The premise of the book is that companies can succeed by creating. Renee mauborgne is the insead distinguished fellow and a professor of strategy at insead, one of the worlds top business schools. All in all, blue ocean strategy is a book worth reading. Principles of marketing blue ocean strategy 07 free download as powerpoint presentation. The blue ocean strategy concept has been adopted as a means to implement various initiatives to achieve national key result areas. To address these questions, we turn to the strategy canvas, an analytic framework that is central to value innovation and the cre ation of blue oceans. Principles of marketing blue ocean strategy 07 strategic. Companies pursue blue ocean strategies to make competition irrelevant. Jun 21, 2007 blue ocean strategy red ocean strategy 2.
The diagnostic framework is somewhat of a situational analysis. In a blue ocean you change the playing field of strategy. First and foremost on their list is a tool used to break out of competition and make competition irrelevant called the strategy canvas. 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. Blue ocean strategy 1creating blue oceans 3 2 analytical tools and frameworks 23 part two. 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.
You may or may not agree with the central philosophy, but you will be inspired. The blue ocean strategy bos is the strategic organizational approach that is based on the principle that companies should not engage in a competitive struggle but that. In case if you havent, it was published in 2005 and was the top worldwide best selling business and management book by w. The blue ocean strategy recommends that a successful business should be able to develop a new demand in an uncontested markets rather than compete directly with other competitors in the industry. Companies, like individuals, often have a tough time translating thought into action whether in red or blue oceans. Value innovation strategy competes in an uncontested market space. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was. May 14, 2011 the blue ocean strategy four actions framework also called eliminate reduce raise create grid errc grid is a complementary tool to the strategy canvas. Value innovation is a new way of thinking about and executing strategy that results in the creation of a blue ocean. Blue ocean strategy is a strategy that advice companies to go to a new market, which interest. 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.
Formulating blue ocean strategy 3reconstruct market boundaries 47 4focus on the big picture, not the numbers 81 5reach beyond existing demand 101 6 get the strategic sequence right 117 fmkim. Here is a catalogue of blue ocean strategy pedagogical materials, used in over 2,800 universities and in almost every country around the 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. Four actions framework template blue ocean framework miro. Blue ocean strategy can be found on amazon blue ocean strategy. How to create uncontested market space and make the competition irrelevant, w. A crucial tool in this odyssey is the fouractions framework. After reading you will understand the basics of this powerful strategy tool what is the blue ocean strategy. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. Our theoretical framework, as briefly described in the introduction calls on the.
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. In an audiobook that challenges everything you thought you knew, w. Their iconic and impactful books, blue ocean strategy and blue ocean shift, provide a systematic. Essay about blue ocean strategy 825 words bartleby. The creation of blue oceans is about driving costs down while simultaneously driving value up for buyers. What is blue ocean strategy about blue ocean strategy. 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. Blue ocean strategy is a book published in 2005 and written by w. Chan kim et renee mauborgne, chercheurs au blue ocean strategy institute.
How to create uncontested market space and make the competition irrelevant unabridged by kim, w chan, mauborgne, renee isbn. They provided a powerful framework for questioning incumbent business models. However, there is a large difference between these two approaches. Blue ocean strategy formulation the four principles of. Blue ocean strategy available for download and read online in other formats. Blue ocean strategy execution click here to read this article. I wish i could say my own pursuit of enlightenment led me to chan kim and renee mauborgnes masterpiece on embracing and leveraging difference. Pdf blue ocean strategy as a tool for improving a companys. Achieved via the delivery of features that have a highest marginal benefit to customer needs. 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. It provides guidelines to identify new competing factors and therefore be more creative during later phases of innovation and design a new buyer value curve. The strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. Blue ocean strategy and sustainability for strategic.
Blue ocean strategy chapter 14 the four action framework chapter two. But, compared with red ocean strategy, this can be especially difficult for blue ocean strategy as it represents a significant departure from the status quo. 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. Yet, as this influential and immensely popular book shows, these hallmarks of competitive strategy are not the way to create profitable growth in the future. 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 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. Chen, information systems theory and practices blue ocean strategy. By creating this plot, you can find imbalances in your strategy, such as only raising and creating which leads to overengineering and trying to be the best or only eliminating and reducing which leads to mere price competition. Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute.
The concept of blue ocean is based on the idea that the business universe is made up. Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to. The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. Blue ocean strategy is a landmark idea founded by w. This post defines blue ocean strategy and explores a few examples while pointing out the five main risks of pivoting in the search for a. Professor of mis school of business administration gonzaga university spokane, wa 99258 usa. Blue ocean strategy actionable tools and frameworks.
The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. The process sounds very much like how bos is used every day in the business world because not surprisingly, people in practically any industry ask similar questions. Analysis plandata usedkey assumptions analysis plan. Everyday low prices and free delivery on eligible orders. The blue ocean strategy offers users a framework for creating uncontested market. The strategy canvas provides a highly visual tool to help look at future options. On blue ocean strategy by kim and mauborgne the business model canvas is a perfect extension of the analytical tools presented by kim and mauborgne. Blue ocean strategy introduces analytical tools to minimize risk.
Sep 26, 2016 the strategy canvas provides a highly visual tool to help look at future options. Blue ocean strategy and sustainability for strategic management. 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. Companies should instead look for new market space and ways to reinvent the industry. Chan kim and renee mauborgne in their bestselling book of the same name. She is also codirector of the insead blue ocean strategy institute. Bos four actions framework errc grid innovating now. This short article examines the many ways blue ocean strategy bos can be used to create a better educational system. List the factors the customer cares about, and current dimensions of competition. Apr 25, 2018 to move forward with the model, and thus the companys new blue ocean strategy, the use of the strategic canvas can be one of the most crucial aspects of the planning of the strategy. Four hurdles to strategy execution blue ocean strategy.
