Reviewing the blue ocean strategy university of twente student. Reconstruct market boundaries reduce search risk 2. Renew blue ocean as much as possible and remove any renewal risk. They didnt compete in the same market from the conventional circus. Blue ocean strategy is a book published in 2005 and written by w. How to create uncontested market space and the make competition irrelevant 2005. List the factors the customer cares about, and current dimensions of competition.
Aug 28, 2012 blue ocean strategy is about value innovation in general, in which no emphasis is put on reducing the speed to market. The concept of blue ocean is based on the idea that the business universe is made up. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. The first highlighted case from the blue ocean strategy book is the cirque du soleil. Tools and frameworks for creating and capturing blue oceans it is constructed to create a new value curve and when you apply the four actions framework to the strategy canvas of your industry, you get a. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Leadership and management in international context tutor. 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. Blue ocean strategy introduces analytical tools to minimize risk. The first four principles address blue ocean strategy formulation. Blue ocean strategy proposes that businesses can have more success by creating a blue ocean, rather than trying to compete in the red ocean. 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.
Reviewing the blue ocean strategy universiteit twente. Blue ocean strategy, the global phenomenon that has sold over 4 million copies and is recognized as one of the most iconic and impactful strategy books ever written, argues that cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. Blue ocean principles offers marketing management and strategy consulting for technology vendors looking to expand marketshare in the accounting community. Blue ocean strategies summary blue ocean strategies a. The six principles of blue ocean strategy risk factor each principle attenuates evaluation principles risk factor each principle attenuates formulation principles 8. His book blue ocean strategy, coauthored with renee mauborgne, has sold 3. Based on 15 years of research, the authors used 150 successful strategic moves spanning 120 years of business history and across 30. In their 2017 new york times bestselling book, blue ocean shift, kim and mauborgne share how to put these practical marketcreating tools into practice to move from red to. Made by group d of the minor global trendwatching 2015.
Also, they serve as essential pointers about their future strategy. This framework is very innovative, as its principles challenge the conventional business strategy principles of fighting competitors headon. The premise of the book is that companies can succeed by creating. Blue ocean strategy is a growth strategy framework focused on the idea of creating an uncontested market spacei. You may or may not agree with the central philosophy, but you will be inspired.
In their 2017 new york times bestselling book, blue ocean shift, kim and mauborgne share how to put these practical marketcreating tools into practice to move from red to blue oceans and to do so in a way that people own and. The six principles of blue ocean strategy formulation principles 1. Summary of the first four chapters of the international bestseller blue ocean strategy. The first principle of blue ocean strategy is to reconstruct market boundaries to break from the competition and create blue oceans. 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. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of. 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 strategies are more about risk minimization and less about risk taking. How to create uncontested market space and make competition irrelevant, is a market space that is undeveloped, and untapped by competitors. In china, six is considered a lucky number because it represents flow and wealth. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w.
Comparative of red ocean and blue ocean the first highlighted case from the blue ocean strategy book is the cirque du soleil. It is a coalition dedicated to helping organizations bridge the gap between strategy design and strategy delivery. It is based on the view that market boundaries and industry structure are not a given and can be. Furthermore the blue ocean strategy was awarded with. Chan kim and renee mauborgne in their book blue ocean strategy. The six principle of blue ocean strategy should serve as essential pointers for every company thinking about its future strategy if it aspires to lead the increasingly overcrowded business world. As discussed in the two previous articles, blue ocean strategy bos has been with us in its formalised state since 2004 and since then it has been much talked about, often idealised and sometimes maligned. 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. Instead of focusing solely on the moment a customer purchases a book as the. Blue ocean strategy how to create uncontested market space.
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. Focus on the big picture, not the numbers reduce planning risk 3. The seminal book blue ocean strategy has sold over 3. 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. Innovation, new market space and creating demand are central characteristics. Pdf blue ocean strategy download full pdf book download.
Specifically, chapter 7 introduces what we call tipping point leadership. To join the free indie business book club, click here. Blue ocean strategy formulation the four principles of. Sports loves six, in cricket balls in an over, tennis games that must be won in a set, and volleyball player positions. It is being published in a recordbreaking 44 languages and is a w. 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.
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. Blue ocean strategy is the 2015 update to the classic business strategy text of the same name originally published in 2005. Strategy is an action that managers take to attain one or more of the organizations goals. They represent businesses that may not be around today, or werent around until they came on to the scene. Based on their research, kim and mauborgne found six approaches to reconstructing market boundaries which, collectively, are known as the six paths framework. 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. What is distinctive about blue ocean strategy as a.
