Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. 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. Chen, information systems theory and practices blue ocean strategy. After reading you will understand the basics of this powerful strategy tool what is the blue ocean strategy. In the ten years since the first edition of blue ocean strategy was published, professors kim and mauborgne have had. Blue ocean strategy create uncontestedmarket space makethe competition irrelevant create and capture new demand break the value. The creation of blue oceans is about driving costs down while simultaneously driving value up for buyers. Blue ocean strategy is a book published in 2005 and written by w.
Blue ocean strategy is a radical approach to strategy captured in a book written by w. 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 makes companies to come out of ocean of bloody competition by creating market space which is uncontested and that makes the completion irrelevant. Tools and frameworks for creating and capturing blue oceans it is constructed to create a new value curve and when you apply the four actions framework to the strategy canvas of your industry, you get a. The book summarises the thesis that organisations face two key choices. We believe that blue ocean strategy will send you on the right path towards creating your own uncontested space. The real opportunity is to create blue oceans of uncontested market space. Blue ocean strategy is a theory explained in a 2005 book by w. However, the price competition only results in a red. In red oceans, there is a competitiveadvantage worldview, companies are often driven to outperform rivals and capture greater shares of existing or shrinking market space. Download blue ocean strategy pdf including examples.
The bluest ocean strategy for emerging ict business. Blue ocean strategy proposes that businesses can have more success by creating a blue ocean, rather than trying to compete in the red ocean. 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. 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. Monopoly strategy is also called blue ocean strategy where the objective is the decisions leading to competition less environment on their products or services 45. Blue ocean strategy order description 1 article summary 2 blue ocean strategy a list of related materials, with annotations to guide further exploration of the articles ideas and applications 11 further reading competing in overcrowded industries is no way to sustain high performance. The concept of blue ocean is based on the idea that the business universe is made up. Blue ocean strategy, the global phenomenon that has sold over 4 million copies and is recognized as one of the most iconic and impactful strategy books ever written, argues that cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. Value innovation is a new way of thinking about and executing strategy that results in the creation of a blue ocean. Using blue ocean strategy to reduce new product failure. Pdf blue ocean strategy download full pdf book download. Here we explore how entrepreneurs around the globe are using blue ocean strategy to break out of the red ocean and achieve strong results. The on the blue ocean strategy essay 1969 words 8 pages.
It reduced costs by using plastic instead of metal, for example, and reducing the parts in each watch from 150 to 50. There is ample opportunity for growth that is both profitable and rapid. 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. When expressed through a value curve, an effective blue ocean strategy has three complementary qualities. 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. Innovation, new market space and creating demand are central characteristics. What is blue ocean strategy about blue ocean strategy.
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. 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. 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. The blue ocean strategy bos is the strategic organizational approach that is based on the principle that companies should not engage in a. Blue ocean strategy strategic management automotive. Blue ocean strategy is a strategy that advice companies to go to a new market, which interest customers and avoid competition from the existing market.
In a few cases, companies can give rise to completely new industries, as ebay did with the online auction industry. The pdf download includes blue ocean strategy and examples. Welcome to blue ocean strategy were thrilled to have you on board. The book the origin of the terms red and blue oceans comes from blue ocean strategy how to create uncontested market space and make the competition irrelevant. Value innovation value innovation places equal emphasis on value and innovation. Blue ocean strategy tools and frameworks provide a compelling path to achieve just that. R0410d to understand the limitations and sustainability of the blue ocean strategy kim chan w. Blue ocean strategy chapter 14 the four action framework chapter two. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. The automotive industry is claimed to be a blue ocean industry in 1908 18 when henry ford launched the model t but it was also a blue ocean industry according to the authors in 1926 yes that is eighteen years later when gm created a new blue ocean by.
Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to. How to create uncontested market space and make competition irrelevant, is a market space that is undeveloped, and untapped by competitors. How to create uncontested market space and make the competition irrelevant by w. 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 has helped numerous companies and organisations across the globe to create new market space and achieve pro. Pdf harvard business school press blue ocean strategy. 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. The real opportunity is to create blue ocean for uncontested market space. 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 premise of the book is that companies can succeed by creating. 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 based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. They represent businesses that may not be around today, or werent around until they came on to the scene. Blue ocean idea index the blue ocean idea index is a simple but robust test demonstrating how the sequence of utility, price, cost, and adoption form an integral whole to ensure commercial success through blue ocean strategy. 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 including examples and pdf download. Set sail towards your blue ocean jk beteiligung gmbh. Tru group inc blue ocean strategy belongs in the dead sea. 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.
Blue ocean strategy is a landmark idea founded by w. Click here to download the blue ocean strategy summary pdf. Since, dividing up existing demand and benchmarking the competitors, blue ocean strategy is regarding grow demand and break away from the competition. Red ocean in blue oceans, demand is created rather than fought over. Value innovation strategy competes in an uncontested market space. 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. Essay about blue ocean strategy 825 words bartleby. He is known as coauthor of the 2005 book blue ocean strategy. 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 write my essay i need help with my. Blue ocean strategy free download as powerpoint presentation. In october 2004 kim and mauborgne published their theory of blue ocean strategy bos in the. Reviewing the blue ocean strategy universiteit twente.
Professor of mis school of business administration gonzaga university spokane, wa 99258 usa. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Blue ocean strategy and sustainability for strategic. This blog article is a overview of some of the key points of the book by w.
Blue ocean strategy summary click here to read this article. To understand the concept of blue ocean strategy kim chan w. Blue ocean strategy formulation the four principles of strategy formation click here to read this article. It was built on the notion of creating new markets where competition is irrelevant and the opportunity to grow and be profitable is unlimited. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades.