Effective blue ocean strategy should be about risk minimization and not risk taking. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. Kim has an executive role at the insead blue ocean strategy institute as a codirector, and she is a distinguished fellow at insead, where she teaches the different blue ocean strategies and management techniques as we. This blog article is a overview of some of the key points of the book by w. Pdf blue ocean strategy download full pdf book download. The blue ocean strategy framework evolved from a framework called value innovation developed by kim and mauborgne in the late 90s.
Unlike the red ocean strategy, the conventional approach to business. Jun 10, 2019 business model canvas coupled with the blue ocean strategy provides a very strong framework for the evaluating a business model, leading to evolution. Blue ocean strategy is a book published in 2005 and written by w. Blue ocean strategy and blue ocean shift, created by worldrenowned professors chan kim and renee mauborgne, is a new way of thinking, a. It means not cutting costs or adjusting your product to be able to compete but changing your value proposition. Blue ocean strategy 1creating blue oceans 3 2 analytical tools and frameworks 23 part two. 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. Subsequently, after an overview of the main dynamics of competition present in the.
The main idea that powers blue ocean strategy is to create new markets which are thereby devoid of competition instead of competing in existing. Pdf on jan 1, 2017, robi awaluddin and others published business model canvas innovation and blue ocean strategy for efishery find, read and cite all the research you need on researchgate. Business model innovation, competitive strategy, blue ocean strategy, eliminateraisecreatereduce framework, tows matrix, customer value proposition, profit formula, innovation, amazon flywheel, product development, digitallydriven supply chain, ecommerce. Sep 09, 2020 the blue ocean strategy is focused on value innovation which is defined as making the competition irrelevant by creating a leap in value for your buyers and your company, thereby opening up new and uncontested market space. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Blue ocean strategy including examples and pdf download. The cornerstone of blue ocean strategy is creating value innovation creating a leap in value for both the business and its customers, thereby opening up new and uncontested market space. These will be phrased as myths that are then debunked. Competing in overcrowded industries is no way to sustain blue. 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. Download blue ocean strategy, expanded edition pdf free. In the 1890s, the horse and buggy was the primary mode of transportation.
Mauborgne 1997 if you are interested in elevating your organization to excellence in both strategy and innovation, take a look at our stream offerings below. A must read for anyone interested in business strategy, product management and innovation. May 31, 2016 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. Value innovation is the cornerstone of blue ocean strategy. Examining the emergence and evolution of blue ocean. Innovationpoint is a boutique innovation consulting firm focused on the practice of strategic innovation. This prompts companies to be innovative with their products. Blue ocean strategy page 1 main idea the best way to beat your competition is, in fact, to stop competing against them. The database and research have continued to expand.
Value innovation strategy competes in an uncontested market space. Top 20 must read books on innovation collective campus. Blue ocean strategy hbr bestseller harvard business. What determines whether blue ocean strategy is a innovation or generation analytical tool highly depends on the sequence that is used. A systematic way to grow your business without competing renee mauborgne, coauthor of blue ocean strategy and the new book blue ocean shift, on why disrupting an. The seminal book blue ocean strategy has sold over 3. Started as an online bookstore 22 years earlier, amazon has achieved uninterrupted growth by becoming the largest internet bookstore, the largest online marketplace, a media company, and the most successful it service provider. Blue ocean strategy is a book published in 2004 written by w. Blue ocean strategy is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. The strategy canvas the strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. The case describes the business model of one of the worlds largest etailers, inc. The logic behind blue ocean strategy is counterintuitive. Chan kim and renee mauborgne, professors at insead, and the name of the marketing theory detailed on the book. Because value to buyers comes from the offerings utility minus its price, and because value to the company is generated from the offerings price minus its cost, value innovation is achieved only when the.
Chan kim and renee mauborgne the blue ocean strategy book debunks the popular notion that in order to win in business, we must beat the competition. In other words, when you go headtohead against rivals for a share of the existing market, this is like competing in a red ocean. Theirs is not the typical business management books v. 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. Therefore, value innovation looks slightly different in a blue ocean model. Blue ocean strategy and new business models in the food. A onepage reading graphic, or infographic summary in pdf. Blue ocean strategy best practice business strategy. Blue ocean strategy doesnt aim to outperform the competition.
Introduction nintendo, the japanese video game console manufacturing company, is one of the big players in the. Because of widespread access to information and resources today, it becomes too easy for businesses to enter an already established market. Amazon had been at the forefront of innovation, adding and refining technology and changing the way customers shopped. The model requires a deep understanding of what customers need and want both in terms of the usefulness of the new productsservices and their price. 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. Value innovation is distinctively different from the. Blue ocean strategy guides and stimulates innovation.
