Blue ocean strategy, create new markets and leave the. The goal of a blue ocean strategy is for organizations to find and develop blue oceans uncontested, growing markets and avoid red oceans overdeveloped, saturated markets. Sep 24, 2017 blue ocean strategy requires a different mindset. Blue ocean strategy is a strategy that advice companies to go to a. They want to provide a way to break out of standard thinking and maximize benefits. While the blue ocean strategy allows a company to pursue a new. Blue ocean strategy is a strategy that advice companies to go to a new market, which interest. This allows people to embrace new strategy willingly. Blue ocean strategy is a new way of thinking a movement away from a competitive mindset. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world.
Various types of strategies are used in strategic management such as red ocean strategy, blue ocean strategy, green ocean strategy, purple. The green ocean innovation model international journal of. In any industry, no matter how competitive it is, a company can create a blue ocean of uncontested market space. Blue ocean strategic sequence for blockbuster alvin lopez, student university, united states, member the bos sequencing for blockbuster is as follows.
To start thinking outside of the box, you might want to create a blue ocean strategy. Blue ocean strategy and the dynamic nature of business. Blue ocean strategy is innovative, and it creates a. When you break the bounds of existing industries, competition becomes irrelevant.
Blue ocean strategy business model blue ocean tools and. Blue ocean strategic sequence for blockbuster forum. Blue ocean strategy is a book published in 2005 and written by w. The concept of ideal strategy and its realization using white ocean. But, contrary to the approach of ocean strategy, should do so by thinking about market environment shifts, how these could impact customer sets, and whether those. In blue oceans, demand is created rather than fought over. Blue ocean strategy and the dynamic nature of business strategies. There is ample opportunity for growth that is both profitable and rapid. The logic behind blue ocean strategy is counterintuitive. This blog article is a overview of some of the key points of the book by w. They represent businesses that may not be around today, or werent around until they came on to the scene. After reading you will understand the basics of this powerful strategy tool what is the blue ocean strategy.
How to create uncontested market space and make the. 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. After reading you will understand the basics of this powerful strategy tool. Conventional wisdom asserts that the greater the change, the greater the resources and time you will need to bring about results. 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. Blue ocean strategy is a difficult concept to apply in practice. The insead blue ocean strategy institute is dedicated to extending the research on blue ocean shift, blue ocean strategy, and blue ocean leadership by. Companies pursue blue ocean strategies to make competition irrelevant. 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. Welcome to blue ocean strategy were thrilled to have you on board. This is the holy grail that marketers have been seeking since we began thinking about product differentiation, market segmentation, positioning, and all the. To join the free indie business book club, click here. Red ocean and blue ocean strategies comparison table slidemodel.
The red oceans are the markets where sharks fight for their share, while the blue oceans, competition is irrelevant. A company equals everyone from the top to the front lines. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking away from the competition. Set sail towards your blue ocean jk beteiligung gmbh. Essay on blue ocean strategy a marketing book 1053 words. Chan kim and renee mauborgne in their bestselling book of the same name. The risks of following a blue ocean strategy the adaptive. How to create uncontested market space and make the competition irrelevant. Click the link above to read the key concepts and everything you want to know about the blue ocean strategy. Blue ocean strategy provides a systematic approach to break out of the red ocean of severe competition and make the competition irrelevant by reconstructing market boundaries to create a leap in value for both the company and its buyers. How to create uncontested market space and make the competition irrelevant kim, w. Management can and should be visionary in formulating strategy. Blue ocean idea index boi other companies companies should build their blue ocean strategy in the sequence of utility, price, cost, and adoption, these criteria form an integral whole to ensure commercial success.
Blue ocean strategy order description 1 article summary 2 blue ocean strategy a list of related materials, with annotations to guide further exploration of the articles ideas and applications 11 further reading competing in overcrowded industries is no way to sustain high performance. Innovation, new market space and creating demand are central characteristics. This blog article takes a look at what kind of roi some companies have achieved by implementing a blue ocean strategy by w. This blog article takes a look at what kind of roi some companies have achieved by implementing a blue ocean strategy. Its authors, insead professors w chan kim and renee mauborgne, continued their steady progress up the thinkers50 list, finishing second to christensen this year. A instead of competing in existing industries, blue ocean strategy equips companies with frameworks and analytic tools to create their own blue ocean of. 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. The four actions framework and errc grid tweet after you define the three tiers of non customers, the idea is that you poll these noncustomers and find out what it would take to purchase your product or service. Blue ocean strategy including examples and pdf download. 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. How to create uncontested market space and make the competition irrelevant by w.
