What is it about your business or elements of your business that you can leverage or reinvent to create your blue ocean. The six paths framework in formulating blue ocean strategy. Chan kim and mauborgne have therefore constructed more frameworks that can help with this process like. How to create uncontested market space and make the competition irrelevant by 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. On the other hand, there is not really an analytic framework to. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. 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. Blue ocean strategy 2 good understanding of how to compete skillfully in red waters from analyzing the underlying economic structure of an existing industry to choosing a strategic position of low cost, or differentiation.
The book reveals the intuitive characteristics of good blue ocean strategy. Of the many subtopics under the blue ocean strategy, it proposes the four actions framework, which asks four key questions to challenge an industrys strategic logic and business model. 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. His book blue ocean strategy, coauthored with renee mauborgne, has sold 3. Based on a study of 150 strategic moves spanning more than 100 years.
But what ive learned is that we can use the blue ocean strategy to perhaps make ourselves stand out from the crowd, while gaining valuable experiences and not exhausting ourselves. Your productservice must raise and create customer value gain and simultaneously reduce and eliminate features or services that are less valued, or not valued at all, the customer pain. Before the blue ocean strategy framework can be applied, many strategists utilize porters 1979 five forces theory as a strategy canvas can only be created once one captures the contemporary state of the play by detailing the factors that players compete on in terms of products, services and even delivery. 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 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 tool is the central diagnostic and action framework for building a compelling blue ocean strategy. 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. This blog article is a overview of some of the key points of the book by w. The hardcover of the blue ocean strategy, expanded edition. Blue ocean strategy on jet blue case study by neil k.
It is getting a business to this crucial state that the book focuses on. To create a blue ocean strategy, organizations must be committed to value innovation. Create here, the idea is to create new industry factors that can generate value and anew market and were not offered before. Blue ocean strategy including examples and pdf download. Secondly we will try to find a new blue ocean while applying asit framework. May 30, 2017 t his month, we read blue ocean strategy by w. 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. Four actions framework of blue ocean applied to jet blue 1. Stream and download audiobooks to your computer, tablet or mobile phone. 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. Chan kim and renee mauborgne in the indie business book club. The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. Professor of mis school of business administration gonzaga university spokane, wa 99258 usa.
The belief that blue ocean strategy is a theory of marketing and a niche strategy. I read a lot of business books, and i had a hard time keeping track of everything sometimes i felt there was too much and i would have liked to cover few topics but more indepth. Then you can start reading kindle books on your smartphone, tablet, or computer no kindle device required. The author suggests that if a company understands the principles and strategies behind creating blue ocean markets, it will be able to maximize the opportunities while simultaneously minimizing the risks in the execution of a blue ocean strategy. Mar 15, 2014 four actions framework of blue ocean applied to jet blue 1. Is the blue ocean strategy book really a new approach or. Blue ocean strategy can be applied across sectors or businesses. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Four actions framework blue ocean strategy shortform blog. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Blue ocean strategy formulation the four principles of.
By creating this plot, you can find imbalances in your strategy, such as only raising and creating which leads to overengineering and trying to be the best or only eliminating and reducing which leads to mere price competition. The blue ocean strategy explains how to guide your business across seas with less competition and greater profitability. A good blue ocean strategy has items in each of the four grids. The strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. How to create uncontested market space and make the competition irrelevant authors. It captures the current state of play in the known market space. I found that first reading this chapter, and then applying the tools to my own strategyinthe. How to create uncontested market space and enter your mobile number or email address below and well send you a link to download the free kindle app. Summary capter 1 4 of blue ocean strategy by lauri di vino.
In a blue ocean you change the playing field of strategy. The four actions framework and errc grid tweet after you define the three tiers of non customers, the idea is that you poll these noncustomers and find out what it would take to purchase your product or service. Apr 03, 2020 if you can create a blue ocean strategy of your own in the ecommerce space you will dramatically increase your chances of success. 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 space that is filled. It was built on the notion of creating new markets where competition is irrelevant and the opportunity to grow and be profitable is unlimited. Recognized as one of the most iconic and impactful strategy books ever written, blue ocean strategy. The four actions framework guide your student life with. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of strategy and international management at insead. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. This analytic tool complements the four actions framework. Red ocean versus blue ocean strategy create uncontested market space align the whole system of a. The four actions framework is used to help create value innovation and break the valuecost trade. An introduction to blue ocean strategy mba knowledge base.
Red ocean strategy blue ocean strategy compete in existing marketing beat the competition exploit existing demand make the valuecost tradeoff align the whole system of a firms activities with its strategic choice of differentiation or low cost. Pdf download blue ocean strategy free unquote books. Furthermore the blue ocean strategy was awarded with. The strategies fit within what the author calls the four actions framework. May 14, 2011 the blue ocean strategy four actions framework also called eliminate reduce raise create grid errc grid is a complementary tool to the strategy canvas. Chan kim and renee mauborgne in their bestselling book of the same name. 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 chapter 14 the four action framework chapter two. The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. The misconception that blue ocean strategy is a lowcost strategy that focuses on low pricing. Featuring 29 new and updated casebased questions, organized into seven core areas of process design, this selfassessment will help you identify areas in which blue ocean strategy.
