To read a more lengthy, indepth article on the blue ocean strategy go to. Chan kim is a professor of strategy and management at insead and. Closing the gap between blue ocean strategy and execution. We assess the profit and growth consequences of blue oceans and discuss why. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. The result is that in more and more industries, supply is. Competing in overcrowded industries is no way to sustain blue. 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. After reading you will understand the basics of this powerful strategy tool what is the blue ocean strategy.
Creating blue oceans cirque du soleil created uncontested new market space that made the competition. It calls for profiles for leaders that are tailored to the very different. Apr 03, 2010 blue ocean strategy summary and examples 1. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Hbr s 10 must reads on strategy download ebook pdf, epub. Value innovation strategy competes in an uncontested market space. Achieved via the delivery of features that have a highest marginal benefit to customer needs. The seminal book blue ocean strategy has sold over 3. The continuing success of your companys strategy depends on it. The logic behind blue ocean strategy parts with traditional models focused on competing in existing market space. Blue ocean strategy introduces analytical tools to minimize risk. Blue ocean strategy is a book published in 2005 and written by w.
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 a method of creating business strategy of the enterprise, which was described in a book by w. While this came in appendix a in the book, this is a good time to cover three industries with repeated blue ocean creation. May 30, 2017 t his month, we read blue ocean strategy by w. 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. Want more secrets and tricks like the blue ocean strategy. Blue ocean strategy is a difficult concept to apply in practice. This article explains the blue ocean strategy, developed by w. From theory to practice case solution, red oceans and blue oceans. You can follow blue ocean strategy and leadership on twitter and facebook and visit the website here.
Blue ocean strategy is a marketing theory in which a business enters a market that has little or no competition. In this article, we present the concept of blue ocean strategy and describe its defining characteristics. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. Red oceans are all the industries in existence today, they are increasi. Blue ocean strategy bos is a management concept which. 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. How to create uncontested market space and make competition irrelevant has had a huge impact worldwide. Blue oceans are about exploring noncustomers and creating new. Red ocean strategy create uncontested market space make the competition irrelevant create and capture new demand compete in existing market space beat the. I hereby declare that i worked out the diploma work asit applied. Blue ocean strategy how to create uncontested market. This book brings the best of those articles together all in one place.
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 can be applied across sectors or businesses. Blue ocean leadership is designed to be applied across the three distinct management levels. While the book is aimed primarily at large, traditional businesses, our book club members managed to. How to create uncontested market space and make the competition irrelevant w. Five steps to making a blue ocean shift blue ocean shift. Our multimedia cases and interactive exercises are designed to help you build a deeper understanding of key blue ocean strategy concepts, developed by worldrenowned professors chan kim and renee mauborgne. The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. 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. Most leadership efforts focus on cognitive and behavioral skills, such as empathy, selfawareness, and selfregulation. Blue ocean strategy how to create uncontested market space and make the competition irrelevant facilitators. Click the link above or the picture below to read more. This blog article takes a look at what kind of roi some companies have achieved by implementing a blue.
Children, the mainstay of the circus audience, preferred. 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. Competing in overcrowded industries is no way to sustain. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. Chan kim and renee mauborgne, professors at insead.
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. In this article you will learn how to make your competition irrelevant and have sales and profit. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. 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. The real opportunity is to create blue ocean for uncontested market space. This site is like a library, use search box in the widget to get ebook that you want. The blue ocean strategy explains how to guide your business across seas with less competition and greater profitability. Blue ocean strategy including examples and pdf download. Most prominently, since 2009 the malaysian government has. While competitionbased red ocean strategy assumes that an industrys. The idea in brief the core idea the idea in practice putting the idea to work 1 article summary 2 blue ocean strategy a list of related materials, with annotations to guide further exploration of the articles ideas and. 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 based on the idea that every enterprise can achieve higher profit by creating new demand in noncompetitive market so called blue ocean. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. 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. Click download or read online button to get hbr s 10 must reads on strategy book now. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w.
Blue ocean shift is the essential followup to blue ocean strategy, the classic 3. The real blue ocean strategy opportunity is to create blue oceans of. This blog article is a overview of some of the key points of the book by w. Nov 04, 2018 want more secrets and tricks like the blue ocean strategy. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades. Watch this video to understand the essence of blue ocean strategy, the worldwide bestseller written by worldrenowned professors chan kim and renee mauborgne. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Blue ocean strategy is a customerled strategy focusing on existing customers. Blue ocean strategy is the 2015 update to the classic business strategy text of the same name originally published in 2005. The market universe is composed of two types of oceans. Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to. Companies pursue blue ocean strategies to make competition irrelevant.
Blue ocean pedagogical materials, used in over 2,800 universities and in almost every country in the world, go beyond the standard casebased method. Chan kim is a professor of strategy and management at insead and codirector of the insead blue ocean. To join the free indie business book club, click here. This post defines blue ocean strategy and explores a few examples while pointing out the five main risks of pivoting in the search for a. Examining the emergence and evolution of blue ocean strategy.
Indeed, it can be argued that managers failure to realize the differences between red and blue ocean strategy lies behind the dif. Article from hbrs 10 must reads on strategy including featured article what is strategy. These will be phrased as myths that are then debunked. Blue ocean strategy is referred to a market for a product where there is no competition or very less competition. To read a more lengthy, in depth article on the blue ocean strategy go to. Chan kim and renee mauborgne is an outofbox kind of breakthrough book, that gets the best out of you. List the factors the customer cares about, and current dimensions of competition. Chan kim and renee mauborgne in the indie business book club. 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. The case entitled how to implement blue ocean strategy challenges participants to apply key concepts of blue ocean strategy implementation to overcome key organizational and management hurdles while leading a strategic shift. The strategy focuses on moving away from an existing market and seaching for new markets. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition.
Blue ocean shift and the international bestseller blue ocean strategy, which is recognized as one of the most iconic and impactful strategy books ever written. The blue ocean strategy is a business book that has become mandatory for modern managers by proposing an organized structure to identify and implement differentiation in any industry and help you grow your business faster. 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 challenges companies to break out of the red ocean of bloody competition by creating uncontested market space that makes the competition irrelevant. Chan, mauborgne, renee, mauborgne, renee a download it once and read it on your kindle device, pc, phones or tablets. It should be noted that most new business launches today are launches in the red ocean domain.
Blue ocean strategy hbr bestseller harvard business publishing. Blue ocean strategy ends with ten cognitive traps that can deter you from creating blue oceans or that jeopardize your execution. It requires the right research, patience and focus. Drawing on more than a decade of new work, kim and mauborgne show you how to move beyond competing, inspire your peoples confidence, and seize new growth, guiding you step by step through how to take your organization. Competing in overcrowded industries is no way to sustain high performance. 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.
1104 204 178 496 600 488 1222 686 84 696 1078 178 1022 1159 1251 154 216 318 1506 1560 1309 703 1076 316 1648 22 321 331 1336 226 1002 1119 976 305 534 445 481 1274 851 1382 712 277 100 1145 178 984 960