Value innovation is a new way of thinking about and executing strategy that results in the creation of a blue ocean. Jun 21, 2007 blue ocean strategy red ocean strategy 2. Ive spoken about blue ocean markets before, but for the uninitiated, the term comes from the book blue ocean strategy. The following summary is not a substitute for reading the book for yourself. Focus, divergence and a compelling tagline raise reduce create. Blue ocean strategy including examples and pdf download. 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. To grow and develop a strong positive image, a company has an interest in turning its back on its competitors and conventional wisdom in order to devote its resources to creating a blue ocean of competition and bringing value to customers, using the book s tools. Blue ocean strategy is a theory explained in a 2005 book by w. This blog article is a overview of some of the key points of the book by w.
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. In their 2005 bestselling book blue ocean strategy w. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. 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. This blog article is the third in a series of five blog articles on the book blue ocean strategy by w. 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. Study 31 terms blue ocean strategy flashcards quizlet. This paper first critically analyzes the conjectures presented in the book. Each of our clients has its own brand, their own unique agent profile, and, therefore, their own individualized customer experience strategy to ensure were truly reaching their customers at the right level. Blue ocean strategy is the most successful book on business masterplanning. Instead of brutally battling your competitors, this breathtakingly refreshing book argues that the best strategy is to carve out a new blue ocean where you can shine without raining on anyone elses success. Blue ocean shift addresses several critical questions in strategy innovation theorieswhats non disruptive creation relative to disruptive innovation, and why together they can paint a more complete picture of firm and economic growth. Comparative of red ocean and blue ocean the first highlighted case from the blue ocean strategy book is the cirque du soleil. Blue ocean strategy can be found on amazon blue ocean strategy.
Seek out non customers and new market segments that have values in common with your current customer base. The 3 tiers of non customers and how to unlock them. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. 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 presents a systematic approach to making the competition irrelevant and outlines principles and tools any organization can use to create and capture their own blue oceans. Many of the case studies are based on how large companies have. Jul 16, 2014 top 10 management models for your business.
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. Blue ocean strategy is a marketing theory and the title of a book published in 2004 written by. But its not always clear how to create a blue ocean strategy for yourself. 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. Promises to be another pathbreaking book from the blue ocean strategy duo kim and mauborgne.
May 30, 2017 a blue ocean is contrasted with a red ocean where all market participants are doing the same thing and fighting for the same customers. Chan kim and renee mauborgne wrote a bestselling book, blue ocean strategy, which has been translated into 43 languages. In blue ocean strategy, they describe the red ocean as where most companies compete, seeking customers from the same market as their competitors, kim and mauborgne suggest that companies break out of the red ocean of bloody competition by creating uncontested market space in the blue ocean that makes the competition irrelevant. Some equate it to the work we find in peter thiels zero to one. 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 introduces analytical tools to minimize risk. Certaines promotions sont cumulables avec dautres offres promotionnelles, dautres non. This was a blue ocean opportunity staring them in the face. Chan kim and renee mauborgne, published by harvard business school press, boston, massachusetts, 2005, isbn 97815996192 blue ocean strategy is a business strategy book, first published on february 3, 2005. Locean bleu est une analogie pour decrire limmensite du potentiel non explore. Blue ocean strategy proposes that businesses can have more success by creating a blue ocean, rather than trying to compete in the red ocean. Im glad i didnt settle for watching a youtube video about what the blue ocean strategy is and instead delved into this book which was packed with practical advice.
Chan kim harvard business school press, 2005, conceived of a new way for companies to drive profitable growth. Its a market strategy, with a whole new thinking that will attract a new group of customers that were traditionally noncustomers. The fundamental premise of the blue ocean strategy is that as opposed to continuing to compete in the red ocean, you should try to find new space in which to sell your goods and services. Jul 15, 2014 blue ocean strategy, by renee mauborgne and w. A pathbreaking strategy known as blue ocean strategy is a pacifist marketing scheme and is considered a strategic planning tool for assessing a business. The risks of following a blue ocean strategy the adaptive.
