They are the authors of blue ocean strategy, which has sold over 3. The blue ocean strategy as a method for developing sustainable profitable frameworks implies the fundamental idea of developing new innovational markets with a majority of new customers. How to create uncontested market space and make the competition irrelevant from the worlds largest community of rea. Download a pdf of this article and check back next tuesday for how to see your leadership reality. They represent businesses that may not be around today, or werent around until they came on to the scene. Intelligent readers dont need help figuring that out. How to create uncontested market space and make the. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. 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. It was built on the notion of creating new markets where competition is irrelevant and the opportunity to grow and be profitable is unlimited. Over 4 million copies sold wall street journal and businessweek bestseller recognized as one of the most iconic and impactful strategy books ever written the global phenomenon that has sold over 4 million copies, is published in a recordbreaking 46 languages and is a bestseller across five continentsnow updated and expanded with new content. 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 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. How to create uncontested market space and make the competition irrelevant, w. It is being published in a recordbreaking 44 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. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. I wish i could say my own pursuit of enlightenment led me to chan kim and renee mauborgnes masterpiece on embracing and leveraging difference. The blue ocean strategy seems to be a perfect solution for present companies to become sustainable successful. Chan kim and renee mauborgne have created a comprehensive set of analytic tools and frameworks to create blue oceans of new market space. While this came in appendix a in the book, this is a good time to cover three industries with repeated blue ocean creation.
The creation of blue oceans is about driving costs down while simultaneously driving value up for buyers. The authors are now professors and codirectors of the blue ocean strategy institute at the insead business school in france. Welcome to blue ocean strategy were thrilled to have you on board. Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to.
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. How to create uncontested market space and make competition irrelevant, is a market space that is undeveloped, and untapped by competitors. Pdf harvard business school press 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 has helped numerous companies and organisations across the globe to create new market space and achieve pro. Made by group d of the minor global trendwatching 2015. Set sail towards your blue ocean jk beteiligung gmbh. 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. 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. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. 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 basic principle of blue ocean strategy is to map out, in addition to the already known markets red oceans, the blue oceans. Innovation, new market space and creating demand are central characteristics. Value innovation strategy competes in an uncontested market space. How to create uncontested market space and make the competition irrelevant, a book by professors w. Value innovation is a new way of thinking about and executing strategy that results in the creation of a blue ocean.
Rather than competing within the confines of the existing industry or. In an audiobook that challenges everything you thought you knew, w. 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. The premise of the book is that companies can succeed by creating. Summary of the first four chapters of the international bestseller blue ocean strategy. Chan kim and renee mauborgne in the indie business book club. Achieved via the delivery of features that have a highest marginal benefit to customer needs.
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 growth strategy framework focused on the idea of creating an uncontested market spacei. To join the free indie business book club, click here. Blue ocean strategy is a bad book, but it is not your usual bad book. This blog article is part of a series on the book blue ocean strategy by w. He is known as coauthor of the 2005 book blue ocean strategy. Blue ocean strategy is a strategy that advice companies to go to a new market, which interest. Seminar paper from the year 2008 in the subject business economics business management, corporate governance, grade.
Identify blue oceans by mapping your product portfolio. How to create uncontested market space and make the competition irrelevant unabridged by w chan kim, renee mauborgne isbn. 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. Value innovation value innovation places equal emphasis on value and innovation. 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 a business context, it is inevitable that one of the main words one would hear is competition. This blog article is a overview of some of the key points of the book by w. Impact of blue ocean strategy on organizational performance. Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group. Companies pursue blue ocean strategies to make competition irrelevant.
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. We believe that blue ocean strategy will send you on the right path towards creating your own uncontested space. View the entire blue ocean leadership series here w. The book the origin of the terms red and blue oceans comes from blue ocean strategy how to create uncontested market space and make the competition irrelevant. Based on a study of 150 strategic moves spanning more than 100 years. That is why i used books, thesis, surveys, organizational records and. The mind map of blue ocean leadership insead knowledge. 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. Recognized as one of the most iconic and impactful strategy books ever written, blue ocean strategy argues that cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit. Companies should instead look for new market space and ways to reinvent the industry. Blue ocean strategy is a landmark idea founded by w. The concept of blue ocean is based on the idea that the business universe is made up. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant.
The four pillars of blue ocean leadership insead knowledge. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. How to create uncontested market space and make the competition irrelevant pdf by w. 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.
Chan kim is a professor of strategy and management at insead and codirector of the insead blue ocean strategy institute, in fontainebleau, france. Reviewing the blue ocean strategy universiteit twente. 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. 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. Furthermore, it is surprising that blue oceans are already used and applied unconsciously by strategists in the current strategies. 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. 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. These blue oceans document new markets and new opportunities. How to create uncontested market space and make the competition irrelevant by w.
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. Pdf impact of blue ocean strategy on organizational. Everyday low prices and free delivery on eligible orders. This framework is very innovative, as its principles challenge the conventional business. Blue ocean strategy formulation the strategy canvas. A blue ocean strategy perforce represents a departure from the status quo, fair process is required to facilitate both strategy making and execution by mobilizing people for the voluntary cooperation needed to execute blue ocean strategy. 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 strategy and sustainability for strategic. Blue ocean strategy including examples and pdf download. What is blue ocean strategy about blue ocean strategy. 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 book published in 2005 and written by w. In a way doing business is like participating in a.
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