This paper uses the blue ocean strategy, proposed by kim and mauborgne, to analyze the bandit cellphone strategy. It requires the right research, patience and focus. It reduced costs by using plastic instead of metal, for example, and reducing the parts in each watch from 150 to 50. 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. In a business context, it is inevitable that one of the main words one would hear is competition. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. How to create uncontested market space and make the competition irrelevant from the worlds largest community of rea. Based on a study of 150 strategic moves spanning more than 100 years. 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. 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 strategy canvas provides a highly visual tool to help look at future options. An introduction to blue ocean strategy mba knowledge base.
Through national blue ocean strategy, over 80 ministries and agencies from the police and military, to women, youth, and higher education organizations are collaborating to formulate and. The concept of blue ocean is based on the idea that the business universe is made up. 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. All in all, blue ocean strategy is a book worth reading. 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. 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. Blue ocean strategy presents a systematic approach to making the competition irrelevant and outlines principles and tools any organization can use to create and capture their own blue oceans. May 30, 2017 it reduced costs by using plastic instead of metal, for example, and reducing the parts in each watch from 150 to 50. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. Pdf thinking of the blue ocean strategy beyond the. The book succeeds in showing how businesses, can outdo their competitors. A blue ocean strategy perforce represents a departure from the status quo, fair process is required to facilitate both strategy making and execution by mobilizing people for the voluntary cooperation needed to execute 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. 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.
Apr 14, 2014 through national blue ocean strategy, over 80 ministries and agencies from the police and military, to women, youth, and higher education organizations are collaborating to formulate and. Blue ocean strategy is a value innovation strategic move that opens up new uncontested market, creates new demand, makes the competition irrelevant and helps a company to generate more revenue than competitors that focus narrowly on the existing crowded market. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. Value innovation strategy competes in an uncontested market space. How to create uncontested market space and the make competition irrelevant 2005. Blue ocean strategy including examples and pdf download. You may or may not agree with the central philosophy, but you will be inspired. Blue ocean strategy formulation the four principles of. In this article you will learn how to make your competition irrelevant and have sales and profit. Chan kim and renee mauborgne in their bestselling book of the same name. Sep 26, 2016 the strategy canvas provides a highly visual tool to help look at future options. Essay about blue ocean strategy 825 words bartleby. It is being published in a recordbreaking 44 languages and is a w. 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.
Renee mauborgne is the insead distinguished fellow and a professor of strategy at insead, one of the worlds top business schools. The book titled blue ocean strategy is not helpful to management dont buy it and if you. Seminar paper from the year 2008 in the subject business economics business management, corporate governance, grade. How to create uncontested market space and make the competition irrelevant by w. A lot has been written about it and i would have said practically everything had been said about it until i looked up the book on amazon to see the current price. Nov 14, 2008 blue ocean strategy is a value innovation strategic move that opens up new uncontested market, creates new demand, makes the competition irrelevant and helps a company to generate more revenue than competitors that focus narrowly on the existing crowded market.
Essay on blue ocean strategy a marketing book 1053 words. 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. 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. Furthermore the blue ocean strategy was awarded with. In a red ocean environment the market becomes more fierce and crowded as. Jun 08, 2007 profit model of blue ocean strategy 30.
It was built on the notion of creating new markets where competition is irrelevant and the opportunity to grow and be profitable is unlimited. She is also codirector of the insead blue ocean strategy institute. His book blue ocean strategy, coauthored with renee mauborgne, has sold 3. They represent businesses that may not be around today, or werent around until they came on to the scene. Chan kim and renee mauborgne, professors at insead.
Blue ocean strategy and sustainability for strategic. The idea in brief the best way to drive profitable growth. Chan kim and renee mauborgne in their book blue ocean strategy. Red ocean strategy pdf download download the blue ocean strategy summary pdf. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades. 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. Blue ocean strategy and sustainability for strategic management. This blog article is a overview of some of the key points of the book by w. 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. In a business context, it is inevitable that one of.
The on the blue ocean strategy essay 1969 words 8 pages. Blue ocean strategy is a book published in 2005 and written by w. 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 by w. Inside business 360,united states if you are still wondering whether to pick up a copy of blue ocean strategy, we. Malaysia national blue ocean strategy nbos youtube. Blue ocean strategy blue ocean strategy introduction blue ocean strategy is a marketing book by w. Red oceans represents all the industries in existence read little women online pdf today. Innovation, new market space and creating demand are central characteristics. One key blue ocean strategy tool used in the formulation and communication of the eleventh malaysia plan was the strategy canvas. They are the authors of blue ocean strategy, which has sold over 3.
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. Its authors, insead professors w chan kim and renee mauborgne, continued their steady progress up the thinkers50 list, finishing second to christensen this year. The eleventh malaysia plan used blue ocean strategy tools and frameworks to formulate highimpact, lowcost national strategies that are able to be rapidly executed. Blue ocean strategy pursues differentiation while lowers cost. Inside business 360,united states if you are still wondering whether to pick up a copy of blue ocean strategy, we hope this article will convince you. Venture strategies have been used by large multinationals for decades. Chan kim and renee mauborgne 2006 blue ocean strategy has been described as a must read for all business students.
Blue ocean strategy 1creating blue oceans 3 2 analytical tools and frameworks 23 part two. Blue ocean strategy can be found on amazon blue ocean strategy. The risks of following a blue ocean strategy the adaptive. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. 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. Based on 15 years of research, the authors used 150 successful strategic moves spanning 120 years of business history and across 30 industries to. Reviewing the blue ocean strategy universiteit twente. In this article you will learn the plan they outline for how to make your competition irrelevant and have sales and profit growth in excess of anything you thought was even possible. This analysis provides a good example in the field of strategy and innovation. Blue ocean strategy is a landmark idea founded by w.
The four pillars of blue ocean leadership insead knowledge. Chan kim is available at in several formats for your ereader. Companies pursue blue ocean strategies to make competition irrelevant. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of. Blue ocean strategy is often compared to venture strategy. The premise of the book is that companies can succeed by creating. Achieved via the delivery of features that have a highest marginal benefit to customer needs.
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