Critique of blue ocean strategy by tru group inc strategy consultants ocean strategy, red or blue, belongs in the dead sea. The strategy can transform a current product or idea or create something total new. How does blue ocean strategy differ from red ocean strategy. May 30, 2017 t his month, we read blue ocean strategy by w. Each table is created as powerpoint tables, and are 100% editable. Chan kim and renee mauborgne in their book titled 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.
What is the blue ocean strategy the term blue ocean was coined by two professors w. There have been research on the relationship of these business strategies with innovation performance. Compared with red ocean strategy, blue ocean strategy represents a significant departure from the status quo. The business universe consists of two distinct kinds of. 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. 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, 10. Tru group inc blue ocean strategy belongs in the dead sea. 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. Jul, 2018 our study shows that blue ocean strategy is particularly needed when supply exceeds demand in a market, kim explained in an article on forbes.
Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. A new framework of blue ocean strategy for innovation. Red ocean in blue oceans, demand is created rather than fought over. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. 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 rich blue sea without competitors. Chan kim and renee mauborgne in the indie business book club. Creation of new markets open up new demand sidestep competition making them irrelevant win without fighting. Blue ocean strategy write my essay i need help with my. Revealing the idea of blue ocean strategy, renee mauborgne shares the secret for how to create uncontested market space and make the. What is blue ocean strategy about blue ocean strategy. While lean six sigma is great for optimizing existing processes, it can sometimes inhibit the development of new products and markets.
In this article you will learn how to make your competition irrelevant and have sales and profit. Everyone in an organization must support and be aligned with strategy. It requires the right research, patience and focus. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Value innovation strategy competes in an uncontested market space. 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.
We believe that blue ocean strategy will send you on the right path towards creating your own uncontested space. How to create uncontested market space and make the competition irrelevant, a book by professors w. The book titled blue ocean strategy is not helpful to management dont buy it and if you already have it dump it. The blue ocean strategy document that sinked vp munangagwa.
Blue ocean strategy how to create uncontested market. In their bestselling book, blue ocean strategy, authors w. This allows them to build a viable business model and ensure that a company profits from the blue ocean it is creating. 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 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. I hereby declare that i worked out the diploma work asit applied. 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 blue ocean strategy document that sinked vp munangagwa presentationby professor jonathan moyo. Download it once and read it on your kindle device, pc, phones or tablets. 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.
Study 31 terms blue ocean strategy flashcards quizlet. A company will have more success, fewer risks, and increased profits in a blue ocean market. Blue ocean strategy has helped numerous companies and organisations across the globe to create new market space and achieve pro. This paper presents a methodical and critical analysis of the key elements regarding the strategic management literature and the blue ocean strategy. See comparison between red and blue ocean strategies here in one simple table. How to create uncontested market space and make the competition irrelevant, is very informative.
Furthermore the blue ocean strategy was awarded with. How to create uncontested market space and the make. Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. This 2005 book is aimed at anyone interested in pursuing the authors blue ocean. Its a winwin situation for airbnb because their digital marketing strategy optimizes their own search engine listings allowing for the. Blue ocean strategy is a new way of thinking, a new strategic mindset, a bold new path to winning the future. The real opportunity is to create blue oceans of uncontested market space. Jul 16, 2015 in this article, we will look at 1 what is a blue ocean strategy. Now updated with fresh content from the authors, blue ocean strategy argues that cutthroat. Break out of the red ocean bloodied by shrinking market space and go to blue ocean area. Feb 05, 2014 blue ocean strategy cnn dwitya aribawa.
This article explains the blue ocean strategy, developed by w. Ideal for strategy lectures or strategy analysis introduction, impress your audience with this appealing slide. Both strategies have their own merits and disadvantages when it comes to applying innovation. Blue ocean strategy blue ocean strategy is a strategic move that organizations or individuals use to create new product or ideas. Essay on blue ocean strategy a marketing book 1053 words 5 pages blue ocean strategy blue ocean strategy introduction blue ocean strategy is a marketing book by w. The only thing that i am not very fond of the book is that theres too much repetition in the book until i got bored going through the 230 or so pages. Blue ocean strategy how to create uncontested market space and make the competition irrelevant boston. Blue oceans denote all the industries not in existence today the unknown market space, untainted by competition. Selfmade billionaires ignore the distinction between blue oceans and red oceans. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. How to create uncontested market space and make the competition irrelevant 320. In this article, we will look at 1 what is a blue ocean strategy.
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