A company will have more success, fewer risks, and increased profits in a blue ocean market. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. Blue ocean strategy is a theory explained in a 2005 book by w. Chan kim and renee mauborgne in their book blue ocean strategy. The authors use the metaphor of the blue ocean as a direct contrast to red oceans. Blue ocean strategy is referred to a market for a product where there is no competition or very less competition. List the factors the customer cares about, and current dimensions of competition.
Chan kim and renee mauborgne, professors at insead. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. Click the link above to read the key concepts and everything you want to know about the blue ocean strategy. Blue ocean strategy powerpoint templates present better. How to create uncontested market space and make the competition irrelevant, a book by professors w. But its not always clear how to create a blue ocean strategy for yourself. Blue ocean strategy introduces analytical tools to minimize risk. 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. To make your life easier, you can download these free templates that have been. How to create uncontested market space and make the competition irrelevant. How is blue ocean strategy different from a classic differentiation strategy. 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. Blue ocean strategy can be applied across sectors or businesses. Pdf impact of blue ocean strategy on organizational.
Blue ocean strategy is a powerful framework for finding new business opportunities. Reviewing the blue ocean strategy university of twente student. Blue ocean strategy displays an orderly way to deal with making the challenge unessential and traces standards and instruments any organization can use to make and catch their blue seas. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Pdf blue ocean strategy how to create uncontested market. There is ample opportunity for growth tbat is both. Pdf on apr 1, 2012, ibrahim rawabdeh published blue ocean strategy as a tool for improving a companys marketing function. Blue ocean strategy executive summary linkedin slideshare. Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. 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, 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 pool.
The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. Before we dive into blue ocean strategy examples, lets get clear on what a. Jul 17, 2018 free blue ocean strategy powerpoint templates now that youve done the hard work of identifying your blue ocean strategy, its time to present it to top management. How to create uncontested market space and make the competition irrelevant is an amazing book that shares some advanced techniques, how to approach the market and reinvent it through innovative thinking.
Blue ocean strategy bos is a strategy concept which was introduced in the mid2000s by. Blue ocean strategy is where a company creates a completely new market space or market category. In this article you will learn how to make your competition irrelevant and have sales and profit. The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. In executing a blue ocean strategy, how can a company overcome various organizational hurdles and build trust and commitment among people who work for or with the company. 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. 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. Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group. 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. How to create uncontested market space and make the competition irrelevant is an amazing book that shares some advanced techniques, how to approach the. Blue ocean strategy page 1 main idea the best way to beat your competition is, in fact, to stop competing against them. Boss studies show that successful companies that created blue oceans pursued both differentiation and low cost simultaneously, in stark contrast to porters influential view porter 1985 of pursuing either low cost or differentiation strategies to avoid.
How to create uncontested market space and make the competition irrelevant pdf by w. Companies should instead look for new market space and ways to reinvent the industry. Blue ocean strategy is a book published in 2005 and written by w. Blue ocean strategy, harvard business school press, 2005. An introduction to blue ocean strategy mba knowledge base. Learn the concepts of tipping point leadership and fair process that ensure effective execution of blue ocean strategy. Blue ocean strategy is the 2015 update to the classic business strategy text of the same name originally published in 2005. How to create uncontested market space and the make competition irrelevant 2005.
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. This templates provides iconography and diagrams to work with the blue ocean strategy tools. 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 strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. Blue ocean strategy is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Jul 16, 2015 the blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. Blue ocean shift is the essential followup to blue ocean strategy, the classic 3. Pdf blue ocean strategy download full pdf book download. While blue ocean strategy helped to identify new avenues for strategic success, it fell short on providing the actual steps needed to jump from a crowded marketplace into the fabled blue ocean of the title. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. 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. 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.
This template enables managers and executives to create a detailed and comprehensible blue ocean strategy. Blue ocean strategy including examples and pdf download. 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. Embraced by organizations and industries worldwide, blue ocean strategy is a global phenomenon that has sold over 4 million copies, is published in a recordbreaking 46 languages and is a bestseller across five continents. Based on a study of 150 strategic moves, spanning more than 100 years across 30 industries, the authors, chan kim and renee mauborgne show that lasting success comes not.
