Five steps to making a blue ocean shift blue ocean strategy. The 6 steps of the blue ocean strategy from a process. This strategy targets six principles that can be used in every organization so that they can arrive at a successful development and fulfilment of new markets. The six steps of blue ocean implementation each carry a risk. Follow these five systematic steps so that you maximize the chances of hitting the. Blue ocean shift is the essential follow up to blue ocean strategy, the. The six paths framework in formulating blue ocean strategy. There are two types of oceans in this world, according to authors w. The two professors, having found their own blue ocean, quickly ascended to the pinnacle of strategic consulting. Blue ocean strategy blue ocean strategy introduction blue ocean strategy is a marketing book by w. To help narrow down the choices, weve put together a list of 15 strategic management books to help you gain the muchneeded competitive edge in this highly competitive world. To be able to provide customers with value innovations both differentiation and low cost, a company needs to approach process innovation in a new way. In this article you will learn how to make your competition irrelevant and have sales and profit. 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.
Blue ocean leadership is designed to be applied across the three distinct management levels. The first part presents key concepts of blue ocean strategy, including value innovation the. How to create uncontested market space and the make competition irrelevant 2005. Summary of the first four chapters of the international bestseller blue ocean strategy.
The book mostly borrows from a range of over 140 strategic marketing moves within a period of over a century. Given all this success, the only truly surprising thing is that it took 12 years for kim and mauborgne to publish a followup. Blue ocean strategy can be found on amazon blue ocean strategy. Five steps to making a blue ocean shift blue ocean shift. 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 blue oceans. In the prior book the tools were described, but this book follow up with instructions on sequencing and use.
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. May 26, 2015 summary of the first four chapters of the international bestseller blue ocean strategy. Named a best book of 2017 by amazon winner of the best. 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. For that there is nothing better than something called the blue ocean strategy. Profit model of blue ocean strategy the profit model of blue ocean strategy shows how value innovation typically maximizes profit by using the three levers of strategic price, target cost, and pricing innovation. Blue ocean shift is a framework that combines the insights of human psychology with practical marketcreating tools and realworld guidance on guiding organisations and their teams to move beyond competing market creation, inspire teams confidence, and seize new growth. The research 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. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. 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.
In the blue ocean strategy, you must offer your customers a value innovation i. The strategy canvas provides a highly visual tool to help look at future options. Blue ocean strategy is the most successful book on business masterplanning. Find out how leaders in diverse industries and organizations created new markets by applying the process and tools outlined in the book. How to create uncontested market space and make the competition irrelevant, a book by professors w. I recently ordered the book and could not put it down. 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. To help you do this, we show you how to use the six paths framework. The authors use the metaphor of the blue ocean as a direct contrast to red oceans. The seminal book blue ocean strategy has sold over 3. Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group. Drawing on more than a decade of new work, kim and mauborgne show you how to move beyond competing. A company will have more success, fewer risks, and increased profits in a blue ocean market. Chan kim and renee mauborgne, the writers of the 2005 book blue ocean strategy.
A 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. Aug 08, 2019 the first part presents key concepts of blue ocean strategy, including value innovation the simultaneous pursuit of differentiation and low cost and key analytical tools and frameworks. To be able to do that, you have to look at your process innovation from a new perspective. 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. The blue ocean strategy explains how to guide your business across seas with less competition and greater profitability. Sep 10, 2012 in the blue ocean strategy, you must offer your customers a value innovation i. Here are the best strategy books for entrepreneurs and managers. Jun, 2012 businesses that pursue this course should offer their customers a blue ocean value innovation, that is, tangible product advancements accompanied by demonstrable savings. The first part presents key concepts of blue ocean strategy, including value. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. The sequel to blue ocean strategy, blue ocean shift outlines a methodology to identify blue ocean opportunities. Chan kim and renee mauborgne, develops and explains how to beat the competition by reaching beyond it into new unexplored markets. An introduction to blue ocean strategy mba knowledge base. His book blue ocean strategy, coauthored with renee mauborgne, has sold 3.
To join the free indie business book club, click here. The book the origin of the terms red and blue oceans comes from blue ocean strategy how to create uncontested market space and make the competition irrelevant. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of strategy and international management at insead. The first part presents key concepts of blue ocean strategy, including value innovation the simultaneous pursuit of differentiation and low cost and key analytical tools and frameworks. Instead of looking within the accepted boundaries that define how we compete, managers can look systematically across. This is where the concept of value innovation is placed as the cornerstone of this strategy, and the six principles of blue ocean strategy are introduced, the latter.
This blog article is a overview of some of the key points of the book by w. Blue ocean strategy is about value innovation in general, in which no emphasis is put on reducing the speed to market. 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 formulation the four principles of. This book will empower you to succeed as you embark on your own blue ocean journey. Blue ocean shift takes the groundbreaking principles of their original work and offers a smart, systematic plan to help any organization move from competing in existing markets to creating new markets altogether.
