Exploring new and uncontested markets to grow your business and brands. Blue ocean strategy argues that tomorrows leading companies will succeed not by battling competitors, but by creating blue oceans of uncontested market space, where competition is rendered irrelevant of companies that made competition irrelevant in their industries to elicit the strategic logic behind blue ocean strategy. 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. Our team in the blue ocean strategy simulation was anuket. Blue ocean global wealth intends the contents of this article will be viewed for informational and educational purposes only. In this article you will learn how to make your competition irrelevant and have sales and profit.
This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. In the latest contribution to, cfp board offers a list of 12 yearend financial moves and four changes americans should be aware of stemming from changes to the tax code under the trump administration. The authors allude to the fact that most companies borrow their strategic thinking from. 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. It is being published in a recordbreaking 44 languages and is a bestseller across five continents. Chan kim and renee mauborgne and outlined in their breakthrough book, blue ocean strategy. Blue ocean strategy is a concept that has been pioneered by insead professors, w. Blue ocean strategy including examples and pdf download. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. In pursuit of public sector efficiency and value innovation. Once a company creates a blue ocean and its powerful performance consequences are.
Blue ocean idea index boi other companies companies should build their blue ocean strategy in the sequence of utility, price, cost, and adoption, these criteria form an integral whole to ensure commercial success. 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. Blue ocean strategy is a theory, method and toolkit developed by w. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was. This blog article takes a look at what kind of roi some companies have achieved by implementing a blue ocean strategy by w. Apr, 2016 this strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. He is known as coauthor of the 2005 book blue ocean strategy. Blue ocean strategy is a strategy that advice companies to go to a new market, which interest. The ohim case in the european union and the internal revenue system in chile. The sustainability and renewal of blue ocean strategy creating blue oceans is not a static achievement but a dynamic process. How to create uncontested market space and make the competition irrelevant, 10. The malaysian government applied the blue ocean strategy in the planning process to. Jul 27, 2015 blue ocean strategy argues that tomorrows leading companies will succeed not by battling competitors, but by creating blue oceans of uncontested market space, where competition is rendered irrelevant of companies that made competition irrelevant in their industries to elicit the strategic logic behind blue ocean strategy.
Pdf recent years have seen the emergence of a number of project based companies thus. The four pillars of blue ocean leadership insead knowledge. On blue ocean strategy by kim and mauborgne the business model canvas is a perfect extension of the analytical tools presented by kim and mauborgne. Sep 24, 2017 blue ocean strategy requires a different mindset. It was built on the notion of creating new markets where competition is irrelevant and the opportunity to grow and be profitable is unlimited. Chan kim born 1952 is a koreanborn business theorist, professors of strategy and management at insead, and codirector of the insead blue ocean strategy institute in fontainebleau, france.
Stock screener mf screener tax guide candlestick screener coronavirus updates newspapers are safe. There is ample opportunity for growth that is both profitable and rapid. 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 aims to be a howto manual for creating uncontested market spaces where your competition becomes irrelevantand it most definitely delivers. The blue ocean strategy is based on the concept that industry structure and market boundaries can. The concept of blue ocean is based on the idea that the business universe is made up. The country is using blue ocean strategy to become a highincome, advanced nation by 2020, according to an insead report. 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 is a marketing theory and the title of a book published in 2004 that was written by w. How to create uncontested market space and the make. 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. Ohimai friday eboreime and others published blue ocean strategy. Sep 23, 2014 download a pdf of this article and check back next tuesday for how to see your leadership reality.
They are the authors of blue ocean strategy, which has sold over 3. Blue ocean strategy case study service nsw 3 1 introduction blue ocean strategy1 has been used extensively to transform the public sector around the world at a local, state and national level. The information in this article is not intended as tax, legal, or investment advice. Blue ocean strategy is a landmark idea founded by w. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. They are completely or relatively satisfied with provided service. Blue ocean strategys partners and associates are multinationals, of who have many years of top management, crosscultural experience gained from multinational corporations worldwide. In this article, we will look at 1 what is a blue ocean strategy. A blue ocean strategy leading to business model generation when creating a value for the mature consumer, we need a strategy.
We owned a 14% market share with red box and 15% market share with blue box. First published in 2005 then republished in 2015 with new information, it has become the core approach we use with our clients, many of whom are literally on the brink before getting unstuck and moving ahead in new directions. This group includes those who are consistently using the existing products and services. Jun 21, 2007 blue ocean idea index boi other companies companies should build their blue ocean strategy in the sequence of utility, price, cost, and adoption, these criteria form an integral whole to ensure commercial success. Blue ocean strategy is a strategy that advice companies. What is blue ocean strategy about blue ocean strategy. May 12, 2015 the country is using blue ocean strategy to become a highincome, advanced nation by 2020, according to an insead report.
Pdf blue ocean strategy for creating value of the organization. This strategy, which is based on extensive research of hundreds of companies spanning across decades and including several industries, proclaims that instead of battling competitors, companies can create new markets for themselves. Download a pdf of this article and check back next tuesday for how to see your leadership reality. November 2015 andreas karaoulanis this paper aims to give the main guidelines for strategic implementation of blue oceans strategy and how this kind of strategy is. Whilst bos is a useful thinking technique, it also focuses on markets where there are no customers. The aim of blue ocean strategy bos is not to outperform the competition in the existing industry, but to create new market space or a blue ocean, thereby making the competition irrelevant. Blue ocean strategy and its implications for businesses. What is the blue ocean strategy the term blue ocean was coined by two professors w. Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. This study aims to understand how blue ocean strategy can be.
