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. Based on 15 years of research, the authors used 150 successful strategic moves spanning 120 years of business history and across 30 industries to bring the blue. Value innovation value innovation is created in the region where a companys actions favorably affect both its cost structure and its value proposition to. Oct 05, 2007 blue ocean strategy executive summary 1.
How to create uncontested market space and make the. Blue ocean strategy for small businesses fundbox blog. 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. Blue ocean strategy including examples and pdf download. Blue ocean strategy blue ocean strategy introduction blue ocean strategy is a marketing book by w. While the book is aimed primarily at large, traditional businesses, our book club members managed to scale some of the advice to fit our needs. Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group. Its authors, insead professors w chan kim and renee mauborgne, continued their steady progress up the thinkers50 list, finishing second to christensen this year.
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. The on the blue ocean strategy essay 1969 words 8 pages. The book succeeds in showing how businesses, can outdo their competitors. 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. 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 make the competition irrelevant book. An introduction to blue ocean strategy mba knowledge base. Red ocean strategy blue ocean strategy compete in exiting market space create uncontested market. It was clear from the outset that the authors were on to something special. Chan kim and renee mauborgne 2006 blue ocean strategy has been described as a must read for all business students. Blue ocean strategy makes companies to come out of ocean of bloody competition by creating market space which is uncontested and that makes the completion irrelevant. In studying more than 150 blue ocean creations in over 30 industries, the authors observed that the traditional units of strategic analysiscompany and industryare of limited use in. In addition, there is a profound amount of information that is definitely able to enlighten any reader. Innovation, new market space and creating demand are central characteristics.
How to create uncontested market space and make competition irrelevant, is a market space that is undeveloped, and untapped by competitors. Value innovation value innovation is created in the region where a companys actions favorably affect both its cost structure and its value proposition to buyers. Blue ocean strategy is a business strategy book, first published on february 3, 2005 by the harvard business school press. Based on 15 years of research, the authors used 150 successful strategic moves spanning 120 years of business history and across 30 industries to. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Grey4 ocean, grey ocean strategy book now that older people stay more youthful in spirit, the trick is in devising a marketing strategy for people who do not want to be seen as being older but who will, nevertheless, develop the need for products that enable them to. 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. Made by group d of the minor global trendwatching 2015. It became an international bestselling business book and was recently updated in 2015. 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.
Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. Essay about blue ocean strategy 825 words bartleby. 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. How to create uncontested market space and make the competition irrelevant by w. How to create uncontested market space and the make competition irrelevant 2005. 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. They research for around over 20 years and sum up a theory of blue ocean. Some strategic planning models are based on theories that dont quite pan out during gotomarket executions. 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. Blue ocean streagety chapter 1 chapter1summary this is. His book blue ocean strategy, coauthored with renee mauborgne, has sold 3. Yet, as this influential and immensely popular book shows, these hallmarks of competitive strategy are not the way to create profitable growth in the future. This article is adapted from their forthcoming book blue ocean strat egy.
This international bestselling book sold more than a million copies in its first year of publication, and has. 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. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. They represent businesses that may not be around today, or werent around until they came on to the scene. The blue ocean strategy was published in 2005 and authored by w. Welcome to blue ocean strategy were thrilled to have you on board. 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. Set sail towards your blue ocean jk beteiligung gmbh. Blue ocean strategy proposes that businesses can have more success by creating a blue ocean, rather than trying to compete in the red ocean. It is being published in a recordbreaking 44 languages and is a w. Blue ocean strategy, page 47 based on their research, kim and mauborgne found six approaches to reconstructing market boundaries which, collectively, are known as the six paths framework. Tools and frameworks for creating and capturing blue oceans it is constructed to create a new value curve and when you apply the four actions framework to the strategy canvas of your industry, you get a.