Instead, firms should redefine their businesses into new offerings that are appealing to customers but are in such. How to create uncontested market space and make the competition irrelevant w. May 27, 2014 the buffer blog has exposed a blue ocean strategy by harnessing acumen for research and compiling data. Blue ocean shift is the essential followup to blue ocean strategy, the classic and over 4 million copy global bestseller by worldrenowned professors chan kim and renee mauborgne drawing on more than a decade of new research, blue ocean shift is the. Blue ocean strategy is a book published in 2005 and written by w. In short, the whole book could be summed up in the very first chapter where value innovation is explained because value innovation is not the cornerstone of blue ocean strategy it is blue ocean strategy. Chan kim and renee mauborgne 2006 blue ocean strategy has been described as a must read for all business students. Beyond competing proven steps to inspire confidence. These companies have fought for competitive advantage, battled over market share and struggled for differentiation. Value innovation value innovation places equal emphasis on value and innovation. How to develop a blue ocean strategy with customer instinct. Although the universe of noncustomers typically offers big blue ocean opportunities, few companies have keen insight into who noncustomers are and how to unlock them. Creating barriers in the value proposition, people and profit.
There are case studies, larger analysis, etc that culminated on this rigorous and interesting book. Jul, 2018 for struggling businesses, mauborgne recommended the strategy canvas, which is featured in her and kims newest book, blue ocean shift. 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. In their 2017 new york times bestselling book, blue ocean shift, kim and.
Customer experience strategy in this instance requires that we empower our agents to make a real difference in customers lives. 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. The blue ocean strategy seems to be a perfect solution for present companies to become sustainable successful. Blue ocean strategy is, itself, a blue ocean in the strategy world. Public sector application and research, including the application of blue ocean shift, blue ocean strategy, and blue ocean leadership to governments and non profits. Based on a study of 150 strategic moves spanning more than 100 years. Les clients ayant achete cet article ont egalement achete. To seize new profit and growth opportunities, they also need to create blue oceans. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Sep 26, 2016 the strategy canvas provides a highly visual tool to help look at future options. Its a market strategy, with a whole new thinking that will attract a new group of customers that were traditionally non customers. They have made the competition irrelevant, have created new demand and are now the leading company in this new market space.
The concepts behind the blue ocean strategy such as the competing factors, the consumer cycle, noncustomers, etc. Very few businesses reach the transparency level that buffer openly embraces. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. Competitive forces different business units face different structural conditions with different resources, capabilities and different strategic mind. Making a blue ocean shift is about creating new demand and growing your industry, rather than competing for existing customers. Chan kim and renee mauborgne a simplified book summary of how to execute a blue ocean strategy. Blue ocean strategy usually talks about creating a blue ocean for your business and creating barriers for other businesses to imitate. Instead, make the competition irrelevant by creating a leap in value for both yourself and your customers. Blue ocean strategy is a marketing theory and the title of a book published in 2004 written by w. The concept of blue ocean strategy first took the business world by storm in 2005 when authors w. For generations, business schools have taught some form of strategy for business leaders to execute when they are in a business that faces fierce.
Reviewing the blue ocean strategy universiteit twente. The books online companion has a number of free tools for readers to download. The creation of blue oceans is about driving costs down while simultaneously driving value up for buyers. All in all, blue ocean strategy is a book worth reading. How to create uncontested market space and make competition irrelevant, is a market space that is undeveloped, and untapped by competitors. We are swimming in a very large ocean with a lot of unexplored waters of non customers. May 28, 2012 amazon kindle fire blue ocean strategy four actions frame work errc grid eliminate raise durability camera light weight no 3g screen clarity bluetooth video load time gps speaker quality content ebooks, music, video, tv shows etc reduce create screen size 7 epub format storage capacity streaming video drm free music flash. Blue ocean strategy amazon kindle fire creating its own market. Extreme openness is another blue ocean technique that buffer uses on their open blog. The best book for noncompetitive strategy striving. Blue ocean strategy is a powerful framework for finding new business opportunities. 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. According to kim and mauborgne, blue ocean strategy challenges companies to break out of the.
In a blue ocean, you are the only provider of consequence. Importance of the blue ocean strategy to a business. In this article you will learn how to make your competition irrelevant and have sales and profit. Such a strategy therefore allows firms to largely play a non zerosum game, with high payoff possibilities. Blue ocean strategy is a business strategy book, first published on february 3, 2005 by the harvard business school press. This, the authors refer to as the cornerstone of the blue ocean strategy. Sep 24, 2017 in 2005, blue ocean strategy, expanded edition. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. I recently read this management book titled, blue ocean strategy that highlighted one key observation. Blue ocean strategy globalization, entrepreneurship and.
