The risks of following a blue ocean strategy the adaptive. Competing in overcrowded industries is no way to sustain blue. One of the most successful efforts to do so is the book blue ocean strategy, by w. Based on a study of 150 strategic moves spanning more.
We believe that an understanding of blue ocean strategy will help todays companies as they struggle to thrive in an. Blue ocean strategy, the global phenomenon that has sold 3. 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. It calls for profiles for leaders that are tailored to the very different. This blog article is a overview of some of the key points of the book by w. 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. 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. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. The concept of blue ocean strategy first took the business world by storm in 2005 when authors w. Blue ocean strategy notes matthew ellis business 109. How to create uncontested market space and make the competition irrelevant by w. 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. Competing in overcrowded industries is no way to sustain.
Hbr s 10 must reads on strategy download ebook pdf, epub. A key aspect of the blue ocean strategy is the concept of value innovation which as originally presented by the two authors in the 1997 article value innovation the strategic logic of high growth hbr 75. Chan kim and renee mauborgne, identify mental models that undermine marketcreating strategies. The authors discuss the benefits for business owners to leave the red ocean. Essay about blue ocean strategy 825 words bartleby.
Achieved via the delivery of features that have a highest marginal benefit to customer needs. How to create uncontested market space and make the competition irrelevant, a book by professors w. How to create uncontested market space and make the competition irrelevant. Chan kim is a professor of strategy and management at insead and codirector of. Click download or read online button to get hbr s 10 must reads on strategy book now. It should be noted that most new business launches today are launches in the red ocean domain. Value innovation strategy competes in an uncontested market space. When expressed through a value curve, an effective blue ocean strategy has three complementary qualities.
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. 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. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. In the ten years since the first edition of blue ocean strategy was published, professors kim and mauborgne have had myriad.
Nov 04, 2018 blue ocean strategy, create new markets and leave the competition behind renee mauborgne wobi duration. Red ocean is older and known including things such as competition, rules, and market dynamics. Most leadership efforts focus on cognitive and behavioral skills, such as empathy, selfawareness, and selfregulation. And for those of you reading in judgement yes you lets keep in mind i went to a state school and i hadnt heard of the book much less the strategy and yes i know i. Chan kim and renee mauborgne competing in overcrowded industries is no way to sustain high performance. To do so, the commercial offers of selected airlines were compared to validate any attempts to apply the blue ocean strategy concept. The premise of the book is that companies can succeed by creating. Aug 14, 2017 americanborn economist and a business theorist renee mauborgne currently works as a professor for strategy and management theories mis. Blue ocean strategy focuses on the ability to create new market space where there is no competition and where the demand for the services becomes uncontested. 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. The four pillars of blue ocean leadership insead knowledge.
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. Understanding this dynamic is what led target to revamp its product strategy and move into a less crowded market. What is blue ocean strategy about blue ocean strategy. Kim has an executive role at the insead blue ocean strategy institute as a codirector, and she is a distinguished fellow at insead, where she teaches the different blue ocean strategies and management techniques as we. Importance of the blue ocean strategy to a business bizfluent. 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. Companies pursue blue ocean strategies to make competition irrelevant. Some strategic planning models are based on theories that dont quite pan out during gotomarket executions. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Blue ocean strategy, the global phenomenon that has sold over 4 million copies and is recognized as one of the most iconic and impactful strategy books ever written, argues that cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. In the years that followed, michael porters explication of the five forces that determine the longrun profitability of any industry has shaped a generation of academic research and business practice. Blue ocean strategy how to create uncontested market space. Hbrs 10 must reads on strategy including featured article.
List the factors the customer cares about, and current dimensions of competition. The linchpin of any blue ocean strategy is strong product differentiation. Blue ocean strategy how to create uncontested market. In 1979, a young associate professor at harvard business school published his first article for hbr, how competitive forces shape strategy. Porter, the five competitive forces that shape strategy, building your companys vision, reinventing your business model, blue ocean strategy, the secrets to successful strategy execution, using the balanced scorecard as a strategic management system, transforming corneroffice strategy into frontline action. The idea in brief the core idea the idea in practice putting the idea to work 1 article summary 2 choosing strategies for change a list of related materials, with. This concept is the simultaneous pursuit of both differentiation and low cost, which in turns results in value for all. Jul, 2018 for struggling businesses, mauborgne recommended the strategy canvas, which is featured in her and kims newest book, blue ocean shift. About for books hbrs 10 must reads on strategy including. The rapid pace of innovation and change in recent years has led scholars and executives to search for an approach to strategy that is more dynamic than harvard professor michael porters classic five forces. Chan kim is a professor of strategy and management at insead and codirector of the insead blue ocean. Empirical validation of blue ocean strategy sustainability in. It is based on the view that market boundaries and industry structure are not a given and can be.
This article investigates the applicability of blue ocean strategy in regard to lowcost airlines in the civil airline industry. Blue ocean strategy is a book published in 2005 and written by w. Sep 24, 2017 in 2005, blue ocean strategy, expanded edition. This blog article takes a look at what kind of roi some companies have achieved by implementing a blue ocean strategy by w. Pdf harvard business school press blue ocean strategy. 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 on the blue ocean strategy essay 1969 words 8 pages. The real opportunity is to create blue oceans of uncontested market space. In the ten years since the first edition of blue ocean strategy was published, professors kim and mauborgne have had myriad conversations with managers and. Blue ocean leadership is designed to be applied across the three distinct management levels. It requires the right research, patience and focus. The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents.
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. 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. Jul 16, 2015 a key aspect of the blue ocean strategy is the concept of value innovation which as originally presented by the two authors in the 1997 article value innovation the strategic logic of high growth hbr 75. Blue ocean strategy introduces analytical tools to minimize risk.
Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. Profits and growth as an industry grows can diminish in a. Blue ocean strategy including examples and pdf download. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. B est of hbr choosing strategies for change by john p. 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. The idea in brief the core idea the idea in practice putting the idea to work 1 article summary 2 blue ocean strategy a list of related materials, with annotations to guide further exploration of the articles ideas and. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Chan kim and renee mauborgne broke ground by introducing blue ocean strategy, a new model for discovering uncontested markets that are ripe for growth. It is about creating and capturing uncontested market space, thereby making the competition irrelevant. Chan kim and renee mauborgne, professors at insead.