Competing in overcrowded industries is no way to sustain. How to create uncontested market space and make the competition irrelevant. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. Blue ocean strategy 3 the diagram below shows the difference between the red ocean strategy and the blue ocean strategy. Blue ocean strategy hbr bestseller harvard business publishing. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades. In a few cases, companies can give rise to completely new industries, as ebay did with the online auction industry. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Red oceans are all the industries in existence today, they are increasi.
They are the authors of the new york times and wall street journal bestseller blue ocean shift. Blue ocean strategy is a book that was written by w. Chan kim and renee mauborgne argue that lasting success comes from creating blue oceans. In the ten years since the first edition of blue ocean strategy was published, professors kim and mauborgne have had myriad conversations with managers. The real opportunity is to create blue oceans of uncontested market space.
In the ten years since the first edition of blue ocean strategy was published, professors kim and mauborgne have had. Blue ocean strategy how to create uncontested market. For example, cirque du soleil didnt follow the red ocean logic of offering a better solution to a given problem, i. Chan kim and renee mauborgne, two distinguished professors of strategy and management with insead, one of the world. The market universe is composed of two types of oceans. The concept of blue ocean strategies is new in the business world as it was first published in 2005 in the bookmanual blue ocean strategy, by w. But its not always clear how to create a blue ocean strategy for yourself. To be distributed in class for the case and part a of the video. It is the strategy that successful firms like apple have used time and time again to deliver new breakthroughs. Blue ocean strategy, the global phenomenon that has sold 3.
Article from hbrs 10 must reads on strategy including featured article what is strategy. The on the blue ocean strategy essay 1969 words 8 pages. Ebook or pdf edited book email encyclopedia article govt. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. 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. List the factors the customer cares about, and current dimensions of competition. 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. Complete list of teaching materials update nov 2019. Blue ocean strategy is the 2015 update to the classic business strategy text of the same name originally published in 2005. Insead was founded in 1957 in france and with the opening of its north american office in new york city. How to create uncontested market space and make the competition irrelevant, w. May 03, 2017 blue ocean strategy, create new markets and leave the competition behind renee mauborgne wobi duration. Find out in the case a blue ocean shift from insolvency to excellence in higher education.
The text offers a practical handbook to business students and entrepreneurs who wish to rise above the fray of the competition, become pioneers in previously uncharted market territory, and gain access to impressive growth opportunities and an untapped customer base. Over 4 million copies sold wall street journal and businessweek bestseller recognized as one of the most iconic and impactful strategy books ever written the global phenomenon that has sold over 4 million copies, is published in a recordbreaking 46 languages and is a bestseller. Blue ocean strategy hbr bestseller hbr store harvard. The text offers a practical handbook to business students and entrepreneurs who wish to rise above the fray of the competition, become pioneers in previously uncharted market territory, and gain access to impressive growth opportunities and an. This blog article is a overview of some of the key points of the book by w. By that we can see that there is a lot of interest by the business people and academics around the world about that subject. Jan 23, 2017 the key is understanding how to create a blue ocean market. You can read blue ocean strategy if you want to learn how the authors suggest you do it, but there is a new and better way. Qantas the australian way praise for blue ocean strategy. Ebook or pdf edited book email encyclopedia article. Recognized as one of the most iconic and impactful strategy books ever written, blue ocean strategy, now updated with fresh content from the authors, argues that cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. From theory to practice case solution, red oceans and blue oceans. Red ocean versus blue ocean strategy red ocean strategy blue ocean strategy compete in existing market space.
Achieved via the delivery of features that have a highest marginal benefit to customer needs. 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. Included is a firsthand video interview with manuel olave describing his blue ocean shift. Pdf blue ocean strategy download full pdf book download. Written by the business worlds new gurus, blue ocean strategy continues to challenge everything you thought you knew about competing in todays crowded market place. 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. How to create uncontested market space and make the competition irrelevant by w. 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. Blue ocean strategy mauborgne and kim, 2005 is about being different from the competition, in a way that truly targets customer needs that have traditionally been overlooked.
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. 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 key is understanding how to create a blue ocean market. How to create uncontested market space and make the competition irrelevant harvard business.
Based on a study of 150 strategic moves spanning more than a hundred years and thirty industries, authors w. By identifying and solving a problem that had never been addressed, prodigy finance created a new market beyond existing industry boundaries, unlocking and capturing burgeoning new demand without displacing or competing with what the financial services sector. Blue ocean strategy introduces analytical tools to minimize risk. Blue ocean strategy is a powerful framework for finding new business opportunities. Chan and renee mauborgne, value innovation, a reconstructionist view of strategy, and appendix b. 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. 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. Chan kim and renee mauborgnes work on creating new market spaces was originally published in the pages of harvard business. Chan kim and renee mauborgne, professors at insead. Chan kim and renee mauborgne, identify mental models that undermine marketcreating strategies. Blue ocean strategy available for download and read online in other formats. The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. The authors conclude that the blueocean strategy or innovation approach is sustainable. But in most cases, a blue ocean is created from within a red ocean when a company.
And for those of you reading in judgement yes you lets keep in mind i went to a state school and i hadnt heard of the book much less the strategy and yes i know i. When expressed through a value curve, an effective blue ocean strategy has three complementary qualities. Blue ocean strategy, harvard business school press, 2005. Blue ocean strategy rejects the tradeoff between value and cost and pursues differentiation and low cost simultaneously. Blue ocean strategy including examples and pdf download. Your logo is irrelevant the 3step process to build a kickass brand the 7 steps to a successful business in a changing market nautical. Tipping point leadership and fair process in action how to implement blue ocean strategy. 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. The real opportunity is to create blue ocean for uncontested market space.
How to create uncontested market space and make the competition irrelevant brand strategy 101. The seminal book blue ocean strategy has sold over 4 million copies globally and is in print in 46 languages. Based on a study of 150 strategic moves spanning more than 100 years. Download for offline reading, highlight, bookmark or take notes while you read blue ocean strategy with harvard business. 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 ocean strategy workshop at disted hospitality campus this short article examines the many ways blue ocean strategy bos can be used to create a better educational system. In the ten years since the first edition of blue ocean strategy was published, professors kim and mauborgne have had myriad conversations with managers and. Competing in overcrowded industries is no way to sustain high performance. There is ample opportunity for growth tbat is both profitable and rapid. Those types of oceans are blood free and lead to easy, safe sailing. Jan 14, 2015 blue ocean strategy is a new way of thinking, a new strategic mindset, a bold new path to winning the future.
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