Vol5, issue 4 international journal of management sciences and. The on the blue ocean strategy essay 1969 words 8 pages. Set sail towards your blue ocean jk beteiligung gmbh. Here are a few examples of blue ocean strategic moves from a variety of different industries and sectors. Summary capter 1 4 of blue ocean strategy by lauri di vino. See examples of strategic moves that enabled organizations to successfully break out of red oceans and create blue oceans of uncontested market space. Blue ocean strategy including examples and pdf download. Strategy canvas excel template blue ocean strategy. Blue ocean strategy is a landmark idea founded by w. Blue ocean strategy has helped numerous companies and organisations across the globe to create new market space and achieve pro.
Blue ocean challenges companies to push the boundaries of their industries and offer consumers something unique of immense value. Ikea has been successful in nanjing by implementing a blue ocean strategy that is. The report focuses on three relevant issues regarding. Strategy and thinking is not limited by preconceived barriers, and a shift happens from a focus on the supply side to a focus on the demand. There are two types of oceans in this world, according to authors w. Sep 24, 2017 blue ocean strategy requires a different mindset. The authors allude to the fact that most companies borrow their strategic thinking from military models see paradox of strategy.
The first example of blue ocean strategy comes from computer games giant, nintendo, in the form of the nintendo wii. The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. One is to launch completely new industries, as ebay did with online auctions. Blue ocean strategy is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. Jul 16, 2015 the blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. The structure can be created or recreated by the steps taken by players in the market. Click the link above to read the key concepts and everything you want to know about the blue ocean strategy. Companies have resorted to developing innovative strategies and subsequently suitable portfolios have been created for the implementation of. Their book teaches readers how to create uncontested markets for. But its not always clear how to create a blue ocean strategy for yourself.
At the end of all rounds of the simulation, our company health was as follows. Explain these from the perspective of company, competition, costs, and markets. Competing in overcrowded industries is no way to sustain high performance. Pdf business competition among companies has led to major changes. Chan kim and renee mauborgne in their book blue ocean. Blue ocean strategy is a consistent pattern of strategic thinking behind the creation of new markets and. Red ocean in blue oceans, demand is created rather than fought over. 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. This blog article is a overview of some of the key points of the book by w.
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 chapter 14 the four action framework chapter two. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. Chan kim and renee mauborgne 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. Companies pursue blue ocean strategies to make competition irrelevant. Curves fitness industry case study blue ocean strategy. Bos in order to optimize the implementation of blue ocean strategy, making the value of the company and the products to be. The competition on the market is getting stronger and more difficult to overcome. Blue ocean strategy and sustainability for strategic management. Value innovation strategy competes in an uncontested market space.
Chan kim and renee mauborgne provide tools and frameworks for creating blue oceanstheir term for all the industries not in existence today. Pdf harvard business school press blue ocean strategy rajeh. The risks of following a blue ocean strategy the adaptive. The blue ocean strategy works to create an untapped marketplace outside of the traditional market boundaries. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. The nintendo wii launched in 2006 and at its heart is the concept of value innovation. Strategy canvas excel template blue ocean strategy subject. Chan kim and renee mauborgne in the indie business book club. Guest columnist blue ocean strategys fatal flaw by wayne e. Ive been quoted for saying that strategies are dead. Strategy in the age of digital disruption online insead blue ocean strategy. 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.
Using blue ocean strategy to reduce new product failure. We believe that blue ocean strategy will send you on the right path towards creating your own uncontested space. The strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. Jul, 2018 our study shows that blue ocean strategy is particularly needed when supply exceeds demand in a market, kim explained in an article on forbes. Pdf blue ocean strategy for project based organizations. What are some successful examples of blue ocean strategy. Welcome to blue ocean strategy were thrilled to have you on board. With the launch of itunes, apple unlocked a blue ocean of new market space in digital music that it has now dominated for more than a decade. Blue ocean strategy is a book published in 2005 and written by w. While the book is aimed primarily at large, traditional businesses, our book club members managed to scale some of the advice to fit our needs. A business strategy contains a number of key principles that outlines how a company will go about attaining these goals. For that there is nothing better than something called the blue ocean strategy. An introduction to blue ocean strategy mba knowledge base.