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. Chan kim and renee mauborgne, professors at insead. Chan kim is one of the most influential business books ive ever read. Chan kim and renee mauborgne in their book titled blue ocean strategy. Pdf for creating new demands and open up a new market space the pursuit of differentiation. But, lets first understand what is blue ocean and how it is different from red ocean strategy. Blue ocean strategy case study service nsw 4 2 background to the establishment of service nsw australia has a threetiered system of government the federal or commonwealth government of australian, state governments and local government. Once a company creates a blue ocean and its powerful performance consequences are known, sooner or later imitators appear on the horizon. Explain these from the perspective of company, competition, costs, and markets. Essay about blue ocean strategy 825 words bartleby. The innovation in products and services or the way of introducing these products leads to the creation of value for such a market. How to create uncontested market space and make the competition. Today, we tell you something about an interesting chaper in osterwalders book about the blue ocean strategy.
Blue ocean entrepreneurship competition blue ocean strategy. Red ocean in blue oceans, demand is created rather than fought over. The blue ocean entrepreneurship competition blue ocean strategy. Americans who fail to act at the end of this year may lose thousands of dollars in possible deductions. Now updated with fresh content from the authors, blue ocean strategy. The authors allude to the fact that most companies borrow their strategic thinking from military models see paradox of strategy. November 2015 andreas karaoulanis this paper aims to give the main guidelines for strategic implementation of blue oceans strategy and how this kind of strategy is a part of turnaround management. The blue ocean is made when a company provides simultaneous values for itself and its customers. The blue ocean idea index provides a simple but robust test of this system view. Competitiveness of small and mediumsized industries smi becomes very important. Blue ocean strategy, expanded edition harvard business publishing. The competition on the market is getting stronger and more difficult to overcome.
Chan kim, of blue ocean strategy, expanded edition 2015. At the end of all rounds of the simulation, our company health was as follows. We need to rethink how we search for innovative business ideas. Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to. According to deloittes landmark study the shift index, the aggregate return on. Featured case series blue ocean strategy the case centre. Intuit quicken blue ocean shift blue ocean strategy. It may not be used for the purpose of avoiding any federal tax penalties. Menon business economics was commissioned by maritimt forum to prepare the report maritime value creation book 2015, which contains an update of value creation figures and other key figures for the maritime industry. Blue ocean strategy blue ocean strategy introduction. Mar 16, 2015 today, we tell you something about an interesting chaper in osterwalders book about the blue ocean strategy. According to this report, the maritime industry had a value creation of nok 175 billion in 202. The blue ocean strategy from the art of war and albert einstein to cirque du soleil how can you boost profits by creating. This blue ocean entrepreneurship competition was founded in maryland in 2014 by a young budding high school entrepreneur directly inspired by chan kim and renee mauborgnes blue ocean strategy and the blue ocean way of thinking.
Expanded editions of blue ocean strategy were published in 2015 and 2017, respectively. 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. Malaysia, a federal state, has a long history of planning. Making the internal process company ipf bos in order to optimize the implementation of blue ocean strategy, making the value of the company and the products to be better in the consumers. But its not always clear how to create a blue ocean strategy for yourself.
Blue ocean strategy can be applied across sectors or businesses. Blue ocean strategy, competitive advantage of smis, product performance i. The idea in brief the best way to drive profitable growth. Testing the validity of blue ocean strategy versus competitive. Blue ocean strategy and sustainability for strategic management. Chan kim and renee mauborgne derive a novel business strategy and tools based on data from over 30 industries spanning more than 100 years. Furthermore the blue ocean strategy was awarded with.
Individual chapters from the best selling blue ocean strategy book are also available from the case centre. Blue ocean strategy is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. Red ocean strategy blue ocean strategy the statistical population and community of customers in the blue ocean strategy include kim and mauborgne, 2005. How to create uncontested market space and make the competition irrelevant, a book by professors w.
Blue ocean strategic moves blue ocean strategy is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. Riskreturn through financial ratios as determinants of stock price. How to create uncontested market space and make the competition irrelevant, a. Their experiences are diverse, industrial based with high ethical standards and integrity. 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.
Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. 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. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades. Making your competition irrelevant with the blue ocean. In 2009, malaysias prime minister najib razak hosted a national blue ocean strategy summit to unite private sector leaders, civil servants, and key stakeholders to address economic and social issues. Blue ocean strategy is a powerful framework for finding new business opportunities. When i talk to ceos and cmos about blue ocean strategy bos, most of them have an idea about the concept, but. Based on a study of 150 strategic moves spanning more than 100 years and 30 industries, it provides. They provided a powerful framework for questioning incumbent business models. Do you have a blue ocean sales and marketing strategy. Blue ocean strategy and sustainability for strategic. The competition on the market is getting stronger and more difficult to overcome, in many.
317 1094 331 1469 293 1544 860 926 1482 447 1213 757 1555 806 1041 768 1554 1294 949 623 661 1275 1082 801 1171 840 672 767 906 1144 764 385