The premise of the book is that companies can succeed by creating. Blue ocean strategy bos is a management concept which. How to blog your way out of the red ocean and into the blue. 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. Blue ocean strategy and value innovation digital cio competing in over crowded industries is no way to sustain competitive advantage.
Blue ocean strategy is the 2015 update to the classic business strategy text of the same name originally published in 2005. Blue ocean strategy, expanded edition harvard business publishing. The blue ocean strategy is a business book that has become mandatory for modern managers by proposing an organized structure to identify and implement differentiation in any industry and help you grow your business faster. How to create uncontested market space and make the competition irrelevant. Based on a study of 150 strategic moves spanning more than 100 years. When companies are willing to challenge the functional emotional orientation of their industry, they often find new market space. Over the past 10 years we and gavin fraser, a blue ocean strategy network expert, have interviewed hundreds of people in organizations to understand where. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy. Blue ocean strategy including examples and pdf download. Chan kim and renee mauborgne wrote a bestselling book, blue ocean strategy, which has been translated into 43 languages. The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. It requires the right research, patience and focus.
Nor am i the first person to think about the wii strategy as clearly blue ocean. Manager mussen bei sich anfangen leseprobe harvard business. 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. Importance of the blue ocean strategy to a business. Companies pursue blue ocean strategies to make competition irrelevant. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. Written by the business worlds new gurus, blue ocean strategy continues to. 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. A business model describes the rationale of how an organization creates, delivers, and captures value economic, social, cultural, or other forms of. Blue ocean strategy is a strategy that advice companies to go to a new market, which interest customers and avoid competition from the existing market. The on the blue ocean strategy essay 1969 words 8 pages. Blue oceans denote all the industries not in existence todaythe.
The concept of bos was introduced in 2004 in a harvard business. The collection you need to create more blue oceans. How to create uncontested market space and make the competition irrelevant w. The challenge of execution exists, of course, for any strategy. The real opportunity is to create blue ocean for uncontested market space. This blog article takes a look at what kind of roi some companies have achieved by implementing a blue ocean strategy by w. Leave the statistics aside and see the big picture 3. Public sector application and research, including the application of blue ocean shift, blue ocean strategy, and blue ocean leadership to governments and nonprofits. 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 changed the field of strategy and the language of business with their pathbreaking blue ocean strategy, a model for creating uncontested markets that unlock new demand and new opportunities for growth. Once a company has developed a blue ocean strategy with a profitable business model, it must execute it. If you like what you are reading, mention this blog in your post or link to this blog by copying and pasting this html code into your own blog or web template. It allows an organization to visualize the competitive factors and the current state of play of those factors within an industry and then compares the organizations offering with those of the industry in general. How to develop a blue ocean strategy with customer instinct. Blue ocean strategy introduces analytical tools to minimize risk. In this summary, well give a synopsis of the key concepts, tools and tips from the book. How to blog your way to a blue ocean strategy castleford. Stop competing in overcrowded industries and focus instead on making the competition irrelevant. 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.
For example, the influential business school blog poets and quants refers to km. They are the authors of blue ocean strategy, which is recognized as one of the most iconic and impactful strategy books ever written. For those of you who havent encountered this concept, blue ocean strategy is the idea, as espoused by two insead academics and consultants, that firms will reap much greater rewards from seeking out a competitive space where they encounter few or no competitors. Typically, companies in the red ocean pursue incremental improvements for customers through either low cost or differentiation. The rapid pace of innovation and change in recent years has led scholars and executives to search for an approach to strategy that is more dynamic than harvard professor michael porters classic five forces. 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. Red oceans represent all the industries in existence todaythe known market space. Blue ocean strategy is a book published in 2005 and written by w. Social sector application and research, including such topics as how blue ocean strategy can be applied in the developing world to mitigate poverty and improve education and health. One of the most successful efforts to do so is the book blue ocean strategy, by. Competing in overcrowded industries is no way to sustain. The strategy canvas is a critical diagnostic and action tool utilized in the blue ocean strategy process.
Renee mauborgne of insead explains how a landmark idea is evolving. Companies, like individuals, often have a tough time translating thought into action whether in red or blue oceans. Blue ocean strategy has become a staple of business school reading lists since it was first published in 2005. In this article you will learn how to make your competition irrelevant and have sales and profit. Tru group inc blue ocean strategy belongs in the dead sea. 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.
The blue ocean strategy is all about challenging the industry focus. The real opportunity is to create blue oceans of uncontested market space that makes the competition irrelevant. 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. The authors discuss the benefits for business owners to leave the red ocean, characterized by the bloody, sharkinfested. The real opportunity is to create blue oceans of uncontested market space.
The blue ocean strategy framework has evolved from value innovation and is highly inno vative in c hallenging the conventional business s trategies t o give a head on to the. Insead knowledges articles, blog posts and videos provide highly actionable takeaways for. Download it once and read it on your kindle device, pc, phones or tablets. Chan kim and renee mauborgne blue ocean shift is the second book in the blue ocean journey for kim and mauborgne. Blue ocean strategy the blue ocean approach is a strategic tool that helps innovation strategists asses current and desired future strategic states whereasred ocean is a current state. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Library of congress cataloginginpublication data kim, w.
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. The concept of blue ocean strategy first took the business world by storm in 2005 when authors w. This blog article is a overview of some of the key points of the book by w. The structure can be created or recreated by the steps taken by players in the market. Over the past decade, it has spawned case studies, keynote speeches, consulting opportunities, more books and its own dedicated website. Interested to know what executives have to say about their blue oceans. How to create uncontested market space and make the competition irrelevant, 8. Chan kim harvard business school press, 2005, conceived of a new way for companies to drive profitable growth. Posts about blue ocean strategy the corporate strategy blog. Value innovation is the cornerstone of blue ocean strategy 1 and it is the strategic move that allows a company to create a blue ocean. Essay about blue ocean strategy 825 words bartleby.
Because blue ocean is an andand, not an eitheror, strategy. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. Companies should instead look for new market space and ways to reinvent the industry. Chan kim, of blue ocean strategy, expanded edition 2015. The real blue ocean strategy opportunity is to create blue oceans of. Click the link above or the picture below to read more. Published in 2004, blue ocean strategy has become a. Blue ocean strategy is a theory, method and toolkit developed by w. List the factors the customer cares about, and current dimensions of competition. Competing in overcrowded industries is no way to sustain high performance.
The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. 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. Examining the emergence and evolution of blue ocean strategy. First published in 2005 then republished in 2015 with new information, it has become the core approach we use with our clients, many of whom are literally on the brink before getting. The result is that in more and more industries, supply is.
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