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. 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 rich blue sea without competitors. 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. Blue ocean is a slang term for the uncontested market space for an unknown industry or innovation. There is ample opportunity for growth that is both profitable and rapid. This blog article takes a look at what kind of roi some companies have achieved by implementing a blue ocean strategy by w. This template includes most popular strategic models, matrixes and many more. The real opportunity is to create blue oceans of uncontested market space. When we think of competition between companies like coke and pepsi or walmart and costco, we think of competitors fighting to. Cmo home opinion guest columnist blue ocean strategys fatal flaw by wayne e.
Blue ocean strategy is a strategy that advice companies. Over the last several decades, product development efforts have seen unacceptably high new. Jun 08, 2007 profit model of blue ocean strategy 30. When we think of competition between companies like coke and pepsi or walmart and costco, we think of competitors fighting to get the biggest share of. Blue ocean strategy implementation ikeas competitive strategy is blue ocean strategy, which led ikea create leading position in local furniture industry. While the recording industry fought to stop the cannibalization of. I believe it, of course, but thats no excuse for not knowing how your blog stands out from the competition. 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. For example, apple observed the flood of illegal music file sharing that began in. By 2003 more than two billion illegal music files were being traded every month. 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. It requires the right research, patience and focus. Blue ocean strategy blue ocean strategy is a strategic move that organizations or individuals use to create new product or ideas. The strategy can transform a current product or idea or create something total new.
Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to. Apple observed the flood of illegal music file sharing that began in the late 1990s, enabled by file sharing programs such as napster, kazaa, and limewire. How to create uncontested market space and make the competition irrelevant, a book by professors w. The only thing that i am not very fond of the book is that theres too much repetition in the book until i got bored going through the 230 or so pages. Chan kim and renee mauborgne, the writers of the 2005 book blue ocean strategy. Essay about blue ocean strategy 825 words bartleby. Blue ocean strategy paper adel erolsky university of phoenix mkt421 ron rosalik august 25, 2014 blue ocean strategy paper in todays business world, competition is a big concern for nearly every corporation. A business strategy, in simple terms, is a documented plan on how an organization is setting out to achieve their goals. Furthermore the blue ocean strategy was awarded with. Click the link above or the picture below to read more. 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. This is a key principle of blue ocean strategy which sees low cost and differentiation being pursued simultaneously. Pdf blue ocean strategy as a tool for improving a companys. 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.
But its much more common for a blue ocean to be created from within a red. Before we dive into blue ocean strategy examples, lets get clear on what a. By defining and seeing examples of the blue ocean strategy, your organization can learn how to execute on this strategic planning model and successfully reconstruct your market. We owned a 14% market share with red box and 15% market share with blue box. Summary capter 1 4 of blue ocean strategy by lauri di. Most prominently, since 2009 the malaysian government has. The theory and practice of strategy in business organizations s. Blue ocean strategy is innovative, and it creates a new market instead of fitting into the current market. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking.
The blue ocean strategy explains how to guide your business across seas with less competition and greater profitability. Blue ocean strategy promises to change the destructive cycle of market crowding. The blue ocean strategy can be extremely rewarding, but can also be the most work intensive. Achieved via the delivery of features that have a highest marginal benefit to customer needs. How to create uncontested market space and make the competition irrelevant by w. May 30, 2017 t his month, we read blue ocean strategy by w. 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.
Our team in the blue ocean strategy simulation was anuket. 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. How to create uncontested market space and make the competition irrelevant, is very informative. Blue ocean strategy and sustainability for strategic. Jofre foreword the present report is the result of an ongoing study on the patterns and trends on both the theory and practice in the field of strategic management. Blue ocean shift is packed with realworld examples of organizations facing the same constraints we all face be they politics, bureaucracy, or limited resources that applied the very tools and process outlined in the book to shift from competi. The objective of blue ocean strategy is to make competition irrelevant by creating a new value curve for both customers and the company itself. Chan kim and renee mauborgne provide tools and frameworks for creating blue oceanstheir term. Dell builttoorder computers in the mid1990s, deli created a blue ocean in a highly.