Businesses that pursue this course should offer their customers a blue ocean value innovation, that is, tangible product advancements accompanied by demonstrable savings. Jul 16, 2015 one way to approach the blue ocean strategy is to consider it as a process innovation. One way to approach the blue ocean strategy is to consider it as a process innovation. While most of the expanded edition builds on the original work, the final chapters dispel misconceptions and explore the missteps and mistakes of early blue ocean strategy disciples. The 6 steps of the blue ocean strategy from a process perspective. This book brings the best of those articles together all in one place. Companies should instead look for new market space and ways to reinvent the industry.
The book offers a fivestep process for systematically reproducing such strategic triumphs, and shows how a blue ocean initiative can be. From this process perspective, there are six important steps to using the blue ocean strategy. Outline the industry and get a good feel for its key attributes and the intensity of the competition. Chan kim and renee mauborgne as explored in their new book their new book blue ocean shift 2017. Beyond competing proven steps to inspire confidence and seize new growth. Blue ocean practitioners need to be prepared to wear life jackets. The database and research have continued to expand. Red oceans are described as all the industries in existence today.
Be sure to check out our book for detailed guidance on how to implement each step and use the tools, including what works and what doesnt, so you can achieve success. Blue ocean strategy is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. It calls for profiles for leaders that are tailored to the very different. The stories were compelling both the winners and losers. Blue ocean strategy is a groundbreaking book on opening up uncontested markets. Blue ocean strategy including examples and pdf download.
Oct 31, 2017 blue ocean shift is a framework that combines the insights of human psychology with practical marketcreating tools and realworld guidance on guiding organisations and their teams to move beyond competing market creation, inspire teams confidence, and seize new growth. 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. 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. The goal of a blue ocean strategy is for organizations to find and develop blue oceans uncontested, growing markets and avoid red oceans overdeveloped, saturated markets. Chan kim and renae mauborgnea in their book blue ocean strategy.
Insead presented them with an institute and built blue ocean strategy into its mba curriculum. While the book is aimed primarily at large, traditional businesses, our book club members managed to. The top 15 strategic management books startup grind. In red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. Blue ocean shift is the essential follow up to blue ocean strategy, the classic and 3. All in all, blue ocean strategy is a book worth reading. Lets revisit the six steps of the blue ocean strategy from a process pointofview. What is blue ocean strategy about blue ocean strategy. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. If you ever read michael porter on competition or henry mintzberg the strategy process, the this book may be superfluous. A landmark work that upends traditional thinking about strategy, this book charts a bold new path to winning the future. Creating new market space requires a different pattern of strategic thinking. Essay on blue ocean strategy a marketing book 1053. Blue ocean strategy is a book published in 2005 and written by w.
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. It is about creating and capturing uncontested market space, thereby making the competition irrelevant. The strategic price the target profit the target cost streamlining and cost innovations partnering pricing innovation 29. The premise of the book is that companies can succeed by creating. This short summary is a snapshot of the five steps to making a blue ocean shift. Winner of the best leadership and strategy book of 2017 by 800ceoread. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Named a best book of 2017 by amazon winner of the best leadership and strategy book of 2017 by 800ceoread kim and mauborgne have followed one blockbuster book with another. Apr 03, 20 4 steps to creating a blue ocean strategy april 3, 20 step 1. Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. Oct 25, 2017 the two professors, having found their own blue ocean, quickly ascended to the pinnacle of strategic consulting. Recognized as one of the most iconic and impactful strategy books ever written, blue ocean strategy argues that cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool.
Chan kim and renee mauborgne, professors at insead. Let henry mintzberg, bruce ahlstrand, and joseph lampel guide you on an enlightening and entertaining. Chan kim and renee mauborgne in the indie business book club. Value innovation and how to successfully incubate blue. This is a book summary i have written originally as part of the assignment for my harvard innovation and entrepreneurship class. Jun 08, 2007 profit model of blue ocean strategy the profit model of blue ocean strategy shows how value innovation typically maximizes profit by using the three levers of strategic price, target cost, and pricing innovation. Made by group d of the minor global trendwatching 2015. Sep 26, 2016 the strategy canvas provides a highly visual tool to help look at future options. This masterclass examines the blue ocean value innovation process, how it works in practice and how it has evolved since the publication of blue ocean strategy 2005 by w.
Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. The first step to creating blue ocean strategy is to find new ideas and redefine markets as theyre commonly understood. You may or may not agree with the central philosophy, but you will be inspired. The book offers 6 paths to find new blue ocean opportunities outside your immediate industry. Their book teaches readers how to create uncontested markets for. May 27, 2014 for that there is nothing better than something called the blue ocean strategy. Blue ocean strategy ist eine methode zur entwicklung dauerhaft profitabler geschaftsmodelle aus dem bereich des strategischen managements. While most of the expanded edition builds on the original work, the final chapters dispel misconceptions and explore the mis steps and mistakes of early blue ocean strategy disciples. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Managing uncertainty, opportunity, and enterprise by j.
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