By doing this they made the competition irrelevant, creating and capture new demand for a service not currently available on the market. Made by group d of the minor global trendwatching 2015. They research for around over 20 years and sum up a theory of blue ocean. Characteristics of a good blue ocean strategy collaborat, india blue ocean strategy uses three characteristics to determine a viable strategy. Blue ocean strategy is a book published in 2005 and written by w.
This blog article is a overview of some of the key points of the book by w. 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. This article describes how to break free of these red ocean traps. Netflix created uncontested marketing space by selling tv shows over the internet which no one else was currently doing. The most detailed book summary of blue ocean strategy by w.
Blue ocean strategy formulation the four principles of. Pdf examining the emergence and evolution of blue ocean. Blue ocean strategy is a strategy that advice companies to go to a new market, which interest. Tru group inc blue ocean strategy belongs in the dead sea. How to create uncontested market space and make competition irrelevant, is a market space that is undeveloped, and untapped by competitors. They represent businesses that may not be around today, or werent around until they came on to the scene. In order to unlock a blue ocean, a companys strategic profile should clearly show a strong focus, stand apart from competition, and have a clearly understood tagline that communicates the strategy. 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. Chan kim and renee mauborgne in 2005 from harvard business school. Management can and should be visionary in formulating strategy. Meet the blue ocean strategy summary by roadmap planner team.
It was built on the notion of creating new markets where competition is irrelevant and the opportunity to grow and be profitable is unlimited. 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. 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. A company will have more success, fewer risks, and increased profits in a blue ocean market. Over the last several decades, product development efforts have seen unacceptably high new. Value innovation strategy competes in an uncontested market space. 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. Chapter 1 summary this is the first chapter of blue ocean strategy. Pdf blue ocean strategy download full pdf book download.
Pdf blue ocean strategy bos is a management concept which prescribes that organizations, rather than. The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. Mauborgne the seminal book blue ocean strategy has sold over 3. 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. 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. All in all, blue ocean strategy is a book worth reading. Traditional competitive strategy vs blue ocean 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. The concept of blue ocean is based on the idea that the business universe is made up.
The blue ocean strategy reader goodreads share book. How to create uncontested market space and make the competition irrelevant, w. When we think of competition between companies like coke and pepsi or walmart and costco, we think of competitors fighting to get the biggest share of. Chan kim and renee mauborgne in the indie business book club. 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 space that is filled. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. How to create uncontested market space and make the competition irrelevant. Red ocean strategy blue ocean strategy compete in exiting market space create uncontested market. An introduction to blue ocean strategy mba knowledge base. The analysis shows that the bos concept exhibits several characteristics which makes it highly.
Theyve progressed every year since to 15th in 2005. Blue ocean strategy promises to change the destructive cycle of market crowding. Blue ocean strategy is a landmark idea founded by w. This book is not the victory of an idea but of a friendship that we have found more. 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. How to create uncontested market space and make the competition irrelevant at. Innovation, new market space and creating demand are central characteristics. Characteristics of a good blue ocean strategy collaborat,india blue ocean strategy uses three characteristics to determine a viable strategy. One is to launch completely new industries, as ebay did with online auctions. Buy blue ocean strategy, expanded edition revised ed. You may or may not agree with the central philosophy, but you will be inspired. While this came in appendix a in the book, this is a good time to cover three industries with repeated blue ocean creation. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was. 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.
What is blue ocean strategy about blue ocean strategy. The blue ocean strategy develo pment approach kim, mauborgne. How to create uncontested market space and make the. But its much more common for a blue ocean to be created from within a red. How to create uncontested market space and the make competition irrelevant 2005. Blue ocean strategy, expanded edition harvard business publishing. 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.
Summary of the first four chapters of the international bestseller blue ocean strategy. Furthermore the blue ocean strategy was awarded with. Pdf the study deals with the blue ocean strategy bos that offers users a framework for making uncontested market space and. These citations may not conform precisely to your selected citation style.
Pdf the potential value created with a new product or service provided by a firm is given by the difference between its. The structure can be created or recreated by the steps taken by players in the market. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of strategy and international management at insead. Blue ocean strategy and sustainability for strategic.
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. This book brings the best of those articles together all in one place. Pdf the influence of blue ocean strategy on organizational. What is the difference between red and blue 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. It is a marketing theory from the similarlynamed book that was published in 2005 and became a perennial. 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. This 2005 book is aimed at anyone interested in pursuing the authors blue ocean. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. 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 blue ocean strategy book has been sold over 3,5 million times, was published in 43 languages and is a bestseller across five continents. Please use this display as a guideline and modify as needed. Pdf harvard business school press blue ocean strategy.
Using blue ocean strategy to reduce new product failure. In this article you will learn how to make your competition irrelevant and have sales and profit. How to create uncontested market space and enter your mobile number or email address below and well send you a link to download the free kindle app. 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. Summary capter 1 4 of blue ocean strategy by lauri di. Its authors, insead professors w chan kim and renee mauborgne, continued their steady progress up the thinkers50 list, finishing second to christensen this year. 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. Buyer value is lifted by raising and creating elements the industry has.
How to create uncontested market space and make the competition irrelevant pdf by w. He is known as coauthor of the 2005 book blue ocean strategy. The seminal book blue ocean strategy has sold over 3. Then you can start reading kindle books on your smartphone, tablet, or computer no kindle device required. Blue ocean strategy is a business strategy book, first published on february 3, 2005 by the harvard business school press. The strategy canvas provides a highly visual tool to help look at future options. Blue ocean strategy including examples and pdf download. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Blue ocean strategy can be found on amazon blue ocean strategy.
Pdf harvard business school press blue ocean strategy rajeh. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. 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. Chan kim and renee mauborgne is an outofbox kind of breakthrough book, that gets the best out of you. Recognized as one of the most iconic and impactful strategy books ever written, blue ocean strategy, now. The authors ask readers what is the best unit of analysis of profitable growth.
Blue ocean idea index the blue ocean idea index is a simple but robust test demonstrating how the sequence of utility, price, cost, and adoption form an integral whole to ensure commercial success through blue ocean strategy. The original bos book from 2005 kim and mauborgne 2005b has. Pdf a decisionanalytic approach to blueocean strategy. The authors use the metaphor of the blue ocean as a direct contrast to red oceans. The book titled blue ocean strategy is not helpful to management dont buy it and if you already have it dump it. Chan kim born 1952 is a koreanborn business theorist, professors of strategy and management at insead, and codirector of the insead blue ocean strategy institute in fontainebleau, france. 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 chapter 14 the four action framework chapter two. The main goal of a company in this market is to beat competitors. In order to unlock a blue ocean, a companys strategic profile should clearly show a strong focus, stand apart from competition, and have a clearly.
890 712 940 647 996 1519 1260 718 1118 59 577 1075 712 839 454 1318 130 1156 51 287 1065 6 409 1345 118 569 548 616 536 622 1095 460 899 1247 1426 419 479 2 18 131 810 1287 1141 1014 258 129