Pdf blue ocean strategy how to create uncontested market. How to create uncontested market space and make the competition irrelevant, w. In contrast, blue ocean strategy seeks to break the valuecost trade off by eliminating and reducing factors an industry competes on and raising and creating factors the industry has never offered. Blue ocean strategy page 1 main idea the best way to beat your competition is, in fact, to stop competing against them. It is used to plot how the current competitors compete in a market space, what factors they compete on and how your company and the competition scores on each key factor. Companies should instead look for new market space and ways to reinvent the industry. 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. 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. 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. Blue ocean strategy and its implications for businesses.
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 pool. Blue ocean strategy can be applied across sectors or businesses. Blue ocean strategy is a theory explained in a 2005 book by w. What is blue ocean strategy about blue ocean strategy. This new market space is created by launching new offerings, with the aim being to make the competition irrelevant so that an organization can grow, uncontested, at least in the beginning. Embraced by organizations and industries worldwide, blue ocean strategy is a global phenomenon that has sold over 4 million copies, is published in a recordbreaking 46 languages and is a bestseller across five continents. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Blue ocean strategy is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. Delivered by worldclass faculty, this programme will teach you how to apply the theory created by insead professors w.
In this article you will learn how to make your competition irrelevant and have sales and profit. Blue ocean strategy is where a company creates a completely new market space or market category. The idea in brief the best way to drive profitable growth. Based on a study of 150 strategic moves, spanning more than 100 years across 30 industries, the authors, chan kim and renee mauborgne show that lasting success comes not. Importance of the blue ocean strategy to a business. How to create uncontested market space and make the competition irrelevant, a book by professors w.
They assert that these strategic moves create a leap in value for the pany, its buyers, and its employees while unlocking new demand and making the petition irrelevant. 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. By that we can see that there is a lot of interest by the business people and academics around the world about that subject. How to create uncontested market space and make the competition irrelevant. Pdf blue ocean strategy as a tool for improving a companys. Pdf on apr 1, 2012, ibrahim rawabdeh published blue ocean strategy as a tool for improving a companys marketing function. The strategy focuses on moving away from an existing market and seaching for new markets. By identifying untapped or at least less tapped product markets where unique buyer segments and needs can be identified and satisfied, blue ocean strategy results to.
Value innovation strategy competes in an uncontested market space. How to create uncontested market space and make the competition irrelevant pdf by w. 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. Insead blue ocean strategy offers a new perspective on strategy formulation and execution. The authors use the metaphor of the blue ocean as a direct contrast to red oceans. It is based on the view that market boundaries and industry structure are not a given and can be. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades. On the basis of a reconstructionist view of strategy, blue ocean strategy argues that industry structure can be changed endogenously by the strategic actions of micro. Blue ocean strategy, the global phenomenon that has sold over 4 million copies and is recognized as one of the most iconic and impactful strategy books ever written, argues that cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool.
Their iconic and impactful books, blue ocean strategy and blue ocean shift, provide a systematic approach to making the competition irrelevant and tools any organisation can use to shift from. The concept of blue ocean strategies is new in the business world as it was first published in 2005 in the bookmanual blue ocean strategy, by w. Chan kim and renee mauborgne tackle the central problem facing all businesses. Gain a new framework for strategy design and implementation.
Blue ocean shift is the definitive guide to shift you, your team, and your organization to new heights of confidence, market creation, and growth. Blue ocean strategy is the 2015 update to the classic business strategy text of the same name originally published in 2005. 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. Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. It is about creating and capturing uncontested market space, thereby making the competition irrelevant. Blue ocean is a strategy of innovation in new market space where competition does not exist. Start developing blue ocean strategy for your organisation in order to break away from the competition through.
The strategy canvas outlined in the book is basically a tool to visually show how a company will or has created a blue ocean strategy. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. In other words, when you go headtohead against rivals for a share of the existing market, this is like competing in a red ocean. Chan kim and renee mauborgne, professors at insead. Pdf blue ocean strategy download full pdf book download. 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.
First published in 2005, it was updated and expanded with fresh content in 2015. This blog article is a overview of some of the key points of the book by w. Apr 27, 2012 blue ocean is a strategy of innovation in new market space where competition does not exist. 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. Library of congress cataloginginpublication data kim, w. Blue ocean strategy is a book published in 2005 and written by w. Blue ocean strategy is a marketing theory in which a business enters a market that has little or no competition. 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. Based on a study of 150 strategic moves spanning more than 100 years.
A company will have more success, fewer risks, and increased profits in a blue ocean market. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Blue ocean strategy powerpoint templates present better. 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. Blue ocean strategy including examples and pdf download.
