aims to create new best practice rule by breaking the existing value cost trade off, thereby creating uncontested market space, thus making the competition irrelevant. Blue ocean strategies a summary blue ocean strategy is a business strategy book first published in 2005 and. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. The four pillars of blue ocean leadership insead knowledge. I wish i could say my own pursuit of enlightenment led me to chan kim and renee mauborgnes masterpiece on embracing and leveraging difference. Apr 03, 2010 six principles of blue ocean strategy formulation principles execution principles 1.
One key point of blue ocean strategy is how to create value and how to make customer comfortable and willing to pay for it. Some strategic planning models are based on theories that dont quite pan out during gotomarket executions. Blue ocean strategy is the title of a book published in 2005 and written by w. View the entire blue ocean leadership series here w. This framework is very innovative, as its principles challenge the conventional business strategy principles of fighting competitors headon.
To break from competition, a organization has to reconstruct the market boundary which is the first and foremost principle in creating blue ocean strategy. 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. Expertise in saas deployment to the accounting profession and small to medium sized business owners, blue ocean principles works with vendors to create strategies that increase user adoption and partnerships to support growth initiatives. 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 space that is filled. Leadership and management in international context tutor. Blue ocean strategy workshop at disted hospitality campus this short article examines the many ways blue ocean strategy bos can be used to create a better educational system. Aug 28, 2012 blue ocean strategy is about value innovation in general, in which no emphasis is put on reducing the speed to market.