Chan kim and renee mauborgne in their book blue ocean strategy. Essay on blue ocean strategy a marketing book 1053 words. Blue ocean strategy and blue ocean shift, created by worldrenowned professors chan kim and renee mauborgne, is a new way of thinking, a movement away from a. Their iconic and impactful books, blue ocean strategy and blue ocean shift, provide a systematic approach to making the competition irrelevant and tools any organisation can use to shift from. Theyve progressed every year since to 15th in 2005. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. 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. The insead blue ocean strategy open enrolment programme is based on the groundbreaking work developed by insead professors chan kim and renee mauborgne. May 30, 2017 to join the free indie business book club, click here. Jul, 2018 for struggling businesses, mauborgne recommended the strategy canvas, which is featured in her and kims newest book, blue ocean shift. 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. Blue ocean strategy is a bad book, but it is not your usual bad book.
With this groundbreaking book, kim and mauborgneboth professors at. Find your space in the blue oceanand build your blue ocean strategy. The first principle of blue ocean strategy is to reconstruct market boundaries to break from the competition and create blue oceans. The seminal book blue ocean strategy has sold over 3. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w.
Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking away from the competition. Chapter 1 summary this is the first chapter of blue ocean strategy. Is it possible to apply blue ocean strategy for tourism. 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.
Sep 26, 2016 the blue ocean strategy was published in 2005 and authored by w. Furthermore the blue ocean strategy was awarded with the best business book of 2005. 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. Blue ocean strategy is about creativity and finding new markets that allow a company not to get involved inand bogged down byhyper competition, said w. Further the blue ocean strategy aims to create new best practice rule by breaking the existing value cost trade off, thereby creating uncontested market space, thus making the competition irrelevant. Pdf epub mobi ebooks are now available on this website works on pc, ipad.
Sep 24, 2017 now, 12 years later, the authors offer an exciting new book that synthesizes their experience in assisting with the implementation of blue ocean strategy. Jul 28, 2018 blue ocean strategy was coined by professors w. Highgrowth companies are becoming increasingly hard to seek. Chan kim and renee maugborgne, was published in 2005 based on studies of 150 strategic business moves that took place over the course of a century. 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. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of. Blue ocean strategy is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. Summary of the first four chapters of the international bestseller blue ocean strategy. Chan kim and renee mauborgne in their bestselling book of the same name. We believe that blue ocean strategy will send you on the right path towards creating your own uncontested space. Reviewing the blue ocean strategy universiteit twente. Now, 12 years later, the authors offer an exciting new book that synthesizes their experience in assisting with the implementation of blue ocean. Grey4 ocean, grey ocean strategy book now that older people stay more youthful in spirit, the trick is in devising a marketing strategy for people who do not want to be seen as being older but who will, nevertheless, develop the need for products that enable them to continue to be active, mobile, healthy and young at heart. Chan kim and renee mauborgne, published by harvard business school press, boston, massachusetts, 2005, isbn 97815996192.
This book will help the investor who is unsure about buying, holding or selling based on a companys future prospects. In this article you will learn how to make your competition irrelevant and have sales and profit. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. Companies should instead look for new market space and ways to reinvent the industry. Value innovation strategy competes in an uncontested market space. 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. Since, dividing up existing demand and benchmarking the competitors, blue ocean strategy is.
Chan kim, renee mauborgne this blue ocean strategy, expanded edition. Essay on blue ocean strategy a marketing book 1053. This blog article is a overview of some of the key points of the book by w. 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. Blue ocean strategy is a book published in 2005 and written by w. May 26, 2015 summary of the first four chapters of the international bestseller blue ocean strategy. 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. The book mostly borrows from a range of over 140 strategic marketing moves within a period of over a century.
How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. To join the free indie business book club, click here. 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. Everyday low prices and free delivery on eligible orders. Blue ocean strategy formulation the four principles of. The premise of the book is that companies can succeed by creating. Blue ocean strategy has helped numerous companies and organisations across the globe to create new market space and achieve pro. Blue ocean strategy chapter 14 the four action framework chapter two. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. Chan kim and renee mauborgne in the indie business book club.