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. This book brings the best of those articles together all in one place. The blue ocean strategy is best illustrated by the performance of cirque du soleil. What is blue ocean strategy about blue ocean strategy. Red oceans are all the industries in existence today the known market space. In any industry, no matter how competitive it is, a company can create a blue ocean of uncontested market space. Blue ocean strategy makes companies to come out of ocean of bloody competition by creating market space which is uncontested and that makes the completion irrelevant. Blue ocean shift is the essential follow up to blue ocean strategy, the classic and over 4millioncopy global bestseller by worldrenowned professors chan kim and renee mauborgne. Blue ocean shift is packed with realworld examples of organizations facing the same constraints we all face be they politics, bureaucracy, or limited resources that applied the very tools and process outlined in the book to shift from competi. Blue ocean strategy is a consistent pattern of strategic thinking behind the creation of new markets and industries.
Blue ocean strategy in 2005, renee mauborgne and w. Blue ocean strategy how to create uncontested market space and make the competition irrelevant facilitators. Blue ocean strategy and sustainability for strategic. Dell builttoorder computers in the mid1990s, deli created a blue ocean in a highly. Sep 24, 2017 in 2005, blue ocean strategy, expanded edition. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking away from the competition. The insead blue ocean strategy institute is dedicated to extending the research on blue ocean shift, blue ocean strategy, and blue ocean leadership by. 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. Blue ocean is a slang term referring to the uncontested market space of an. While the book is aimed primarily at large, traditional businesses, our book club members managed to. Chan kim and renee mauborgne in their book titled blue ocean strategy. 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. The real opportunity is to create blue oceans of uncontested market space. An introduction to blue ocean strategy mba knowledge base.
In the red oceans, industry boundaries are defined and accepted, and the competitive. Therefore, in different contexts and to different people, strategy means different things. It is the idea of trying to find market spaces that are free of competitors by creating and caputuring new demand. Blue ocean strategy is a book published in 2005 and written by w. Pdf blue ocean strategy as a tool for improving a companys. Blue ocean strategies on february 12, 2020 blog, b2b strategy and messaging, virtual vp of marketing it can be difficult to succeed with the cutthroat competition in the business environment today. The most appropriate unit of analysis is the strategic move, the set of managerial actions and decisions involved in making a major marketcreating business offering. Welcome to blue ocean strategy were thrilled to have you on board. It requires the right research, patience and focus. By 2003, more than 2 billion illegal music files were being traded every month. Blue ocean strategy case study service nsw 5 at the end of 2012 there were an estimated 380 nsw government shopfronts, 100 call centres, 8,000 phone numbers and 900 web sites that customers needed to select from and navigate through.
They represent businesses that may not be around today, or werent around until they came on to the scene. Blue oceans, in contrast, are defined by untapped market space, demand. Underlying thinking contains little if anything that is new if you redefine just about everything of course you have to have a new model. Blue ocean vs red ocean questions blue ocean vs red. Set sail towards your blue ocean jk beteiligung gmbh.
Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. Pdf on apr 1, 2012, ibrahim rawabdeh and others published blue. Chan kim and renee mauborgne how to create uncontested market space and make competition irrelevant. This blog article takes a look at what kind of roi some companies have achieved by implementing a blue ocean strategy by w. Achieved via the delivery of features that have a highest marginal benefit to customer needs.
The strategy focuses on moving away from an existing market and seaching for new markets. Essay about blue ocean strategy 825 words 4 pages blue ocean strategy paper adel erolsky university of phoenix mkt421 ron rosalik august 25, 2014 blue ocean strategy paper in todays business world, competition is a big concern for nearly every corporation. Essay about blue ocean strategy 825 words bartleby. In red oceans, there is a competitiveadvantage worldview, companies are often driven to outperform rivals and capture greater shares of existing or shrinking market space. 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. Tru group inc blue ocean strategy belongs in the dead sea. Blue ocean strategy page 1 main idea the best way to beat your competition is, in fact, to stop competing against them. Companies pursue blue ocean strategies to make competition irrelevant.
Blue ocean strategy including examples and pdf download. 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. Oct 07, 2018 blue ocean shift is packed with realworld examples of organizations facing the same constraints we all face be they politics, bureaucracy, or limited resources that applied the very tools and process outlined in the book to shift from competi. Specifically, these new markets give a company a very high competitive advantage as well as low pricecost pressure. Pdf harvard business school press blue ocean strategy rajeh. How to create uncontested market space and make the competition irrelevant. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was. Blue ocean strategy is innovative, and it creates a.