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. Blue ocean strategy chapter 14 the four action framework chapter two. Chan kim, renee mauborgne blue ocean strategy, expanded edition. Each tool has a slide for the description and application within the strategy analysis. This new market space is created by launching new offerings, with the aim being to make the competition irrelevant so that an organization can grow, uncontested, at least in the beginning.
How to create uncontested market space and make the competition irrelevant pdf blue. Their iconic and impactful books, blue ocean strategy and blue ocean shift, provide a systematic approach to making the competition irrelevant and tools any organisation can use to shift from. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. 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. 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. Drawing on more than a decade of new work, kim and mauborgne show you how to move beyond competing, inspire. Blue ocean strategy is a marketing theory in which a business enters a market that has little or no competition. You can think of blue ocean strategy as finding space that has yet to be explored by any other business, meaning it is a land full of opportunity. Blue ocean strategy mi major reference works wiley.
It is about creating and capturing uncontested market space, thereby making the competition irrelevant. The database and research have continued to expand. 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. When expressed through a value curve, an effective blue ocean strategy has three complementary qualities. Blue ocean strategy powerpoint template is a professional and modern presentation for the description or explanation of the blue ocean strategy theory.
In other words, when you go headtohead against rivals for a share of the existing market, this is like competing in a red ocean. Blue ocean strategy formulation the four principles of. Oct 18, 2018 the most important characteristic of blue ocean strategy bos is that it rejects the fundamental principles of conventional strategy. The structure can be created or recreated by the steps taken by players in the market. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades. Based on a study of 150 strategic moves spanning more than 100 years. Value innovation strategy competes in an uncontested market space. The risks of following a blue ocean strategy the adaptive. 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. What is blue ocean strategy about blue ocean strategy. Pdf blue ocean strategy as a tool for improving a companys. Applying the six paths framework to reconstruct market. On the basis of a reconstructionist view of strategy, blue ocean strategy argues that industry structure can be changed endogenously by the strategic actions of micro.
Apple observed the flood of illegal music file sharing that began in the late 1990s, enabled by file sharing programs such as napster, kazaa, and limewire. With the launch of itunes, apple unlocked a blue ocean of new market space in digital music that it has now dominated for more than a decade. In red oceans, industry boundaries are defined and accepted, and the. Pdf epub mobi ebooks are now available on this website. This strategy makes the competitors irrelevant and the main driver of the companys profits are the decreased costs. Library of congress cataloginginpublication data kim, w. The concept of blue ocean strategies is new in the business world as it was first published in 2005 in the bookmanual blue ocean strategy, by w. Blue ocean strategy is a business marketing strategy of creating a new market space for its services and products. The strategy focuses on moving away from an existing market and seaching for new markets. Sep 24, 2017 in 2005, blue ocean strategy, expanded edition.
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. Examining the emergence and evolution of blue ocean strategy. First published in 2005, it was updated and expanded with fresh content in 2015. The real opportunity is to create blue ocean for uncontested market space. How to create uncontested market space and make the competition irrelevant is the 2015 update to the classic business strategy text of the same name originally published in 2005. It is based on the view that market boundaries and industry structure are not a given and can be. Pdf this study is based on the pros and cons of the blue ocean strategy bos that offers users a framework for creating uncontested market space and. To understand red ocean strategy let us begin by defining blue ocean strategy. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. The idea in brief the best way to drive profitable growth. Blue ocean strategy powerpoint template slidemodel. To aid you in completing this step and all the other steps in. This new market space is created by launching new offerings, with the aim being to make the competition irrelevant so that an organization can grow, uncontested, at.
Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. This, in turn, requires the alignment of the value, profit, and people propositions of a strategy in support of pursuing both differentiation and low cost. Free blue ocean strategy powerpoint templates now that youve done the hard work of identifying your blue ocean strategy, its time to present it to top management. Chan kim and renee mauborgne, develops and explains how to beat the competition by reaching beyond it into new unexplored markets. The insead blue ocean strategy open enrolment programme is based on the groundbreaking work developed by insead professors chan kim and renee mauborgne. Specifically, these new markets give a company a very high competitive advantage as well as low pricecost pressure. Red oceans represent all the industries in existence todaythe known market space. By that we can see that there is a lot of interest by the business people and academics around the world about that subject.
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