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. Blue ocean strategy including examples and pdf download. All in all, blue ocean strategy is a book worth reading. General electric developed the ge 9 cell matrix to determine the strategic. 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 master. 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. How to create uncontested market space and make the. Sep 26, 2016 the strategy canvas provides a highly visual tool to help look at future options. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. Blue ocean strategy will help you create innovation across your whole organisation.
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. It reduced costs by using plastic instead of metal, for example, and reducing the parts in each watch from 150 to 50. It was built on the notion of creating new markets where competition is irrelevant and the opportunity to grow and be profitable is unlimited. Innovation, new market space and creating demand are central characteristics. Essay on blue ocean strategy a marketing book 1053 words. The book mostly borrows from a range of over 140 strategic marketing moves within a period of over a century. She is also codirector of the insead blue ocean strategy institute. Set sail towards your blue ocean jk beteiligung gmbh. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. Such strategies movestermed value innovationcreate powerful leaps in value for both the firm and its buyers, rendering rivals obsolete and unleashing new. Blue ocean strategy and sustainability for strategic management.
Based on a study of 150 strategic moves spanning more than 100 years. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. Blue ocean strategy is often compared to venture strategy. Chan kim and renee mauborgne, professors at insead.
It is about creating and capturing uncontested market space, thereby making the competition irrelevant. Inside business 360,united states if you are still wondering whether to pick up a copy of blue ocean strategy, we hope this article will convince you. 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. Venture strategies have been used by large multinationals for decades. Eight key points of blue ocean strategy heres the essence of blue ocean strategy captured in eight key points.
Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to. The strategy canvas provides a highly visual tool to help look at future options. What is distinctive about blue ocean strategy as a. Lets say you are a finance professional and you embarked on your journey as a financial analyst. How to create uncontested market space and make the competition irrelevant is the 2015 update to the classic business strategy text of the same name originally published in 2005. 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. In this article you will learn how to make your competition irrelevant and have sales and profit. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of. Kim and renee mauborgne in a book called, blue ocean strategy. Pdf blue ocean strategy download full pdf book download. 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 concept of blue ocean is based on the idea that the business universe is made up. Pdf blue ocean strategy how to create uncontested market. Value innovation strategy competes in an uncontested market space. 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. It is based on the view that market boundaries and industry structure are not a given and can be. 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. 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. The premise of the book is that companies can succeed by creating.
Blue ocean strategy proposes that businesses can have more success by creating a blue ocean, rather than trying to compete in the red ocean. It is being published in a recordbreaking 44 languages and is a w. How to create uncontested market space and make the competition irrelevant by w. The on the blue ocean strategy essay 1969 words 8 pages. Pdf the study deals with the blue ocean strategy bos that offers. However, there is a large difference between these two approaches. Jul 16, 2015 the blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. In a few cases, companies can give rise to completely new industries, as ebay did with the online auction industry. 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. Renee mauborgne is the insead distinguished fellow and a professor of strategy at insead, one of the worlds top business schools.
How to create uncontested market space and make the competition irrelevant pdf by w. It unshackles companies from the costly battles of headtohead competition red oceans to find new channels to untapped demand and profitable growth blue oceans. Blue ocean strategy formulation the strategy canvas. With blue ocean strategy tools and analytics, companies can now pursue and create blue oceans. Chan kim and renee mauborgne 2006 blue ocean strategy has been described as a must read for all business students. Furthermore the blue ocean strategy was awarded with. 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. There is ample opportunity for growth tbat is both profitable and rapid. Blue ocean strategy and sustainability for strategic. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Chan kim and renee mauborgne in their bestselling book of the same name. Top best strategy books no matter what profession you are in, you need a strategy to go from a to b.
But in most cases, a blue ocean is created from within a red ocean when a company. 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. China mobile ceo wang jianzhou talked about chinas. Impact of blue ocean strategy on organizational performance.
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. Blue ocean strategy is the most successful book on business. Pdf impact of blue ocean strategy on organizational. Reviewing the blue ocean strategy universiteit twente. Blue oceans, in contrast, are defined by untapped market space, demand. Create a new market space through innovating on the value you give to the customer. 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. As sun tzu rightfully said, all can see the conquering tactics but none can see the strategy that. You may or may not agree with the central philosophy, but you will be inspired. His book blue ocean strategy, coauthored with renee mauborgne, has sold 3. 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. How to create uncontested market space and make the competition irrelevant from the worlds largest community of rea.
Pdf blue ocean strategy for project based organizations. Inside business 360,united states if you are still wondering whether to pick up a copy of blue ocean strategy, we. Blue ocean strategy making the competition irrelevant a. 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. Nov 05, 2016 samsung electronics value innovation conceptual chart cost reduceeliminate unnecessary functions buyer value improve and create functions value. Companies have resorted to developing innovative strategies and. Blue ocean strategy is the international best practice in innovation strategy. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was.
Samsung electronics value innovation conceptual chart cost reduceeliminate unnecessary functions buyer value improve and create functions value. How to create uncontested market space and make competition irrelevant, is a market space that is undeveloped, and untapped by competitors. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Blue ocean strategy blue ocean strategy introduction blue ocean strategy is a marketing book by w. Now you have become a senior analyst in your company. 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. 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. They represent businesses that may not be around today, or werent around until they came on to the scene. Essay about blue ocean strategy 825 words bartleby. Pdf the influence of blue ocean strategy on organizational. The wireless remote control systems were the most notable among these. The four pillars of blue ocean leadership insead knowledge.
Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. This study aims to understand how blue ocean strategy can be. This, the authors refer to as the cornerstone of the blue ocean strategy. The idea in brief the best way to drive profitable growth. Pdf harvard business school press blue ocean strategy. The structure can be created or recreated by the steps taken by players in the market. 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.
These blue ocean success stories exemplify the creation of new markets by reducing and. They are the authors of blue ocean strategy, which has sold over 3. What is blue ocean strategy about blue ocean strategy. The authors are now professors and codirectors of the blue ocean strategy institute at the insead business school in france. It is being published in a recordbreaking 44 languages and is a bestseller across five continents. Blue ocean strategy can be found on amazon blue ocean strategy.
These frameworks and tools are designed to be visual in order to effectively build the collective wisdom of the company and also to effectively execute a. 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. You can think of blue ocean as space that has yet to have been explored by any other business meaning it is a land full of opportunity. This blog article is a overview of some of the key points of the book by w. Blue ocean strategy create uncontestedmarket space makethe competition irrelevant create and capture new demand break the value. The premise on which the blue ocean strategy thesis is built, is a simple one. 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. Blue ocean strategy is a landmark idea founded by w. Bringing structure to your strategy blue ocean strategy tools, methodologies and frameworks bring structure to what has historically been an unstructured problem in strategy informing organizations ability to create new market spaces systematically. May 26, 2015 blue ocean strategy frameworks and tools include. 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 is a book published in 2005 and written by w.
The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. Sep 23, 2014 view the entire blue ocean leadership series here. The book succeeds in showing how businesses, can outdo their competitors. Chan kim is available at in several formats for your ereader. Chan kim e renee mauborgne, professori allinsead e. 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.