Blue ocean strategy, strategic thinking, red ocean, innovation, concept. But in most cases, a blue ocean is created from within a red ocean when a company. This paper suggests using blue ocean strategy bos to instigate the implementation of sustainability initiatives guided by the similarity between bos and sustainability in terms of their drive for innovation and value. In 2010, polish group thinktank selected blue ocean strategy as one of the top 20 books that have shaped polish leaders. Brickandmortar retailers still competed on variety and touchandfeel, while online competitors sought to differentiate through low prices and fast shipping.
Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. Download and read online blue ocean strategy, expanded edition, ebooks in pdf, epub, tuebl mobi, kindle book. Blue ocean strategy including examples and pdf download. When expressed through a value curve, an effective blue ocean strategy has three complementary qualities. This is done by introducing the bos and sustainability conceptual framework, which strategic managers can use as a guiding principle in the development of the organizations. To offer buyers a quantum leap in value and break the valuecost tradeoff, blue ocean strategists focus as much on what to eliminate and reduce as they do on what to raise and create. Blue ocean strategy is the 2015 update to the classic business strategy text of the same name originally published in 2005. Dec 17, 2019 retail had always fascinated katrina lake, the youngest woman ceo to ever lead a us initial public offering. Competing in overcrowded industries is no way to sustain high performance. Apr 03, 2010 formulating blue ocean strategy 75 mins 120 mins 120 mins exploration. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. Pdf blue ocean strategy, expanded edition ebook download.
It graphically captures, in one simple picture, the current strategic. The blue ocean strategy will be clearcut and easy to communicate meaning it will be able to be described in a tagline that is compelling and. A company will have more success, fewer risks, and increased profits in a blue ocean market. This blog article is a overview of some of the key points of the book by w. Blue ocean strategy competing in overcrowded industries is no way to sustain high performance. As competitors converged on wawa, management recognized the need for a new direction. When a companys value curve, or its competitors, meets the three criteria that define a good blue ocean strategy focus, divergence, and a compelling tagline that speaks to the marketthe company is on the right track. Five steps to making a blue ocean shift blue ocean strategy.
It should be noted that most new business launches today are launches in the red ocean domain. How to create uncontested market space and make the competition irrelevant, w. The risks of following a blue ocean strategy the adaptive. 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. How does blue ocean strategy differ from red ocean strategy. The blue ocean strategy will diverge from that used by other industryplayersbecauseyourelookingacrossalternatives rather than solely attempting to be better than the established players. Based on a study of 150 strategic moves spanning more than 100 years. The more your offering differs from the competitions the more likely your blue ocean strategy will truly be a new offering. The strategy canvas is a central diagnostic tool and an action framework of blue ocean. See comparison between red and blue ocean strategies here in one simple table. What is blue ocean strategy about blue ocean strategy.
Formulating blue ocean strategy 3reconstruct market boundaries 47 4focus on the big picture, not the numbers 81 5reach beyond existing demand 101 6 get the strategic sequence right 117 fmkim. 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 opportunities and an untapped customer base. There is ample opportunity for growth tbat is both. A blue ocean strategythe first question the value curves answer is whether a business deserves to be a winner. How to be a blue ocean strategist in the postpandemic world.
The piece showed how companies can gain a competitive advantage without challenging their competitors in the first direction, but by finding the undeniable blue ocean markets to conquer instead. Nov 25, 2020 a blue ocean strategist doesnt choose between pursuing differentiation and low cost. Chan kim and renee mauborgne argue that lasting success comes from creating blue oceans. Blue ocean strategy ends with ten cognitive traps that can deter you from creating blue oceans or that jeopardize your execution. Blue ocean strategy is based on time and again proven data rather than unproven theories.
It develops mental horizons and helps in recognizing the opportunities. Blue ocean structure and price, blue ocean strategy is strategies, by contrast, are based on a world achieved only when the whole system of a view in which market boundaries and indus companys utility, price, and cost activities is tries can be reconstructed by the actions and properly aligned. Blue ocean strategy is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. Blue ocean shift is the essential follow up to blue ocean strategy, the classic and over 4millioncopy global bestseller by worldrenowned professors chan kim and renee mauborgne. They are the authors of blue ocean strategy, which has sold over 3. 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. The real opportunity is to create blue oceans of uncontested market space. Blue ocean strategy doesnt aim to outperform the competition. Drawing on more than a decade of new research, blue ocean shift is the definitive guide to help you move beyond competing, inspire your peoples confidence, and. It is a simultaneous process of opening a new business market and. If you truly have a blue ocean mindset, you do both.
Blue ocean strategy hbr bestseller harvard business. 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. There is ample opportunity for growth tbat is both profitable and rapid. The database and research have continued to expand. Based on a study of 150 strategic moves spanning more than a hundred years and thirty industries, authors w. But she couldnt help noticing that the ageold industry never changed. Value innovation strategy competes in an uncontested market space. The idea in brief the core idea the idea in practice putting the idea to work 1 article summary 2 blue ocean strategy a list of related materials, with annotations to guide further exploration of the articles ideas and. These will be phrased as myths that are then debunked. Blue ocean strategy focuses on the ability to create new market space where there is no competition and where the demand for the services becomes uncontested. Blue ocean shift is the essential followup to blue ocean strategy, the classic 3.
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. In a few cases, companies can give rise to completely new industries, as ebay did with the online auction industry. Whereas conventional strategic approaches drive companies to define their industry similarly and focus on being the best within it, blue ocean strategy prompts them to break out of the accepted. 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. Blue ocean strategy 1creating blue oceans 3 2 analytical tools and frameworks 23 part two. 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. May 12, 2020 blue ocean strategy enables a fundamental transformation in mindset. Pdf blue ocean strategy and sustainability for strategic. Blue ocean strategies can be depicted on a strategy canvas, which shows how your offering and competing offerings stack up along a range of factors. It is based on practical approaches that have proven results during live market executions. Competing in overcrowded industries is no way to sustain blue. Blue ocean strategy how to create uncontested market space.
Blue ocean strategy is a customerled strategy focusing on existing customers. 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. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. It reveals how similar yours and your competitors strategies look to buyers and customers and why this is driving your industry toward the red ocean. She realized that artificial intelligence and human. Get free blue ocean strategy, expanded edition textbook and unlimited access to our library by created an account. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades.
Based on the analysis of the blue ocean strategy bos of the srikandi organizer, it can be concluded that the company needs to proceed a number of changes and innovations to be able to optimize. 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. 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. Blue ocean strategy how to create uncontested market space and make the competition irrelevant objectives what is blue ocean. Chan kim and renee mauborgne, professors at insead. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Written by the business worlds new gurus, blue ocean strategy continues to challenge everything you thought you knew about competing in todays crowded market place. Chan kim and renee mauborgne together introduced the blue ocean strategy in 2005. It aims to make the competition irrelevant by reconstructing industry boundaries.
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