In this article you will learn how to make your competition irrelevant and have sales and profit. Value innovation value innovation places equal emphasis on value and innovation. Based on 15 years of research, the authors used 150 successful strategic moves spanning 120 years of business history and across 30 industries to. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades. 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. Various types of strategies are used in strategic management such as red ocean strategy, blue ocean strategy, green ocean strategy and purple ocean strategy. The profit is much easier than the rivalry with the competition on existing markets. We believe that blue ocean strategy will send you on the right path towards creating your own uncontested space. Pdf thinking of the blue ocean strategy beyond the. To learn more about the power of blue ocean strategy, visit blueoceanstrategy. Blue ocean strategy is a landmark idea founded by w.
Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. Blue ocean strategy formulation the four principles of strategy formation click here to read this article. Recognized as one of the most iconic and impactful strategy books ever written, blue ocean strategy argues that cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. The idea in brief the best way to drive profitable growth. This book brings the best of those articles together all in one place. 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 is when an organization breaks away from the conventional approach to facilitate the creation of new uncontested market space thereby making competition irrelevant. Jul 28, 2018 blue ocean strategy was coined by professors w. This was a blue ocean opportunity staring them in the face. Innovation, new market space and creating demand are central characteristics. Chan kim born 1952 is a koreanborn business theorist, professors of strategy and management at insead, and codirector of the insead blue ocean strategy institute in fontainebleau, france. Blue ocean strategy summary click here to read this article.
Dipersiapkan tidak secara khusus, melainkan lewat kumpulan tulisan yang dibuatnya bersama renee mauborgne selama 15 tahun, blue ocean strategy. 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. Jun 21, 2007 blue ocean strategy red ocean strategy 2. Since, dividing up existing demand and benchmarking the competitors, blue ocean strategy is. Did oyo rooms create a blue ocean within the indian hotel industry. Based on 15 years of research, the authors used 150 successful strategic moves spanning 120 years of business history and across 30 industries to bring the blue.
The risks of following a blue ocean strategy the adaptive. This short video describes the reach of blue ocean strategy concepts tools and methodologies created by business school professors chan kim and renee mauborgne around the world. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. The blue ocean strategy bos is the strategic organizational approach that is based on the principle that companies should not engage in a competitive struggle but that. Directly inspired by blue ocean strategy shift and coorganized since 2014 by hec paris, axessio and the french directorate general of enterprises dge, the blue ocean awards is the first competition in france to recognize french companies, of all sizes, that are striving to create their blue ocean.
Testing the validity of blue ocean strategy versus competitive. Using blue ocean strategy to reduce new product failure. Blue ocean strategy seeks to turn strategic management on its head by replacing competitive advantage with value innovation as the primary. Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to. Blue ocean strategy is about creativity and finding new markets that allow a company not to get involved inand bogged down byhyper competition, said w.
Chan kim and renee mauborgne in their book blue ocean strategy. Chan kim and renee mauborgne in their bestselling book of the same name. Blue ocean strategy and sustainability for strategic. Based on a study of 150 strategic moves, spanning more than 100 years across 30 industries, the authors, chan kim and renee mauborgne show that lasting success comes not. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Maak concurrentie onbelangrijk met een blauwe oceaan strategie.
We investigate the nature of the competition process in retailing by contrasting blue ocean strategy and competitive strategy. One way is to implement blue ocean strategy that allows businesses to create a niche market to get out of the red ocean competition so that competition becomes irrelevant. Blue ocean strategy is a book published in 2005 and written by w. 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. Blue ocean strategy is a method of creating business strategy of the enterprise, which was described in a book by w. 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. How to create uncontested market space and make the competition irrelevant pdf by w. Buku blue ocean strategy, profesor kim, adalah salah seorang ahli manajemen strategi. 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. May 26, 2015 summary of the first four chapters of the international bestseller blue ocean strategy. List the factors the customer cares about, and current dimensions of competition. Value innovation strategy competes in an uncontested market space. Since, dividing up existing demand and benchmarking the competitors, blue ocean strategy is regarding grow demand and break away from the competition. Oyo rooms an indian example of blue ocean strategy.
Very few businesses reach the transparency level that buffer openly embraces. Blue ocean strategy blue ocean strategy is a strategic move that organizations or individuals use to create new product or ideas. 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. To create a blue ocean strategy, organizations must be committed to value innovation. Blue ocean strategy is the title of a book published in 2005 and written by w. Click here to download the blue ocean strategy summary pdf. The concept of blue ocean is based on the idea that the business universe is made up. However, there is a large difference between these two approaches. 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.
Venture strategies have been used by large multinationals for decades. 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. Blue ocean strategy workshop at disted hospitality campus. Blue ocean strategy is a systematic approach to finding innovative, cost efficient, value adding, productmarket matches. Red oceans are all the industries in existence today the. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. Blue ocean strategy and sustainability for strategic management. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Extreme openness is another blue ocean technique that buffer uses on their open blog. After reading you will understand the basics of this powerful strategy tool what is the blue ocean strategy.
