Blue ocean strategy and sustainability for strategic management. Thus, incentives provide a natural way to weigh opinions. The application of the blue ocean strategy assessing. 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. How to create uncontested market space and make the competition irrelevant pdf blue. Jun 15, 2009 the cornerstone of blue ocean strategy is value innovation. It requires the right research, patience and focus. Blue ocean strategy ppt slides by yodhia antariksa 60197 views. How to create uncontested market space and make the competition irrelevant pdf by w. A selection of blue ocean strategy tools and frameworks strategy canvas, four actions framework, buyer utility map, 3 tiers.
Blue ocean strategy including examples and pdf download. It is about creating and capturing uncontested market space, thereby making the competition irrelevant. There is ample opportunity for growth that is both profitable and rapid. 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. Eight key points of blue ocean strategy heres the essence of blue ocean strategy captured in eight key points. They are the authors of blue ocean strategy, which has sold over.
Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. One is to launch completely new industries, as ebay did with online auctions. Blue ocean strategy formulation the four principles of. The blue ocean strategy was also selected due to its focus on creating new uncontested markets, capturing new demand, and gaining competitive advantage by simultaneously pursuing differentiation and low cost. How to create uncontested market space and make the competition irrelevant by w. The insead blue ocean strategy institute is dedicated to extending the research on blue ocean shift, blue ocean strategy, and blue ocean leadership by. Blue ocean strategy summary by jessestarmer 395542 views. Email us at email protected or ask the author directly by using the form to the right. Adoption of blue ocean strategy by commercial bank of.
Click the link above to read the key concepts and everything you want to know about the blue ocean strategy. In particular, price is used to convey aggregation information to all participants. A blue ocean is shaped when a business achieves value innovation that creates value in chorus for both the buyer and the company. In this article you will learn how to make your competition irrelevant and have sales and profit. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. May 19, 2007 blue ocean strategy presentation by ajay mohan goel 22067 views. 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. List the factors the customer cares about, and current dimensions of competition.
The blue ocean strategy is best illustrated by the performance of cirque du. Most prominently, since 2009 the malaysian government has. Download a pdf of this article and check back next tuesday for how to see your leadership reality. Blue ocean strategy and new business models in the food. The study focused on the adoption of blue ocean strategy by commercial bank of africa limited. How to create uncontested market space and make the competition irrelevant, a. What is blue ocean strategy about blue ocean strategy. An introduction to blue ocean strategy mba knowledge base.
The strategic logic of high growth hbr julyaugust 2004. Plotting your buyer utility map amazon web services. Red oceans represent all the industries in existence todaythe known market space. Indicator prediction markets employ a clear information indicator. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. How to create uncontested market space and make the competition irrelevant. Blue ocean strategy is a landmark idea founded by w. Blue ocean strategy provides a systematic approach to break out of the red ocean of severe competition and make the competition irrelevant by reconstructing market boundaries to create a leap in value for both the company and its buyers. Blue ocean strategy is a strategy that advice companies to go to a new market, which interest. Blue ocean strategy is based on a tenyear study of more than 150 strategic moves spanning more than. Pdf harvard business school press blue ocean strategy rajeh.
Blue ocean strategy presentation by ajay mohan goel 22067 views. Four hurdles to strategy execution blue ocean strategy. Chan kim and renee mauborgne in their book blue ocean. Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. This course introduces the key concepts, frameworks and tools of blue ocean strategy and lays out the fundamental methodology and process for creating and capturing blue oceans. The blue ocean strategy explains how to guide your business across seas with less competition and greater profitability. It is based on the view that market boundaries and industry structure are not a given and can be. A researched case study on blue ocean strategy implementation. Blue ocean is a slang term for the uncontested market space for an unknown industry or innovation.
The insead blue ocean strategy institute is dedicated to extending the research on blue ocean shift, blue ocean strategy, and blue ocean leadership by chan kim and renee mauborgne and disseminating it to professors, researchers and practitioners around the globe. Blue oceans the term blue ocean is an analogy to describe the wider potential of market space that is vast, deep and not yet explored. Blue ocean strategy introduces analytical tools to minimize risk. Red oceans, where competition is fierce in bloody waters, strategy centers around beating rivals, and wins. The concept of blue ocean is based on the idea that the business universe is made up. Sep 24, 2017 blue ocean strategy requires a different mindset. Pdf harvard business school press blue ocean strategy. How is blue ocean strategy different from a classic differentiation strategy. 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.