The authors discuss the benefits for business owners to leave the red ocean. 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. Such a strategy therefore allows firms to largely play a nonzerosum game, with high payoff possibilities. Blue ocean strategy books that can change your life. Traditionally, business that pursue greater value for customers accept doing so at a higher cost, or to create average value at a lower cost. 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 blue ocean strategy is all about challenging the industry focus. A blue ocean strategy differs from a lowcost strategy in that a. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Blue ocean strategy is the most successful book on business.
It aggregated new demand for its golf club offering by looking at non customers. The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. Value innovation strategy competes in an uncontested market space. Customercentricity blue ocean strategy customerthink. You may or may not agree with the central philosophy, but you will be inspired. Blue ocean strategy, one of the best seller books has received tremendous attention amongst scholars and practitioners. Start with a strategic price and then deduct the desired profit margin to arrive at the target cost. According to kim alternative appendix figure approach blue ocean strategy build a blue business model buyer group buyer utility buyer utility map called the visual cdi challenge circuses cirque du soleil companys strategy companys value curve competition irrelevant competitors complementors concentrate consider cost innovations create a blue. How to create uncontested market space and make the competition irrelevant, a book by professors w. That is a fine book and an extension of blue ocean thinking. Chan kim and renee mauborgne, deals with the reality of companies long engaging in headtohead competition in search of profitable growth. Now, 12 years later, the authors offer an exciting new book that synthesizes their experience in assisting with the implementation of blue ocean strategy. How to create uncontested market space and make the competition irrelevant by w. This strategy challenges conventional thought but isnt some random idea.
May 14, 2020 the fundamental premise of the blue ocean strategy is that as opposed to continuing to compete in the red ocean, you should try to find new space in which to sell your goods and services. 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. The first analytic framework that is used to create a blue ocean is the. When companies are willing to challenge the functional emotional orientation of their industry, they often find new market space. Are there any commonalities between the non buyers. Finally, targeting their films to non customers is one of the key tenets of blue ocean strategy.
The blue ocean strategy is a book about finding your niche within a niche so. What is blue ocean strategy about blue ocean strategy. It is all about devising and acquiring the uncontested market forum by spawning a new demand. The blue ocean strategy has been used by companies like cirque du soleil to completely redefine the industries they entered by turning the conventional industry boundaries on its head. Since, the industries are in a state of non existence, there is absolutely no relevance of peer. One of the first shows was titled we reinvent the circus. Second, we investigate if means suggested by authors to create a blue ocean are applicable in emerging markets. Chan kim et renee mauborgne, chercheurs au blue ocean strategy institute. The premise on which the blue ocean strategy thesis is built, is a simple one. In a blue ocean because of the uniqueness of your offering you are able to service your customers in uncontested at least for now space. Although blue oceans enable a firm to gain uncontested market space, it is only for a time that this is so.
To convert this huge latent demand into real demand in the form of thriving new customers, companies need to deepen their understanding of the universe of noncustomers. May, 2014 the blue ocean strategy is all about challenging the industry focus. The blue ocean strategy tiers of non customers bosco. The premise of the book is that companies can succeed by creating. One of the most successful efforts to do so is the book blue ocean strategy, by. 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. Widely applicable there are many lessons that startups and existing businesses in both entertainment and other industries can learn from marvel. There are four things you would learn specifically alignment barriers. How to create uncontested market space and make the competition irrelevant from the worlds largest community of rea.
One of the first steps of the blue ocean shift process is to identify the demand that exists beyond your industry. 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. Typically, to grow their share of a market, companies strive to retain and expand their existing customer base. Chan kim and renee mauborgne, professors at insead. Achetez et telechargez ebook blue ocean strategy, expanded edition. Create a new market space through innovating on the value you give to the customer.
The concepts behind the blue ocean strategy such as the competing factors, the consumer cycle, non customers, etc. You are uncontested because you have created a product or service that is exclusive and unchallenged. Blue ocean strategy is an important book for anyone seeking a strategy that can help them in their career and in business. Blue ocean strategy is a bad book, but it is not your usual bad book.
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