Its authors, insead professors w chan kim and renee mauborgne, continued their steady progress up the thinkers50 list, finishing second to christensen this year. The risks of following a blue ocean strategy the adaptive. The concept of ideal strategy and its realization using. The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. 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. Extreme openness is another blue ocean technique that buffer uses on their open blog.
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. Impact of blue ocean strategy on organizational performance. Blue ocean strategy chapter 14 the four action framework chapter two. Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group.
The premise of the book is that companies can succeed by creating. Study 31 terms blue ocean strategy flashcards quizlet. This course will be conducted by mr jason hunter, director of training, blue ocean strategy initiative centre, london, uk. Strategy and innovation leader blue ocean strategist keynote speaker. And your blue ocean strategy must provide unique services and capabilities. In his role as a senior global consultant for the blue ocean strategy network, jason has led successful strategy development initiatives to some of the worlds most recognizable institutions including general electric, kpmg, pearson plc, toshiba, samsung, diageo, and the world bank.
Download a pdf of this article and check back next tuesday for how to see your leadership reality. 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. May 27, 2014 the buffer blog has exposed a blue ocean strategy by harnessing acumen for research and compiling data. This is the holy grail that marketers have been seeking since we began thinking about product differentiation, market segmentation, positioning, and all the. Based on a study of 150 strategic moves spanning more than 100 years. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Blue ocean shift is the essential follow up to blue ocean strategy, the. Chan kim, renee mauborgne, jason hunter, brian marks, wayne mortensen. This article explains the blue ocean strategy, developed by w.
View the entire blue ocean leadership series here w. Blue ocean strategy how to create uncontested market space and make the competition irrelevant. Apr 03, 2020 your blue ocean strategy must result in unique products or assortment which a customer can not get anywhere else. 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. Chan, mauborgne, renee, hunter, jason, marks, brian. Pdf impact of blue ocean strategy on organizational. Jason hunter and ji mi, who have worked with us for the last several years, deserve special mention. Jul 28, 2018 the strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. This may include products you have designed, unique functionality, leveraging online and physical store footprints in some fashion, leveraging the internet. The blue ocean strategy is presumably based on the use of value innovations.
Blue ocean strategy has helped numerous companies and organisations across the globe to create new market space and achieve pro. Blue ocean strategy introduces analytical tools to minimize risk. Welcome to blue ocean strategy were thrilled to have you on board. Jul 21, 2010 blue ocean strategy is the bestselling book which launched a worldwide revolution in business strategy. Since, dividing up existing demand and benchmarking the competitors, blue ocean strategy is regarding grow demand and break away from the competition. In their bestselling book, blue ocean strategy, authors w. Chan kim and renee mauborgne in their book blue ocean strategy. View jason hunters profile on linkedin, the worlds largest professional community.
Achieved via the delivery of features that have a highest marginal benefit to customer needs. In this way, it swam into a blue ocean, offering a plastic watch at a price that allowed people to purchase two or three watches at one time. Blue ocean strategy says a company can create a blue ocean market space by innovating a new product or service mainly focusing on new to the world services. Rather than competing within the confines of the existing industry or. First of all, it was called value innovation, then it was turned into blue ocean strategy. Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to. Essay about blue ocean strategy 825 words bartleby. The blue ocean strategy bos is the strategic organizational approach that is based on the principle that companies should not engage in a. How to create uncontested market space and make the competition irrelevant, w.
Chan kim in the broadest sense, a company competes not only with the other firms in its own industry but also. Competitive forces different business units face different structural conditions with different resources, capabilities and different strategic mind. 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. Dec 23, 2017 blue ocean strategy with example duration.
However i believe developing new to the world services come with high risk and expenses but if. It captures the current state of play in the known market space. Hunter and ji mi, who have worked with us for the last several years, deserve. Set sail towards your blue ocean jk beteiligung gmbh. Pdf harvard business school press blue ocean strategy. The concept of blue ocean is based on the idea that the business universe is made up. We believe that blue ocean strategy will send you on the right path towards creating your own uncontested space. Jul 16, 2015 the blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present.
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 strategy is the bestselling book which launched a worldwide revolution in business strategy. Jason hunter senior global practitioner blue ocean global. It requires the right research, patience and focus. Jason hunter senior global practitioner blue ocean. 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 four pillars of blue ocean leadership insead knowledge. 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. This international bestselling book sold more than a million copies in its first year of publication, and has. It reduced costs by using plastic instead of metal, for example, and reducing the parts in each watch from 150 to 50. The creation of blue oceans is about driving costs down while simultaneously driving value up for buyers. Blue ocean pedagogical materials, used in over 2,800 universities and in almost every country in the world, go beyond the standard casebased method. 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.