For app developers we help make the competition irrelevant. Based on a study of 150 strategic moves spanning more than 100 years. Built on common strategic patterns of blue ocean strategy. It is about creating and capturing uncontested market space, thereby making the competition irrelevant. There are two principles involved by which companies can reduce organizational. In the worlds most popular sport, soccer, the perfect aerodynamic ball is made up of 20 hexagons and 12 pentagons. Blue ocean strategy is about value innovation in general, in which no emphasis is put on reducing the speed to market. Blue ocean strategy chapter 14 the four action framework chapter two. 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. Together, they define the underlying philosophy of blue oceans. Keywords blue oceans, value innovation, four action framework, strategy. To break from competition, a organization has to reconstruct the market boundary which is the first and foremost principle in creating blue ocean strategy.
Blue ocean strategy, strategic thinking, red ocean, innovation, concept. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. Tipping point leadership shows managers how to mobilize an organization to overcome the key organizational hurdles that block the implementation of a blue ocean strategy. This book brings the best of those articles together all in one place. 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 strategy globalization, entrepreneurship and. Apr 28, 2020 in china, six is considered a lucky number because it represents flow and wealth. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. 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. 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. 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. May 30, 2017 to join the free indie business book club, click here. Jul 28, 2018 blue ocean strategy was coined by professors w.
The evolution of blue ocean strategy ims engineering college. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. What is blue ocean strategy about blue ocean strategy. 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. Blue ocean strategy, page 47 based on their research, kim and mauborgne found six approaches to reconstructing market boundaries which, collectively, are known as the six paths framework. Blue ocean strategies a summary blue ocean strategy is. Get the strategic sequence right reduce business model. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition.
One thing that is very difficult to argue with, however, is the attractiveness of a concept that offers access to. Chapters 7 and 8 turn to the principles that drive effective execution of blue ocean strategy. Reach beyond existing demand reduce scales reisk 4. Chan kim and renee mauborgne in the indie business book club. Blue ocean strategy and sustainability for strategic management. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking.
We hope that it acts as a catalyst for readers to get things done. This book builds on and extends this work by providing a narrative arc that draws. Strategy canvas the strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. May 26, 2015 summary of the first four chapters of the international bestseller blue ocean strategy. About us blue ocean principles business development.
Working with our partners at thinkers50 we have created email protected it showcases some of the very best thinkers in the field of strategy and beyond. 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. Kicking off the book with four analytical tools that promise to help firms find and exploit untapped markets, the authors offer a step by step approach, comprised of six principles, on how to break away from the competition of red oceans and execute a blue ocean strategy. The next two parts of the book cover these two categories of principle respectively, in addition to the application of tools and. Blue ocean strategy is a landmark idea founded by w. Strategy can also be defined as a general direction set for the company and its various components to achieve a desired state in the future. Based on 15 years of research, the authors used 150 successful strategic moves spanning 120 years of business history and across 30 industries to. 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. Chan kim and renee mauborgne, professors at insead. This blog article is a overview of some of the key points of the book by w. The blue ocean strategy approach to strategy is based on six principles that cater for the major risks of a new market creation project. An introduction to blue ocean strategy mba knowledge base. All in all, blue ocean strategy is a book worth reading. One of the first shows was titled we reinvent the circus.
The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. The strategy canvas provides a highly visual tool to help look at future options. 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. 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. Blue ocean strategy including examples and pdf download. Go into field to explore the six paths to create blue ocean. Value innovation strategy competes in an uncontested market space. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. 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. It is only when all members of a company are aligned around a strategy and support it that the company is able to execute its strategy effectively and efficiently. There are six basic approaches to reconstruct market boundaries, also known as six paths framework.
It is being published in a recordbreaking 44 languages and is a bestseller across five continents. The six paths framework in formulating blue ocean strategy. 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. 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 principles business development consulting. Blue ocean strategy is a bad book, but it is not your usual bad book. The simplicity principle and why six is the perfect number. Blue ocean strategy and sustainability for strategic. Blue ocean strategy is scary for many employees, as it typically requires people to move out of their comfort zones and fundamentally change the way they have worked in the past. It was built on the notion of creating new markets where competition is irrelevant and the opportunity to grow and be profitable is unlimited. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. Eight key points of blue ocean strategy heres the essence of blue ocean strategy captured in eight key points. The blue ocean strategy is base on the realization that a much more valuable for firms.
957 681 1448 1613 1014 1315 1141 1023 1153 28 1439 294 1112 910 9 1276 810 1458 357 160 1564 36 1371 222 553 335 7 1284 102 612 651 802 889 912 499 1472 267 286 505 861 89