Oct 09, 2017 a four action framework for blueocean innovation. The belief that blue ocean strategy sees competition as bad when in fact it can be good for companies. 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. All the tools you need to an indepth blue ocean strategy selfassessment. The authors stress that value and innovation must work together simultaneously in order to develop a blue ocean strategy. In this article you will learn how to make your competition irrelevant and have sales and profit. Blue ocean strategy value innovation strategy canvas four actions framework errc grid six paths framework pioneer migrator settler map three tiers of noncustomers sequence of creating a blue ocean buyer utility map price corridor of the mass four hurdles to strategy execution tipping point leadership fair process. First and foremost on their list is a tool used to break out of competition and make competition irrelevant called the strategy canvas. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. Highlighting 6 principles unique to blue ocean strategy and introducing a framework from which decisionmakers in any industry can work from, kim and mauborgne reveal that innovation can be achieved through analytical models as opposed to strokes of genius or luck. Blue ocean strategy blue ocean strategy is a business strategy book published in 2005 by harvard business school publishing corporation in united state of america, it was written by w. The concept of blue ocean is based on the idea that the business universe is made up. View notes blue ocean strategies summary from mgmt 430 at university of washington. Blue ocean strategy how to create uncontested market.
The belief that blue ocean strategy is the same as innovation. Blue ocean strategy and sustainability for strategic management. Recognize that the blue ocean of tomorrow is next weeks red ocean. The fouractions frameworkon blue ocean strategy to reduce, create, raise and eliminate industry practices to create a. 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. The strategy canvas, four actions framework, and the eliminatereduceraisecreate grid are introduced by means of discussions and demonstrations for the readers enlightenment. Blue ocean strategy is a landmark idea founded by w. Chen, information systems theory and practices blue ocean strategy. Blue ocean strategy is a collection of wisdom, systematic process and framework which were formulated after extensive management research and studies of companies that exhibit characteristics of certain management principles that help these compa. Still, if blue ocean strategy can cause you to question just one. There are six basic approaches to reconstruct market boundaries, also known as six paths framework. How to create uncontested market space and make the competition irrelevant unabridged by w chan kim, renee mauborgne isbn. How to create uncontested market space and make the competition irrelevant.
Once a blue ocean is discovered, management must clearly formulate the blue ocean strategy and take the actual actions to implement the new strategy. It provides guidelines to identify new competing factors and therefore be more creative during later phases of innovation and design a new buyer value curve. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. The blue ocean strategy tools four actions framework the four actions framework is used to add new values to the strategic canvas value curve. The structure can be created or recreated by the steps taken by players in the market. Chan kim and renee mauborgne of the blue ocean strategy institute and professors at frances insead business school and cofounders of the value innovation. Pdf blue ocean strategy book pdf free download download. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. Blue ocean strategy introduces analytical tools to minimize risk. This allows you to understand where the competition is currently investing, the factors the industry currently competes on in. The blue ocean strategy book has been sold over 3,5 million times, was published in 43 languages and is a bestseller across five continents. 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. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. Blue ocean strategy is referred to a market for a product where there is no competition or very less competition.
Bos four actions framework errc grid innovating now. Jul 16, 2015 the blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. Four actions framework of blue ocean applied to jet blue. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future.
List the factors the customer cares about, and current dimensions of competition. May 18, 2009 four action framework defines a new strategy by eliminating legacy industry rules and raising value components missed by the competition. How to create uncontested market space and make the competition irrelevant, a. Blue ocean strategies a summary blue ocean strategy is a business strategy book first published in 2005 and.
The blue ocean idea index lets you test the commercial viability of your blue ocean ideas and. Summary of the first four chapters of the international bestseller blue ocean strategy. 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. The fouractions frameworkon blue ocean strategy to reduce, create, raise and eliminate industry practices to create a blue ocean fromthe industry red ocean. It pushes companies not only to ask the questions posed in the four actions framework but also to act on all four to create a new value curve or strategic profile, which is essential to unlocking a new blue ocean. There are six basic approaches to reconstruct market boundaries, also. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. How to create uncontested market space and make competition irrelevant, is a market space that is undeveloped, and untapped by competitors. Blue ocean strategy is a book published in 2005 and written by w. Blue ocean strategies summary blue ocean strategies a.
Value innovation strategy competes in an uncontested market space. Blue ocean strategys four actions framework poses four central questions that let companies break the valuecost tradeoff and create a blue ocean. In this book summary of blue ocean strategy, well outline the key concepts, tools and tips from the book to help you create uncontested market space and make your competition totally irrelevant. This blue ocean strategy allinclusive selfassessment enables you to be that person. Made by group d of the minor global trendwatching 2015. This will be the topic of the practical part of the thesis.
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