How to create uncontested market space and make the. 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 is a marketing theory and the title of a book published in 2004 that was written by w. Jun 21, 2007 blue ocean strategy red ocean strategy 2. The blue ocean approach is based upon the concept of value innovation which was also introduced by the authors of the blue ocean strategy, kim and mauborgene. Blue ocean shift is the definitive guide to shift you, your team, and your organization to new heights of confidence, market creation, and growth. The on the blue ocean strategy essay 1969 words 8 pages. The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. After reading you will understand the basics of this powerful strategy tool what is the blue ocean strategy.
Value innovation strategy competes in an uncontested market space. Blue ocean strategy and sustainability for strategic management. This blog article is a overview of some of the key points of the book by w. Pursuing a blue ocean strategy can be a great choice for many companies, but it is not without risks or challenges. Innovation, new market space and creating demand are central characteristics. How to create uncontested market space and the make competition irrelevant 2005. 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. This allows you to understand where the competition is currently investing, the factors the industry currently competes on in products, service, and delivery, and what. Blue ocean strategy is a landmark idea founded by w. This blog article is part of a series on the book blue ocean strategy by w. Blue ocean strategy growth strategy innovation mature business. Chan kim and renee mauborgne, professors at insead. Blue ocean strategy is a book published in 2005 and written by w. May 30, 2017 it reduced costs by using plastic instead of metal, for example, and reducing the parts in each watch from 150 to 50.
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. Companies should instead look for new market space and ways to reinvent the industry. Hunter is also an institute executive fellow, insead, fontainebleau, france, responsible for teaching bosvalue innovation in executive. The complementary video called a history of blue ocean strategic moves. The buffer blog has exposed a blue ocean strategy by harnessing acumen for research and compiling data. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. Some strategic planning models are based on theories that dont quite pan out during gotomarket executions. 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. Blue ocean strategy formulation the strategy canvas. See the complete profile on linkedin and discover jasons. They are the authors of blue ocean strategy, which has sold over 3.
Historical blue ocean strategy moves computer, cinema and auto. Based on 15 years of research, the authors used 150 successful strategic moves spanning 120 years of business history and across 30. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. How to create uncontested market space and make the competition irrelevant by w. 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. Tools and frameworks for creating and capturing blue oceans it is constructed to create a new value curve and when you apply the four actions framework to the strategy canvas of your industry, you get a. Lessons from breakthrough strategic moves over the last century. Our multimedia cases and interactive exercises are designed to help you build a deeper understanding of key blue ocean strategy concepts, developed by worldrenowned professors chan kim and. Value innovation is a new way of thinking about and executing strategy that results in the creation of a blue ocean. List the factors the customer cares about, and current dimensions of competition.
An introduction to blue ocean strategy mba knowledge base. Blue ocean strategy is the most successful book on business masterplanning 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. This was a blue ocean opportunity staring them in the face. Strategy, blue ocean strategy,growth strategy,mature business,innovation item. Blue ocean strategy is a business strategy book, first published on february 3, 2005 by the harvard business school press. Your blue ocean strategy must result in unique products or assortment which a customer can not get anywhere else. The authors use the term blue ocean strategy to refer to the new management approach they are selling in their book. Very few businesses reach the transparency level that buffer openly embraces. The us wine industry in 2001harvard case study solution and hbr and hbs. Challenging the conventional competition based approaches to business strategy, blue ocean. 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.
In contrast, blue ocean strategy originated from a study that took place over 10 years and analyzed company successes and failures in more than 30 industries. Blue ocean strategy and sustainability for strategic. Jan 17, 2015 jason hunter senior global practitioner at blue ocean global network greater chicago area 343 connections. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. Our multimedia cases and interactive exercises are designed to help you build a deeper understanding of key blue ocean strategy concepts, developed by worldrenowned professors chan kim and renee mauborgne. The structure can be created or recreated by the steps taken by players in the market. Companies pursue blue ocean strategies to make competition irrelevant. They represent businesses that may not be around today, or werent around until they came on to the scene. It was built on the notion of creating new markets where competition is irrelevant and the opportunity to grow and be profitable is unlimited. Red ocean vs blue ocean strategy differentiation or low cost differentiation and low cost compete in existing market space create uncontested market space.
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