Beyond competing proven steps to inspire confidence and. The strategy aims to capture new demand, and to make competition irrelevant by introducing a product with superior features. If it does, that is a happy accident, rather than the main goal. Qantas the australian way praise for blue ocean strategy.
How to create uncontested market space and make the. Because of widespread access to information and resources today, it becomes too easy for businesses to enter an already established market. How to create uncontested market space and make competition irrelevant, is a market space that is undeveloped, and untapped by competitors. How to create uncontested market space and make the competition irrelevant, a book by professors 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. Achieved via the delivery of features that have a highest marginal benefit to customer needs. The fundamental premise is that most companies fight competitors headtohead in the same space, chasing the same customers with very similar products, creating a bloodyred ocean in their feeding frenzy. Chan kim and renee mauborgne rank in the top 5 management gurus in the world in the thinkers50 list, a. Learn why finding and developing blue ocean markets is your organizations best chance for growth and profitability. A pathbreaking strategy known as blue ocean strategy is a pacifist marketing scheme and is considered a strategic planning tool for assessing a business. Here is the book descriptions extracted from amazon.
It helps the company in make huge profits as the product can be priced a little steep because of its. Blue ocean strategy is an important book for anyone seeking a strategy that can help them in their career and in business. View notes blue ocean strategies summary from mgmt 430 at university of washington. Pros and cons of blue ocean strategy essay example. Among them, published in 2005 by harvard business school press, blue ocean strategy has probably received highest attention and acclamation.
It reduced costs by using plastic instead of metal, for example, and reducing the parts in each watch from 150 to 50. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Blue ocean strategy including examples and pdf download. Chan kim and renee mauborgne introduced the difference between a red ocean and a blue ocean, both of which are metaphors for market spaces. Meet the blue ocean strategy summary by roadmap planner team. Red oceans, where competition is fierce in bloody waters, strategy centers around beating rivals, and wins are often zerosum.
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. To ask other readers questions about blue ocean strategy, please sign up. It asserts that for businesses to win in the future, they must stop competing. The blue ocean strategy explains how to guide your business across seas with less competition and greater profitability. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w.
Blue ocean strategy is a book published in 2005 and written by w. But its not always clear how to create a blue ocean strategy for yourself. In this article you will learn how to make your competition irrelevant and have sales and profit. While this came in appendix a in the book, this is a good time to cover three industries with repeated blue ocean creation. For generations, business schools have taught some form of strategy for business leaders to execute when they are in a business that faces fierce. How to create uncontested market space and make the competition irrelevant by w. Considering that this japanese method has been in existence for 6070 years now, it is interesting to know that originators of hoshin kanri have given equal or even more emphasis on strategy execution way back then. There are a number of things i like about it, but perhaps what i find most useful is that it provides a great roadmap to creating new products that stand out from the competition. In this summary, well give a synopsis of the key concepts, tools and tips from the book. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. Pdf harvard business school press blue ocean strategy. Blue ocean strategy is the most successful book on business masterplanning. Blue ocean strategy uses three characteristics to determine a viable strategy. Since, the industries are in a state of non existence, there is absolutely no relevance of peer.
It is a dangerous bad book because it takes some thinking to figure out why it is bad, despite its success, and despite the fact that its key metaphor of blue ocean vs. How to create uncontested market space and make the competition irrelevant from the worlds largest community of rea. The main goal of a company in this market is to beat competitors. What is the difference between red and blue oceans. It is a marketing theory from the similarlynamed book that was published in 2005 and became a perennial.
Blue ocean strategies a summary blue ocean strategy is a business strategy book first published in 2005 and. In order to understand these characteristics, knowledge of blue ocean strategy canvas is. It is all about devising and acquiring the uncontested market forum by spawning a new demand. Value innovation strategy competes in an uncontested market space. One of my favorite business books is one called blue ocean strategy. The idea, the thoughts, the progression of the book is simply amazingi profoundly prescribe this book to all the folks who need to have any kind of effect in their vocations. Rather than concentrating on beating the competitors, the company must actually prioritize on making the competition irrelevant. When you learn about the salient features of kanri strategy execution process, you will be able to appreciate this. Before we dive into blue ocean strategy examples, lets get clear on what a blue ocean is. The strategy is specifically a marketing theory and thus, a marketing strategy.