Examining the emergence and evolution of blue ocean strategy. We call it value innovation because instead of focusing on beating the competition, you focus on making the competition irrelevant by creating a leap in value for buyers and your company, thereby opening up new and uncontested market space. Blue ocean strategy is one of the most influential business ideas of our time. It goes through real world business examples of how blue ocean strategy practically works and the tools to implement the strategy. Pdf business model canvas innovation and blue ocean.
Often, the underlying technology already existsand blue ocean creators link it to what buyers value. Impact of blue ocean strategy on organizational performance. Blue ocean strategy is a marketing strategy and the title of a book that was written in 2004. Value is usually attached to tangible things, but in reality, true value to customers need not be something path breaking.
In this article you will learn how to make your competition irrelevant and have sales and profit. To build a viable business model and ensure that a company profits from the blue ocean it is creating, companies need to build their blue ocean strategy in the sequence of buyer utility, price, cost, and adoption. Fit with the zeitgeist bos was introduced during the mid2000s and. Kim and mauborgne explain there are two ways to create blue oceans. Through this concept organizations can unlock immense value to customers and simultaneously reduce the cost to the company. By this way, a new business model named blue ocean strategy has been introduced by kim and mauborgne 2004a which rapidly gained worldwide publicity and acceptance. Blue ocean strategy is a customerled strategy focusing on existing customers. Blue ocean strategy highlights the distinct differences between marketcompeting red ocean and marketcreating blue ocean strategy and what it. You can also enjoy this summary through our subscription plans keywords. Through a combination of inspiring examples, theory and interactive exercises, the participants in this workshop will follow the blue ocean strategy training agenda formulation process and tools and will be able to apply them to launch a blue ocean strategy initiative, such as product or service innovation, business model innovation, reinventing customer experience or almost any challenge. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. Blue ocean strategy how to create 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.
When expressed through a value curve, an effective blue ocean strategy has three complementary qualities. The innovation management model being discussed for this paper is called the green ocean strategy which is a hybrid theory derived from the more popular theories, blue ocean strategy and red ocean strategy. 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. Our theory is not to be confused with similarlynamed strategies that deal with environmental impact of business. Chan kim and renee mauborgne and is the cornerstone of marketcreating strategy. If you can eliminate unnecessary parts of the business model within y.
Blue ocean strategy, business strategy, innovation, renee mauborgne, w. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades. It offers templates and procedures of which the strategy canvas and the errc grid are an addition to the literature. 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. 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. We blend nontraditional and conventional consulting processes to drive topline growth through new product, service and business model innovation, business strategy for disruptive innovation, leadership development and organizational culture change. Successes and failures of amazons growth strategies. A strategy analysis of nintendo executive summary grin. How to create uncontested market space and make the. Chan kim and renee mauborgnes articles on blue ocean strategy, all in one place. Chan kim and renee mauborgne, are both prominent professors at insead in fontainebleau, france. Blue ocean strategy and new business models in the food industry.
Mushtaq ahmed course instructor institute of business administration university of dhaka submitted by. It aims to make the competition irrelevant by reconstructing industry boundaries. Blue ocean strategy ends with ten cognitive traps that can deter you from creating blue oceans or that jeopardize your execution. They are the authors of the new york times and wall street journal bestseller blue ocean shift. Jul 02, 2014 blue ocean strategy is a well written account of what creative entrepreneurs and value innovation can accomplish. 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. How to create uncontested market space and make the competition irrelevant authors. They ensure that you create a leap in net buyer value. Value innovation is a central concept in blue ocean strategy. Oyo rooms in blue ocean a strategy that is working well.
Dec 31, 2008 blue ocean strategy is a business strategy book that promotes creating new market space or blue ocean rather than competing in an existing industry. Blue oceans seldom result from technological innovation. Furthermore the blue ocean strategy was awarded with. An oldie but a goodie, the authors describe blue oceans as uncontested market space and red oceans harbour vicious competitors that turn oceans blood red. Competing in overcrowded industries is no way to sustain.
Aug 14, 2017 americanborn economist and a business theorist renee mauborgne currently works as a professor for strategy and management theories mis. They urge companies to value innovation that focuses on utility, price, and cost. Utility map, the price corridor of the mass, and the business model. How todays entrepreneurs use continuous innovation to create radically successful businesses hardcover. Mar 20, 2020 to illustrate how blue ocean strategy can be used in a variety of industries, well cover three very different industries automobiles, computers, and movie theaters. Opportunities come from tapping the blue ocean new markets where there is limited competition. In this summary, well give a synopsis of the key concepts, tools and tips from the book. Thought this book was such an interesting read, i am a nerd as i couldnt put it down.
409 930 425 793 1114 855 10 1708 1275 1448 943 1554 1085 1112 631 310 760 1015 1489 1079 191 378 985 1084 1232 1310 1818 1672 661 275 1163 1630 419 728 819 383 36 1584 1762