Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. A pathbreaking strategy known as blue ocean strategy is a pacifist marketing scheme and is considered a strategic planning tool for assessing a business. Pdf harvard business school press blue ocean strategy. 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. Competing in overcrowded industries is no way to sustain blue. 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. Eight key points of blue ocean strategy heres the essence of blue ocean strategy captured in eight key points. Blue ocean strategy hbr bestseller harvard business publishing. Blue ocean strategy and its implications for businesses. It is all about devising and acquiring the uncontested market forum by spawning a new demand. Click download or read online button to get hbr s 10 must reads on strategy book now.
Blue ocean leadership is designed to be applied across the three distinct management levels. You can follow blue ocean strategy and leadership on twitter and facebook and visit the website here. Kim and renee mauborgne, blue ocean strategy suggests an organisation should look to create a new demand in an uncontested market space. Value innovation strategy competes in an uncontested market space. Blue ocean strategy including examples and pdf download. In the ten years since the first edition of blue ocean strategy was published, professors kim and mauborgne have had myriad conversations with managers and. Presents a set of analytical tools and frameworks that enable companies to develop blue ocean strategies. Read blue ocean strategy, expanded edition how to create uncontested market space and make the competition irrelevant by w. It should be noted that most new business launches today are launches in the red ocean domain.
Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. Chan kim and renee mauborgne, professors at insead. The strategy canvas outlined in the book is basically a tool to visually show how a company will or has created a blue ocean strategy. To read a more lengthy, in depth article on the blue ocean strategy go to. This blog article is a overview of some of the key points of the book by w. How to create uncontested market space and make the competition irrelevant, a book by professors w. 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.
Sep 24, 2017 in 2005, blue ocean strategy, expanded edition. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Blue ocean strategy is a theory explained in a 2005 book by w. The real blue ocean strategy opportunity is to create blue oceans of. 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. Blue ocean strategy presents a systematic approach to making the competition. Chan kim is a professor of strategy and management at insead and. Blue ocean strategy is a book published in 2005 and written by w. Blue ocean strategies summary blue ocean strategies a. It is used to plot how the current competitors compete in a market space, what factors they compete on and how your company and the competition scores on each key factor. This blog article is part of a series on the book blue ocean strategy by w. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute.
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. List the factors the customer cares about, and current dimensions of competition. View notes blue ocean strategies summary from mgmt 430 at university of washington. The fundamental premise is that most companies fight competitors headtohead in the same space, chasing the same customers with very similar products, creating a bloodyred ocean in their feeding frenzy.
In the ten years since the first edition of blue ocean strategy was published, professors kim and mauborgne have had myriad. Blue ocean strategy how to create uncontested market space. In this article you will learn how to make your competition irrelevant and have sales and profit. Hbr s 10 must reads on strategy download ebook pdf, epub. Specifically, these new markets give a company a very high competitive advantage as well as low pricecost pressure. Blue ocean strategy can be applied across sectors or businesses.
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. 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. Blue ocean strategy is a marketing theory in which a business enters a market that has little or no competition. 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. 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. The premise of the book is that companies can succeed by creating.
Aug 14, 2017 americanborn economist and a business theorist renee mauborgne currently works as a professor for strategy and management theories mis. After reading this book, the author wants to tell us that companies can succeed through creating blue oceans of uncontested market place. 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. Blue ocean strategy introduces analytical tools to minimize risk. Xu spoke very frankly, addressing each question directly and logically, with a strong grasp of the details. 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.
Closing the gap between blue ocean strategy and execution. Chan kim and renee mauborgne, identify mental models that undermine marketcreating strategies. It calls for profiles for leaders that are tailored to the very different. The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. 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. What is distinctive about blue ocean strategy as a theory. Chan kim is a professor of strategy and management at insead and codirector of the insead blue ocean. Most leadership efforts focus on cognitive and behavioral skills, such as empathy, selfawareness, and selfregulation. Some strategic planning models are based on theories that dont quite pan out during gotomarket executions. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. How is blue ocean strategy different from a classic differentiation strategy.
Blue ocean strategy is referred to a market for a product where there is no competition or very less competition. Jan 14, 2015 blue ocean strategy is a new way of thinking, a new strategic mindset, a bold new path to winning the future. This framework addresses not only the analytic aspects behind the creation of blue ocean strategy but also the allimportant human aspects of how to bring an organization and its people on this journey with a willingness to execute these ideas in. Is it possible to apply blue ocean strategy for tourism. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. Blue ocean strategy is the 2015 update to the classic business strategy text of the same name originally published in 2005. The continuing success of your companys strategy depends on it. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. We believe that an understanding of blue ocean strategy will help todays companies as they struggle to thrive in an. Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to.
Competing in overcrowded industries is no way to sustain high performance. Five steps to making a blue ocean shift blue ocean shift. Blue ocean strategy how to create uncontested 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. 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. Kim has an executive role at the insead blue ocean strategy institute as a codirector, and she is a distinguished fellow at insead, where she teaches the different blue ocean strategies and management techniques as we. 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. The real opportunity is to create blue ocean for uncontested market space. Hbrs 10 must reads on strategy including featured article what is strategy. Blue ocean strategy is a concept that has been pioneered by insead professors, w.
The strategy focuses on moving away from an existing market and seaching for new markets. Kim has an executive role at the insead blue ocean strategy institute as a codirector, and she is a distinguished fellow at insead, where she teaches the different blue ocean strategies and management techniques. 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. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Click the link above or the picture below to read more. Blue ocean strategy is a method of creating business strategy of the enterprise, which was described in a book by w. This site is like a library, use search box in the widget to get ebook that you want. Rather than competing within the confines of the existing industry or.
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