Blue ocean strategy, expanded edition book depository. Blending developments into one advancement which is blue ocean is a wow factor of this book. The premise of the book is that companies can succeed by creating. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. This blog article is a overview of some of the key points of the book by w. Companies should instead look for new market space and ways to reinvent the industry. Blue ocean strategy is the most successful book on business masterplanning the economist. This framework addresses not only the analytic aspects behind the creation of blue ocean strategy but also the allimportant human aspects of how to bring an organization and its people on this journey with a willingness to execute these ideas in. Based on an eponymously titled book, this strategy argues that cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool.
There are many pros and cons of this strategy the main and considerable advantage of this strategy is the first mover benefit in terms of market penetration where the companies. It is getting a business to this crucial state that the book focuses on. Blue ocean strategy is a bad book, but it is not your usual bad book. The authors ask readers what is the best unit of analysis of profitable growth. Highlighting 6 principles unique to blue ocean strategy and introducing a framework from which decisionmakers in any industry can work from, kim and mauborgne reveal that innovation can be achieved through analytical models as opposed to strokes of genius or luck. Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group. 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. How to create uncontested market space and make the competition irrelevant is the 2015 update to the classic business strategy text of the same name originally published in 2005. Characteristics of a good blue ocean strategy canopus. Blue ocean strategy is a business strategy book, first published on february 3, 2005 by the harvard business school press. Based on an eponymously titled book, this strategy argues that cutthroat.
The cornerstone of the blue ocean strategy is value innovation. Chan kim and renee mauborgne 2006 blue ocean strategy has been described as a must read for all business students. This can be done by creating more value for buyers enabling the company to open up a whole new uncontested market space, the blue ocean. Blue ocean strategy proposes that businesses can have more success by creating a blue ocean, rather than trying to compete in the red ocean the traditional market space that is filled. It is being published in a recordbreaking 44 languages and is a w. The most detailed book summary of blue ocean strategy by w. 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.
Marketcreating innovations sometimes involve eliminating features, not adding or improving them. Main page contents featured content current events random article donate to wikipedia wikipedia store. Click the link above or the picture below to read more. In order to unlock a blue ocean, a companys strategic profile should clearly show a strong focus, stand apart from competition, and have a clearly understood tagline that communicates the strategy. Each industry underwent continuous upheaval, each time spurred by a blue ocean strategy that 1 reduced factors unimportant to buyers, 2 increased factors important to buyers, 3 expanded the market. Blue ocean strategies summary blue ocean strategies a. 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.
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. Leave the statistics aside and see the big picture 3. They are the authors of blue ocean strategy, which has sold over 3. 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. Top 7 salient features of kanri strategy execution process. Pdf blue ocean strategy download full pdf book download. A blue ocean exists when there is potential for higher profits, as there is now competition or irrelevant competition. Because blue ocean is an andand, not an eitheror, strategy. Blue ocean innovation for cosmetics chemists corner. Pros and cons of blue ocean strategy essay sample blue ocean strategy makes the competition irrelevant by creating a new market space where there is no competitions. 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.
Chan kim and renee mauborgne rank in the top 5 management gurus in the world in the thinkers50 list, a title they have held for ten straight years. Salient features of blue ocean are that it is a non competitive strategy, in a sense that it refuses to compete in traditional sense. Blue ocean strategy is a powerful framework for finding new business opportunities. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was. Here is a slide deck with a summary of the most important parts of the book. In blue ocean strategy, there are three simple characteristics or yard stick used to evaluate strategies focus, divergence and compelling tagline. 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.
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