How to create uncontested market space and the make competition irrelevant 2005. The six principles of blue ocean strategy this figure highlights the. A landmark work that upends traditional thinking about strategy, this bestselling book charts a bold new path to winning the future. Blue ocean strategy formulation the four principles of. Value innovation strategy canvas four actions framework six paths. The next two parts of the book cover these two categories of principle respectively, in addition to the application of tools and. The six principles show how to reconstruct market boundaries, focus on the big. While this came in appendix a in the book, this is a good time to cover three industries with repeated blue ocean creation. List out your factors, and map them out on the blue ocean strategy canvas. The first principle of blue ocean strategy is to reconstruct market boundaries to break from the competition and create blue oceans. Is it possible to apply blue ocean strategy for tourism. In their book blue ocean strategy first published in 2015, business theorists and professors of strategic management w.
In their 2017 new york times bestselling book, blue ocean shift, kim and. Furthermore the blue ocean strategy was awarded with. If you are a student of business mba, then this top strategy book by michael porter is a mustread. Blue ocean strategies a summary blue ocean strategy is a business strategy book first published in 2005 and. 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.
View notes blue ocean strategies summary from mgmt 430 at university of washington. Those who want to create a blue ocean strategy for their company must focus on value innovation that makes the competition irrelevant by the simultaneous pursuit of differentiation and low cost, thus creating a leap in value for the customers and an uncontested market space for the company. Made by group d of the minor global trendwatching 2015. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of. 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 drive the process. Essay about blue ocean strategy 825 words bartleby. The on the blue ocean strategy essay 1969 words 8 pages. Select five or six of the blue ocean ideas that you brainstormed above. 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. Alltoooften, educators are slow to adopt new ideas from business and apply them to academia but here is one story we especially would like to share with you. You may or may not agree with the central philosophy, but you will be inspired. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. 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.
Renew blue ocean as much as possible and remove any renewal risk. 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. Get the strategic sequence right reduce business model risk executive principles 5. This is the first book on a strategy that revolutionized the way companies looked. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. 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 strategy is a bad book, but it is not your usual bad book. Blue ocean strategy is the most successful book on business masterplanning. This blog article is a overview of some of the key points of the book by w. What is blue ocean strategy about blue ocean strategy. Chan kim and renee mauborgne in their book blue ocean strategy.
Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. By reading blue ocean strategy and applying its concepts. To learn more about the power of blue ocean strategy, visit blueoceanstrategy. A lot has been written about it and i would have said practically everything had been said about it until i looked up the book on amazon to see the current price. 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. Reconstruct market boundaries reduce search risk 2. Choose five or six red ocean strategies that i listed above, or a few that you come up with on your own. 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.
The six paths framework in formulating blue ocean strategy are 1 look across alternative industries, 2 look across strategic groups within industry, 3look across buyer groups, 4 look across complementary product and service offerings, 5look across the functionalemotional orientation of an industry and 5look across time to shape trends. Blue ocean strategy can be found on amazon blue ocean strategy. The blue ocean strategy approach to strategy is based on six principles that cater for the major risks of a new market creation project. 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. 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. The only reason more big companies dont set sail for them, they suggest. There are six main principles that guide companies through the formulation and execution of their blue ocean strategy in a systematic risk minimizing and opportunity maximizing manner. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. For app developers we help make the competition irrelevant. Strategy canvas four actions framework errc grid six paths framework. 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. An introduction to blue ocean strategy mba knowledge base. 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 marketing theory and the title of a book published in 2004 that was. Maximizes opportunityminimizes risk mitigates risk increases odds of success 7. It also explain the benefit of value innovation concept to strategy. As we see more and more businesses using blue ocean strategies to adapt to changing times, some innovators and trailblazers in education are seeing the light as well. The seminal book blue ocean strategy has sold over 3. In this article you will learn how to make your competition irrelevant and have sales and profit. 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. Red oceans are all the industries in existence today the known market space. 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. 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. 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. It is the intersection between these analytic techniques and the six principles of formulating.
How to reinvent your business blue ocean strategy by w. Summary of the first four chapters of the international bestseller blue ocean strategy. The first four principles address blue ocean strategy formulation. Provides stepbystep process provides a stepped process for implementation gives management an alternative to traditional strategies 6. 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. Also, they serve as essential pointers about their future strategy. The strategy canvas provides a highly visual tool to help look at future options. The six principles of blue ocean strategy formulation principles 1. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future.
Chan kim and renee mauborgne 2006 blue ocean strategy has been described as a must read for all business students. 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. How to create uncontested market space and make competition irrelevant, is a market space that is undeveloped, and untapped by competitors. All these principles can serve all sorts of companies, no matter the industry they are in. It is being published in a recordbreaking 44 languages and is a w. The second part describes the four principles of 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. Chan kim and renee mauborgne in the indie business book club. Consider this your guide to creating uncontested market spaceand making the competition irrelevant. All in all, blue ocean strategy is a book worth reading. This book brings the best of those articles together all in one place.
Blue ocean strategy is about value innovation in general, in which no emphasis is put on reducing the speed to market. Part one describe the principles of blue ocean strategy including the used analytical tools and used framework. Focus on the big picture, not the numbers reduce planning risk 3. Together, they define the underlying philosophy of blue oceans. Formulation principles reconstruct market boundaries focus on the big picture, not the numbers reach beyond existing demand get the strategic sequence right 2. Blue ocean principles business development consulting. Discover in a practical and fast way what are the principles of this strategy to. Six principles of blue ocean strategy formulation principles execution principles 1. Blue ocean strategies summary blue ocean strategies a. Our aim is to make the formulation and execution of blue ocean strategy as systematic and actionable as competing in the red waters of known market space. Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w.
The premise of the book is that companies can succeed by creating. The expanded edition of blue ocean strategy, is metaphorical, witty, and almost biblical in its commentary of the bloody waters of competitive red ocean market forces. He is known as coauthor of the 2005 book blue ocean strategy. Based on an eponymously titled book, this strategy argues that cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. Chan kim and renee mauborgne introduced a concept that serves as a strategical framework for establishing business opportunities and surviving in the future.
Chan kim and renee mauborgne, professors at insead. Albeit it is very complex and hard to read, it is well worth the effort. 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. To join the free indie business book club, click here. Execution principles overcome key organizational hurdles build execution into strategy the four actions framework. I wish i could say my own pursuit of enlightenment led me to chan kim and renee mauborgnes masterpiece on embracing and leveraging difference. Blue ocean strategy including examples and pdf download. The six principles show how to reconstruct market boundaries, focus on the.
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