In red oceans, industry boundaries are defined and accepted, and the. Pdf epub mobi ebooks are now available on this website works on pc, ipad. But its much more common for a blue ocean to be created from within a red. In contrast, red ocean strategy is about how to outcompete in the existing market space. Red ocean vs blue ocean strategy differentiation or low cost differentiation and low cost compete in existing market space create uncontested market space. Imitation barriers to blue ocean strategy value innovation does not make sense to a companys conventional logic blue ocean strategy may conflict with other companies brand image natural monopoly. The application of the blue ocean strategy assessing opportunities for stationary fashion retail companies targeting competitive advantages cindy helinski bachelor thesis business economics business management, corporate governance publish your bachelors or masters thesis, dissertation, term paper or essay.
Learn the concepts of tipping point leadership and fair process that ensure effective execution of blue ocean strategy. Achieved via the delivery of features that have a highest marginal benefit to customer needs. The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. After having dealt with the blue ocean metaphor as well as having clarified the concept of value innovation, the chapter moves on by describing the basic analytical tools and frameworks that characterize the blue ocean strategy. Their core business is to plan, negotiate, buy and release. By using the descriptive method and the theories in strategic management, it is clearly visible how the implementation of blue ocean strategy by pt kintetsu world express indonesia can make the. Understand a strategy canvass document description. Aim of this dissertation is to investigate whether eataly, the largest wine and food marketplace of the world, entered a blue ocean via business model innovation. Since maritime technology has been developed and private companies have put more value on businesses with supporting ocean sustainability than before, the concept of blue economy has received increasing attention and interest. This short paper succinctly describes how bos and iso 3 may be used together as a diagnostic tool for strategizing. 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.
Library of congress cataloginginpublication data kim, w. Furthermore the blue ocean strategy was awarded with. Once a company creates a blue ocean and its powerful performance consequences are known, sooner or later imitators appear on the horizon. Sailing into a blue ocean to understand the power of strategic moves that create blue oceans consider the us wine. The challenge of execution exists, of course, for any strategy. Value innovation strategy competes in an uncontested market space. Updatedrevised 2016 the media industry in pakistan is rapidly growing.
Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. It was built on the notion of creating new markets where competition is irrelevant and the opportunity to grow and be profitable is unlimited. 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. Chan kim and renee mauborgne, professors at insead. 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. 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. Blueocean strategy is about creating and executing such strategic moves that unlock uncontested market space which render competitors irrelevant. 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 book published in 2005 and written by w. Companies pursue blue ocean strategies to make competition irrelevant.
Blue ocean strategy is a strategy that advice companies. Blue ocean strategy and sustainability for strategic. The magic and science of new value innovation 747 environment that is conducive for opinions to aggregate and emerge. The market often cannot support a second player patents or legal permits block imitation. 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. The sustainability and renewal of blue ocean strategy creating blue oceans is not a static achievement but a dynamic process.
Scribd is the worlds largest social reading and publishing site. The cornerstone of blue ocean strategy is value innovation. Companies, like individuals, often have a tough time translating thought into action whether in red or blue oceans. Red ocean in blue oceans, demand is created rather than fought over. Pdf a researched case study on blue ocean strategy. Today, the blue ocean market is evolving into a growth engine for operators, and injecting new momentum into economic growth. Chan kim, renee mauborgne blue ocean strategy, expanded edition. This blog article is a overview of some of the key points of the book by w. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute.
Once a company has developed a blue ocean strategy with a profitable business model, the next challenge is strategy execution. Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to. Red ocean strategy create uncontested market space make the competition irrelevant create and capture new demand compete in existing market space beat the. What is distinctive about blue ocean strategy as a theory. Blue ocean strategy is about creating and executing such strategic moves that unlock uncontested market space which render competitors irrelevant. Blue ocean strategy is based on a tenyear study of more than 150 strategic moves spanning more than 30 industries over 100 years, analysing not only leading business players who created blue oceans but.
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