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. I hope it inspires you to share feedback about some of the blue ocean strategies youve used at your organization. In this article you will learn how to make your competition irrelevant and have sales and profit. Chan kim and renee mauborgne, professors at insead. Examining the emergence and evolution of blue ocean strategy. 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. 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. Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. Based on a study of 150 strategic moves spanning more. Chan kim and renee mauborgne suggest blue ocean strategy. 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.
Article from hbrs 10 must reads on strategy including featured article what is strategy. Achieved via the delivery of features that have a highest marginal benefit to customer needs. When expressed through a value curve, an effective blue ocean strategy has three complementary qualities. Red oceans represent all the industries in existence todaythe known market space. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Despite a longterm decline in the circus industry, cirque du soleil has profitably increased revenues twentytwofold over the last 10 years by reinventing the circus. The four pillars of blue ocean leadership insead knowledge.
The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. To read a more lengthy, indepth article on the blue ocean strategy go to. 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. Be sure to explain how and why youve focused on the critical forces that youve identified.
Blue ocean strategy is the bestselling book which launched a worldwide revolution in business strategy. There is ample opportunity for growth tbat is both profitable and rapid. Chan kim and renee mauborgne from the october 2004 issue a onetime accordion player, stilt walker, and fireeater, guy laliberte is now ceo of one of canadas largest cultural exports, cirque du soleil. Summary of blue ocean strategy 2004 value based 23 minutes rather than competing within the confines of the existing industry or trying to steal customers from rivals bloody or red ocean strategy in the hbr of october 2004 w. How to create uncontested market space and make the competition irrelevant hardcover. Blue ocean strategy theory and criticism 1246 words 5 pages. Mauborgne and kim cite cirque du soleil as a prominent example of blue ocean strategy.
Essay about blue ocean strategy 825 words bartleby. It is about creating and capturing uncontested market space, thereby making the competition irrelevant. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts. Click the link above or the picture below to read more. A detailed explanation of the potential for new entry andor effective substitute competition, based on a relevant blue ocean strategy analysis and other concepts youve learned from your mba program. But in most cases, a blue ocean is created from within a red ocean when a company. Blue ocean strategy is a book published in 2005 and written by w. Blue ocean strategy bos is a management concept which. Outline the main components of kim and mauborgnes 2004 concept of blue ocean strategy. Chan kim is a professor of strategy and management at insead and codirector of the insead blue ocean.
Blue ocean strategy ppt slides linkedin slideshare. Value innovation strategy competes in an uncontested market space. Some strategic planning models are based on theories that dont quite pan out during gotomarket executions. Blue ocean strategy including examples and pdf download. 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 blog article takes a look at what kind of roi some companies have achieved by implementing a blue. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move. The structure can be created or recreated by the steps taken by players in the market. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand. 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. The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. Challenging the conventional competition based approaches to business strategy, blue ocean. It is based on the view that market boundaries and industry structure are not a given and can be. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant.
Furthermore the blue ocean strategy was awarded with. The on the blue ocean strategy essay 1969 words 8 pages. Critically assess the strengths and limitations of this approach to pursuing competitive advantage. List the factors the customer cares about, and current dimensions of competition. The result is that in more and more industries, supply is overtaking demand. Founded in 1984 by a group of street performers, cirque has staged dozens of productions seen by some. 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 premise of the book is that companies can succeed by creating. Competing in overcrowded industries is no way to sustain blue. How to create uncontested market space and make the competition irrelevant by w. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades. Chan kim is a professor of strategy and management at insead and. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. Oct 2004 despite a longterm decline in the circus industry, cirque du soleil profitably increased revenue 22fold over the last ten years by reinventing the circus.
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. 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. This blog article is a overview of some of the key points of the book by w. Jul 21, 2010 blue ocean strategy is the bestselling book which launched a worldwide revolution in business strategy. 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. What is blue ocean strategy about blue ocean strategy. In contrast, blue ocean strategy originated from a study that took place over 10 years and analyzed company successes and failures in more than 30 industries. Blue ocean strategy, harvard business school press, 2005. Rather than competing within the confines of the existing industry or trying to steal customers from rivals bloody or red ocean strategy in the hbr of october 2004 w. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Rather than competing within the confines of the existing industry or trying to steal customers from rivals. At its inception in 1984, cirque faced a gauntlet of seemingly insurmountable hurdles. 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.
Blue ocean strategy introduces analytical tools to minimize risk. Competing in overcrowded industries is no way to sustain. The strategic logic of high growth hbr julyaugust 2004. In a few cases, companies can give rise to completely new industries, as ebay did with the online auction industry.
This blog article takes a look at what kind of roi some companies have achieved by implementing a blue ocean strategy by w. Chan kim and renee mauborgne, it sold more than a million copies within its first year of publication and has been translated into 39 languages, breaking harvard publishing records as the fastest selling. Blue ocean strategy hbr bestseller harvard business publishing. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. To understand the nature of cirques achievement, you have to realize that the busi. 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. How to create uncontested market space and make competition irrelevant has had a huge impact worldwide. Chan kim is a professor of strategy and management at insead and codirector of the insead. Reviewing the blue ocean strategy universiteit twente. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. 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. 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.
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