Jul 16, 2015 in this article, we will look at 1 what is a blue ocean strategy. 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 systematic way to grow your business without competing renee mauborgne, coauthor of blue ocean strategy and the new. Blue ocean strategy challenges companies to break out of the red ocean of bloody. Jul 28, 2018 blue ocean strategy provides a systematic approach to break out of the red ocean of severe competition and make the competition irrelevant by reconstructing market boundaries to create a leap in value for both the company and its buyers. 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. The seminal book blue ocean strategy has sold over 3. These citations may not conform precisely to your selected citation style. You cannot copy in full or in part any of our full text content and our original ed images without our prior consent. A company will have more success, fewer risks, and increased profits in a blue ocean market. In red oceans, industry boundaries are defined and accepted, and the. Blue ocean strategy write my essay i need help with my. Chan kim and renee mauborgne a onetime accordion player, stilt.
A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. Blue ocean strategy order description 1 article summary 2 blue ocean strategy a list of related materials, with annotations to guide further exploration of the articles ideas and applications 11 further reading competing in overcrowded industries is no way to sustain high performance. What is the blue ocean strategy the term blue ocean was coined by two professors w. Furthermore the blue ocean strategy was awarded with. Blue oceans strategy is the approach that suggests a company is better off searching for ways to play in uncontested market places instead of engaging with competition in existing marketing spaces. 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. Compaq pc servers compag created a blue ocean in 1992 with its prosignia server, which gave buyers twice the file and print capability of the minicomputer at onethird the price. 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. Red ocean in blue oceans, demand is created rather than fought over. This blog article takes a look at what kind of roi some companies have achieved by implementing a blue.
Blue ocean strategy has helped numerous companies and organisations across the globe to create new market space and achieve pro. Howto create uncontested market space and make the competitionirrelevant this is a great books that i think are not only fun toread but also very educational. Creation of new markets open up new demand sidestep competition making them irrelevant win without fighting. While billions of music files were being downloaded each month. We believe that blue ocean strategy will send you on the right path towards creating your own uncontested space. 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. A instead of competing in existing industries, blue ocean strategy equips companies with frameworks and analytic tools to create their own blue ocean of. Innovation, new market space and creating demand are central characteristics. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades. Guillaume nicolas master s program in leadership and management in. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. Although strategy is a buzzword it does lack of a universally accepted definition. By 2003 more than two billion illegal music files were being traded every month.
Since, dividing up existing demand and benchmarking the competitors, blue ocean strategy is. 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. In other words, when you go headtohead against rivals for a share of the existing market, this is like competing in a red ocean. To join the free indie business book club, click here. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. Then, the team must answer the following questions in a written response coversheet and about 5 to 6 pages total for all the 4 questions. The premise of the book is that companies can succeed by creating. 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. The strategy can transform a current product or idea or create something total new. Study 31 terms blue ocean strategy flashcards quizlet.
There is ample opportunity for growth that is both profitable and rapid. Based on a study of 150 strategic moves spanning more than 100 years. 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 competitive. Drawing on more than a decade of new research, blue ocean shift is the definitive guide to help you move beyond competing, inspire your peoples confidence, and. The risks of following a blue ocean strategy the adaptive. Blue ocean strategy is referred to a market for a product where there is no competition or very less competition. Drawing on more than a decade of new research, blue ocean shift is the definitive guide to help you move beyond competing, inspire your peoples confidence, and seize new growth. A systematic way to grow your business without competing renee mauborgne, coauthor of blue ocean strategy and the new book blue ocean shift, on why disrupting an industry.
Chan kim came up with the blue ocean strategy, which tries to find other open markets to sell to, instead of purely focusing on the main market. Value innovation strategy competes in an uncontested market space. 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. After reading you will understand the basics of this powerful strategy tool. In this article, we will look at 1 what is a blue ocean strategy. Blue ocean strategy is a marketing theory in which a business enters a market that has little or no competition. 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. Blue ocean strategy blue ocean strategy is a strategic move that organizations or individuals use to create new product or ideas. Ocean strategy, sustainability, innovation, value, sustainable value, strategic management. How to create uncontested market space and the make. May 30, 2017 t his month, we read blue ocean strategy by w. 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, a book by professors w. Please use this display as a guideline and modify as needed. Using blue ocean strategy to reduce new product failure. Blue ocean vs red ocean questions blue ocean vs red ocean. We love to know how blue ocean strategy, blue ocean shift, and blue ocean leadership is applied around the world by other people and we monitor for blue ocean mentions so we will know if you do not abide by our rules. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. Chan kim and renee mauborgne in their book blue ocean strategy. Chan kim and renee mauborgne in the indie business book club. After reading you will understand the basics of this powerful strategy tool what is the blue ocean strategy.
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