To join the free indie business book club, click here. Value innovation value innovation is created in the region where a companys actions favorably affect both its cost structure and its value proposition to buyers. 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. This tool is the central diagnostic and action framework for building a compelling blue ocean strategy. The four actions framework aids in eliminating the tradeoff between differentiation and low cost within a. The canvas can be split between a diagnostic framework and an action framework. The four actions framework and errc grid tweet after you define the three tiers of non customers, the idea is that you poll these noncustomers and find out what it would take to purchase your product or service. A good blue ocean strategy has items in each of the four grids.
Venture strategies have been used by large multinationals for decades. Chan kim and renee mauborgne in the indie business book club. How to create uncontested market space and make the competition irrelevant pdf by w. Miro has multiple exporting options, like saving to pdf. Chen, information systems theory and practices red ocean vs. Pdf an exploratory empirical verification of blue ocean strategies. Pdf neither the industries nor the companies are doing all smart things. Pdf this paper reports on a study on sales management organization in a survey of. The six paths framework in formulating blue ocean strategy. To move forward with the model, and thus the companys new blue ocean strategy, the use of the strategic canvas can be one of the most crucial aspects of the planning of the strategy. Value innovation strategy canvas four actions framework six paths. The challenge of execution exists, of course, for any strategy. Chan kim and renee mauborgne assert that tomorrows leading companies will succeed, not by battling their rivals for market share in the bloody red ocean of a shrinking profit pool, but by creating blue oceans of untapped new market spaces ripe for growth. Blue ocean strategy workshop at disted hospitality campus this short article examines the many ways blue ocean strategy bos can be used to create a better educational system.
Jul 16, 2015 the blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. In this article you will learn how to make your competition irrelevant and have sales and profit. 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. Blue ocean strategy is a bad book, but it is not your usual bad book. Although it was developed with the intention to motivate the private sectors and industries to create new demands by venturing into areas of greater potential, this concept has been tailored and adopted into. In their 2017 new york times bestselling book, blue ocean shift, kim and. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. Value innovation value innovation is created in the region where a companys actions favorably affect both its cost structure and its value proposition to. Blue ocean strategy is a growth strategy framework focused on the idea of creating an uncontested market spacei. Achetez et telechargez ebook blue ocean strategy, expanded edition. Your productservice must raise and create customer value gain and simultaneously reduce and eliminate features or services that are less valued, or not valued at all, the customer pain.
Value innovation value innovation places equal emphasis on value and innovation. Using key blue ocean tools for strategy rethinking of a sme. Theirs is not the typical business management books vague call to action. The blue ocean strategy framework has evolved from value. 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. Kim and mauborgne four action framework tool of blue ocean strategy implemented by indian. Blue ocean strategy is a consistent pattern of strategic thinking behind the. 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. Today, we tell you something about an interesting chaper in osterwalders book about the blue ocean strategy. The structure can be created or recreated by the steps taken by players in the market. The blue ocean strategy four actions framework also called eliminate reduce raise create grid errc grid is a complementary tool to the strategy canvas.
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. This framework is very innovative, as its principles challenge the conventional business strategy principles of fighting competitors headon. Built on common strategic patterns of blue ocean strategy. This post defines blue ocean strategy and explores a few examples while pointing out the five main risks of pivoting in the search for a rich blue sea without competitors. Mar 03, 2009 10 lessons i learned from blue ocean strategy i believe most people have at least heard of this book.
It was built on the notion of creating new markets where competition is irrelevant and the opportunity to grow and be profitable is unlimited. May 30, 2017 to join the free indie business book club, click here. Chan kim and renee mauborgne is used to reconstruct buyer value elements in crafting a new value curve or strategic profile. The four actions framework is used to help create value innovation and break the valuecost trade. 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. Aug 28, 2012 blue ocean strategy is often compared to venture strategy. This paper aims to give the main guidelines for strategic implementation of blue oceans strategy and how this kind of strategy is a part of turnaround. Use our free blue ocean 4 actions framework template to create, collaborate on with your. Each chapter is extremely in depth and contains real actions steps to take, and includes a wealth of flow charts and graphs which are not only helpful, but easy to understand.
Chan kim and renee mauborgne have created a comprehensive set of analytic tools and frameworks to create blue oceans of new market space. Together, they wrote a bestselling book blue ocean strategy. Chan kim and renee mauborgne 2006 blue ocean strategy has been described as a must read for all business students. To break the tradeoff between differentiation and low cost in creating a new value curve, the framework poses four key questions, shown in the diagram, to challenge an industrys strategic logic. These factors were identified by studied smes as the first step and. Pdf blue ocean strategy download full pdf book download. A fouraction framework for blueocean innovation the. To break the tradeoff between differentiation and low cost in creating a new value curve, the framework poses four key questions, shown in the diagram, to challenge an industry. The risks of following a blue ocean strategy the adaptive. Blue ocean strategy workshop at disted hospitality campus. This article explains the blue ocean strategy, developed by w.
It requires the right research, patience and focus. 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. The on the blue ocean strategy essay 1969 words 8 pages. Strategy canvas four actions framework errc grid six paths framework. Blue ocean strategy including examples and pdf download. The four actions framework aids in eliminating the tradeoff between differentiation and low cost. Reviewing the blue ocean strategy university of twente student.