Tagline, a term thats close to the heart of marketing folks is also evolved from the strategy canvas of the blue ocean strategy. The four pillars of blue ocean leadership insead knowledge. How to create uncontested market space and make the competition irrelevant, a book by professors w. Essay on blue ocean strategy a marketing book 1053 words. Typically, companies in the red ocean pursue incremental improvements for customers through either low cost or differentiation. The book succeeds in showing how businesses, can outdo their competitors.
A summary in slides pdf of blue ocean strategy, how to create. 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. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Jun 28, 2009 so you ask, what is blue ocean strategy. 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. He is known as coauthor of the 2005 book blue ocean strategy. It is based on the view that market boundaries and industry structure are not a given and can be. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. It is all about devising and acquiring the uncontested market forum by spawning a new demand.
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. Blue ocean is a slang term for the uncontested market space for an unknown industry or innovation. Salient features of blue ocean are that it is a non competitive strategy, in a sense that it refuses to compete in traditional sense. Chan kim and renee mauborgne started talking about these concepts of blue oceans and red oceans and creating uncontested market spaces that rendered the competition irrelevant. Mar 06, 2016 insead blue ocean strategy institute 58,831 views.
The buffer blog has exposed a blue ocean strategy by harnessing acumen for research and compiling data. Chan kim and renee mauborgne, develops and explains how to beat the competition by reaching beyond it into new unexplored markets. Man 320f exam 2 blue ocean strategy flashcards quizlet. Build execution into strategy in the book the authors describe each of the six principles in detail and draw the attention of the readers to the relationship between the success stories and the strategy that is being formulated and executed which kim and mauborgne termed as blue ocean strategy. How to create uncontested market space and make the competition irrelevant, a. Pdf blue ocean strategy as a tool for improving a companys. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. As it expands and evolves over time, its core business was shifted towards to support the national go global policy, work with those chinese enterprises that choose to go global. Blue ocean strategy continues to grow in popularity across the world and is widely used in practice and in mba and executive education classrooms. Companies should instead look for new market space and ways to reinvent the industry. 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. This blog article takes a look at what kind of roi some companies have achieved by implementing a blue ocean strategy by w.
Value innovation is a new way of thinking about and executing strategy that results in the creation of a blue ocean. The authors ask readers what is the best unit of analysis of profitable growth. Blue ocean strategy is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. Pdf on apr 1, 2012, ibrahim rawabdeh and others published blue ocean strategy as a tool for improving a companys marketing function. The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. The tenyear expanded edition of blue ocean strategy came out this year.
Price and features, for example, tend to be common ones. Some strategic planning models are based on theories that dont quite pan out during gotomarket executions. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group. That is the ultimate ocean a for profit company wants to stay afloat in even if it takes transition from blue to red or somewhere in the middle.
A pathbreaking strategy known as blue ocean strategy is a pacifist marketing scheme and is considered a strategic planning tool for assessing a business. To achieve a blue ocean strategy that actually attracts male patients, you need to change how you create demand among men for your healthcare services and how you reach them. The book mostly borrows from a range of over 140 strategic marketing moves within a period of over a century. It was built on the notion of creating new markets where competition is irrelevant and the opportunity to grow and be profitable is unlimited. Blue ocean strategy is the title of a book published in 2005 and written by w.
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. Just think of its initial blue ocean shift in book retailing that separated it from the pack with its offering of the largest selection of books in the world. Value innovation value innovation is created in the region where a companys actions favorably affect both its cost structure and its value proposition to buyers. The first example of blue ocean strategy comes from computer games giant, nintendo, in the form of the nintendo wii. 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. It helps the company in make huge profits as the product can be priced a little steep because of its. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. The nintendo wii launched in 2006 and at its heart is the concept of value. Considering that this japanese method has been in existence for 6070 years now, it is interesting to know that originators of hoshin kanri have given equal or even more emphasis on strategy execution way back then. Ive highlighted some of the issues with best practices before, but the main one to. After reading you will understand the basics of this powerful strategy tool what is the blue ocean strategy.
Pdf blue ocean strategy how to create uncontested market. The strategy aims to capture new demand, and to make competition irrelevant by introducing a product with superior features. What is blue ocean strategy about blue ocean strategy. Charles modlin, founder of the cleveland clinics minority mens health center. Essay on blue ocean strategy a marketing book 1053. 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. Understanding blue ocean strategy is essential if you want to stand out in. Put simply the blue ocean strategy is innovating in ways which make your competition irrelevant. The structure can be created or recreated by the steps taken by players in the market. Very few businesses reach the transparency level that buffer openly embraces. Achieved via the delivery of features that have a highest marginal benefit to customer needs. How to create uncontested market space and the make competition irrelevant 2005. Blue ocean strategy is a landmark idea founded by w. Challenging the conventional competition based approaches to business strategy, it focuses on.