Blue ocean strategy uses three characteristics to determine a viable strategy. Blue ocean strategy is the bestselling book which launched a worldwide revolution in business strategy. This short article examines the many ways blue ocean strategy bos can be used to create a better educational system. This international bestselling book sold more than a million copies in its first year of publication, and has. In order to unlock a blue ocean, a companys strategic profile should clearly show a strong focus, stand apart from competition, and have a clearly understood tagline that communicates the. Challenging the conventional competition based approaches to business strategy, blue ocean. Blue ocean strategy is a business strategy book, first published on february 3, 2005 by the harvard business school press. 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. How to create uncontested market space and make the competition irrelevant by w. How to create uncontested market space and make the competition irrelevant, w. Blue ocean strategy formulation the four principles of. The insead blue ocean strategy institute is dedicated to extending the research on blue ocean shift, blue ocean strategy, and blue ocean leadership by. Aug 28, 2012 blue ocean strategy is often compared to venture strategy. Some strategic planning models are based on theories that dont quite pan out during gotomarket executions.
They represent businesses that may not be around today, or werent around until they came on to the scene. 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. Blue ocean strategy is based on the idea that every enterprise can achieve higher profit by creating new demand in noncompetitive market so called blue ocean. It was built on the notion of creating new markets where competition is irrelevant and the opportunity to grow and be profitable is unlimited. 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. Blue ocean strategy is innovative, and it creates a. 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.
An introduction to blue ocean strategy mba knowledge base. Blue ocean strategy is a marketing theory and the title of a book published in 2004 written by w. This is undefined market space, otherwise known as opportunity. How to create uncontested market space and the make competition irrelevant 2005.
High competitions price wars low profit margin exploiting existing demand oversatured market red ocean 10. Blue ocean strategy including examples and pdf download. Blue ocean strategy institut fur managementinnovation. Essay about blue ocean strategy 825 words bartleby. What is blue ocean strategy about blue ocean strategy. Welcome to blue ocean strategy were thrilled to have you on board. This analysis provides a good example in the field of strategy and innovation.
Blue ocean pedagogical materials, used in over 2,800 universities and in almost every country in the world, go beyond the standard casebased method. Blue ocean strategy merupakan buku pertamanya yang langsung laris manis diserap pasar di pelbagai penjuru dunia. Blue ocean strategy is a bad book, but it is not your usual bad book. 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. Click the link above to read the key concepts and everything you want to know about the blue ocean strategy.
It reduced costs by using plastic instead of metal, for example, and reducing the parts in each watch from 150 to 50. This article explains the blue ocean strategy, developed by w. The creation of blue oceans is about driving costs down while simultaneously driving value up for buyers. Jul 21, 2010 blue ocean strategy is the bestselling book which launched a worldwide revolution in business strategy. Reviewing the blue ocean strategy universiteit twente. Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. This blog article is a overview of some of the key points of the book by w. Explore how blue ocean strategy has been applied around the world to transform the public sector on the local, state, and national levels. Value innovation is a new way of thinking about and executing strategy that results in the creation of a blue ocean. These strategies are used in organizations by top level executive managers for long term organizational sustainability and to face or deviate from the competition. Black ocean strategy a probe into a new type of strategy. 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. The authors are now professors and codirectors of the blue ocean strategy institute at the insead business school in france.
He is known as coauthor of the 2005 book blue ocean strategy. 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 premise of the book is that companies can succeed by creating. Blue ocean strategy ist eine methode zur entwicklung dauerhaft profitabler geschaftsmodelle aus dem bereich des strategischen managements. The process sounds very much like how bos is used every day in the business world because not surprisingly, people in practically any industry ask similar questions. Furthermore the blue ocean strategy was awarded with. Set sail towards your blue ocean jk beteiligung gmbh. There youll find all the resources you needfrom ideas in practice and cases from government and private industry, to teaching materials, mobile apps, realtime updates, and tips and tools to help you make your blue ocean journey a success. Blue ocean versus competitive strategy repub, erasmus. The on the blue ocean strategy essay 1969 words 8 pages. 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. Made by group d of the minor global trendwatching 2015. 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 buffer blog has exposed a blue ocean strategy by harnessing acumen for research and compiling data. 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. Blue ocean strategy is a theory explained in a 2005 book by w. Today, oyo rooms has a presence in 174 cities with over 4500 properties. Blue ocean strategy introduces analytical tools to minimize risk. Chan kim and renee mauborgne, professors at insead. Blue ocean strategy has helped numerous companies and organisations across the globe to create new market space and achieve pro. Pdf blue ocean strategy download full pdf book download. 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. The seminal book blue ocean strategy has sold over 3.
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. When expressed through a value curve, an effective blue ocean strategy has three complementary qualities. This blog post examines the companys strategy and using the four actions framework it analyses what the hotel chain eliminated, reduced, raised and created to differentiate itself from the competition. This paper uses the blue ocean strategy, proposed by kim and mauborgne, to analyze the bandit cellphone strategy.
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