Jul 17, 2018 free blue ocean strategy powerpoint templates now that youve done the hard work of identifying your blue ocean strategy, its time to present it to top management. Learn how to engage your colleagues in a blue ocean strategy process. Blue ocean strategy is the most successful book on business masterplanning. Acquire an indepth understanding of blue ocean strategy tools and concepts developed at insead. In red oceans, industry boundaries are defined and accepted, and the. Blue ocean strategy formulation the strategy canvas. The database and research have continued to expand. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. The concept of blue ocean strategy first took the business world by storm in 2005 when authors w. The research focused on discovering the common factors that lead to the creation of blue oceans and the key differences that separate those winners from the mere survivors and those adrift in the red ocean.
To understand red ocean strategy let us begin by defining blue ocean strategy. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. To make your life easier, you can download these free templates that have been made especially for blue ocean strategy presentations. Blue ocean shift is the essential followup to blue ocean strategy, the classic 3. What is distinctive about blue ocean strategy as a theory. This, in turn, requires the alignment of the value, profit, and people propositions of a strategy in support of pursuing both differentiation and low cost. This strategy, which is based on extensive research of hundreds of companies spanning across decades and including several industries, proclaims that instead of battling competitors, companies can create new markets for themselves.
The text offers a practical handbook to business students and entrepreneurs who wish to rise above the fray of the competition, become pioneers in previously uncharted market territory, and gain access to impressive growth. Eight key points of blue ocean strategy heres the essence of blue ocean strategy captured in eight key points. The risks of following a blue ocean strategy the adaptive. The insead blue ocean strategy institute is dedicated to extending the research on blue ocean shift, blue ocean strategy, and blue ocean leadership by chan kim and renee mauborgne and disseminating it to professors, researchers and practitioners around the globe. Click the link above to read the key concepts and everything you want to know about the blue ocean strategy.
Blue ocean strategy mi major reference works wiley. Before we dive into blue ocean strategy examples, lets get clear on what a. Essay about blue ocean strategy 825 words bartleby. The real opportunity is to create blue ocean for uncontested market space. Sep 24, 2017 in 2005, blue ocean strategy, expanded edition. Download this document for strategy at maastricht university for free and find more useful study materials for your courses. Jan 14, 2015 blue ocean strategy is a new way of thinking, a new strategic mindset, a bold new path to winning the future. Specifically, these new markets give a company a very high competitive advantage as well as low pricecost pressure. The on the blue ocean strategy essay 1969 words 8 pages.
Red oceans represent all the industries in existence todaythe known market space. Blue ocean strategy is referred to a market for a product where there is no competition or very less 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, develops and explains how to beat the competition by reaching beyond it into new unexplored markets.
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. The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. Heres the essence of blue ocean strategy captured in eight key points. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Blue ocean strategy is a concept that has been pioneered by insead professors, w. By identifying untapped or at least less tapped product markets where unique buyer segments and needs can be identified and satisfied, blue ocean. The insead blue ocean strategy open enrolment programme is based on the groundbreaking work developed by insead professors chan kim and renee mauborgne. 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. The structure can be created or recreated by the steps taken by players in the market.
Chan kim and renee mauborgne wrote a bestselling book, blue ocean strategy, which has been translated into 43 languages. Drawing on more than a decade of new work, kim and mauborgne show you how to move beyond competing, inspire your peoples confidence, and seize new growth, guiding you step by step through how to take your organization. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Books by w chan kim renee mauborgne pdf read blue ocean. 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. Blue ocean strategy is a powerful framework for finding new business opportunities. Pdf epub mobi ebooks are now available on this website. 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.
The fundamental premise is that most companies fight competitors headtohead in the same space, chasing the same customers with very similar products, creating a bloodyred ocean in their feeding frenzy. This new market space is created by launching new offerings, with the aim being to make the competition irrelevant so that an organization can grow, uncontested, at. But its not always clear how to create a blue ocean strategy for yourself. It is a great way to mobilize thinking around new differentiators value creation. To make your life easier, you can download these free templates that have been. Blue ocean strategy is a new way of thinking, a new strategic mindset, a bold new path to winning the future. Learn the concepts of tipping point leadership and fair process that ensure effective execution of blue ocean strategy. In executing a blue ocean strategy, how can a company overcome various organizational hurdles and build trust and commitment among people who work for or with the company. When expressed through a value curve, an effective blue ocean strategy has three complementary qualities.
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. How is blue ocean strategy different from a classic differentiation strategy. Now that youve done the hard work of identifying your blue ocean strategy, its time to present it to top management. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w.