Value innovation value innovation places equal emphasis on value and innovation. Blue ocean strategy for your learning business exploring the 6. 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. A good strategy has a clearcut and easy to communicate tagline. 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. Jun 21, 2007 blue ocean strategy red ocean strategy 2. Blue ocean strategy was first founded in 2007 in hong kong as a service provider in executive search, outplacement, interim management for multinational corporations in asia pacific. Among them, published in 2005 by harvard business school press, blue ocean strategy has probably received highest attention and acclamation. Well, it all started in the late 1990s when two insead professors w. Blue ocean strategy how to create uncontested market. Value innovation value innovation is created in the region where a companys actions favorably affect both its cost structure and its value proposition to. This blog article is a overview of some of the key points of the book by w. May 16, 2016 i have recently been reading up on the rise and huge success of netflix and how they used the blue ocean strategy to change the rules of the game.
An introduction to blue ocean strategy mba knowledge base. Find out today what blue ocean strategy can do for you. Jul 04, 2016 blue ocean strategy is the bestselling book which created a worldwide revolution in business strategy. When expressed through a value curve, an effective blue ocean strategy has. 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. Blue ocean strategy is the bestselling book which created a worldwide revolution in business strategy. Blue ocean strategy ist eine methode zur entwicklung dauerhaft profitabler geschaftsmodelle aus dem bereich des strategischen managements. I have recently been reading up on the rise and huge success of netflix and how they used the blue ocean strategy to change the rules of the game. A blue ocean exists when there is potential for higher profits, as there is now competition or irrelevant competition.
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. Since, the industries are in a state of non existence, there is absolutely no relevance of peer. 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. It is about creating and capturing uncontested market space, thereby making the competition irrelevant. Blue ocean strategy blue ocean strategy introduction blue ocean strategy is a marketing book by w. When expressed through a value curve, an effective blue ocean strategy has three complementary qualities. When you learn about the salient features of kanri strategy execution process, you will be able to appreciate this. Chan kim and renee mauborgne heres the strategy create new markets.
Blue ocean strategy makes companies to come out of ocean of bloody competition by creating market space which is uncontested and that makes the completion irrelevant. 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. 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. This article explains the blue ocean strategy, developed by w. Sep 23, 2014 to put blue ocean leadership in action, we adapt the analytic tools and frameworks of blue ocean strategy to the leadership context. It reduced costs by using plastic instead of metal, for example, and reducing the parts in each watch from 150 to 50. The strategic edge of a blue ocean thinker insead knowledge. Unless the customers and employees arent informed about the strategy, its unlikely they would appreciate them. Since, dividing up existing demand and benchmarking the competitors, blue ocean strategy is. Chan kim and renee mauborgne in their book blue ocean strategy. 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. Value innovation strategy competes in an uncontested market space. 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. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant.
This blog article takes a look at what kind of roi some companies have achieved by implementing a blue. Chan kim and renee mauborgne, professors at insead, back in 2004. Since, dividing up existing demand and benchmarking the competitors, blue ocean strategy is regarding grow demand and break away from the competition. Top 7 salient features of kanri strategy execution process. Blue ocean strategy how to create uncontested market space and make the competition irrelevant boston. The creation of blue oceans is about driving costs down while simultaneously driving value up for buyers. This was a blue ocean opportunity staring them in the face. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was. The blue ocean strategy is nearly ten years old, but it is still a very effective and very successful strategy that allows to transform unconventional ideas into successful innovative strategies. Blue ocean strategy uses three characteristics to determine a viable strategy. The authors use the metaphor of the blue ocean as a direct contrast to red oceans.
Put simply the blue ocean strategy is innovating in. The concept of blue ocean is based on the idea that the business universe is made up. 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. 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. Blue ocean strategy and sustainability for strategic. Two of the most salient, interesting trends in the post1950 u. Value innovation is the cornerstone of blue ocean strategy 1 and it is the strategic move that allows a company to create a blue ocean. Jul 16, 2015 the blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. One of my favorite business books is called blue ocean strategy, written by w. The database and research have continued to expand.
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. Blue ocean strategy including examples and pdf download. Characteristics of a good blue ocean strategy canopus. Extreme openness is another blue ocean technique that buffer uses on their open blog. May 27, 2014 the buffer blog has exposed a blue ocean strategy by harnessing acumen for research and compiling data. The blue ocean strategy bos is the strategic organizational approach that is based on the principle that companies should not engage in a competitive struggle but that. Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. The only ocean the company seems to be swimming on currently is the ocean of profit.
Chan kim and renee mauborgne in their book blue ocean. Sep 24, 2017 blue ocean strategy requires a different mindset. Similarly, while the circus industry focused on featuring stars, in the mind of the. 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. Blue ocean strategy how to create uncontested market space. Main page contents featured content current events random article donate to wikipedia. Blue ocean strategy and sustainability for strategic management. I wish i had bought starbucks stocks a year ago or even few months ago. Blue ocean strategy is a book published in 2005 and written by w. The result is the leadership canvas, the leadership profile and the blue ocean leadership grid all of which are grounded in acts and activities, easy to understand and communicate and that engage more people in an. 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.
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