Blue ocean strategy analysis essay sample samples analysis blue ocean strategy the maturity of an industry has brought a company swimming in a red ocean, which means price war strategy, according to a bestseller book titled blue ocean strategy that is written by w. Chan kim and renee mauborgne, professors at insead. According to cham kim and renee mauborgne 2004, the blue ocean strategy involves the description of how the organization should try and proceed to find some way to work in the marketplace that is not bloodied by the competition and also that is free of competitors. After reading the book, i can summarize the idea behind the blue ocean strategy in two main statements which are. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Chan kim and renee mauborgne, the writers of the 2005 book blue ocean strategy. I picked up this book on a recommendation, expecting it to be rather. In the international bestseller blue ocean strategy, w. In blue oceans, demand is created rather than fought over. The on the blue ocean strategy essay 1969 words 8 pages. Companies should instead look for new market space and ways to reinvent the industry.
Jan 27, 2014 sustainability and renewal of blue ocean strategy sustainability can be traced to the following imitation barriers. Chan kim and renee mauborgne 2006 blue ocean strategy has been described as a must read for all business students. 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. Please use this display as a guideline and modify as needed. According to the blue ocean strategy principles, companies should not only try to compete in existing markets red oceans, but. Inside business 360,united states if you are still wondering whether to pick up a copy of blue ocean strategy, we hope this article will convince you. 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.
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. We love to know how blue ocean strategy, blue ocean shift, and blue ocean leadership is applied around the world by other people and we monitor for blue ocean mentions so we will know if you do not abide by our rules. Blue ocean strategies summary blue ocean strategies a. Blue oceans, in contrast, denote all the industries not in existence today. This templates provides iconography and diagrams to work with the blue ocean strategy tools. Consider this your guide to creating uncontested market spaceand making the competition irrelevant. Ocean strategy but im glad they did because this simple recommendation. 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. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant.
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 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. This work offers a summary of the book blue ocean strategy. Blue ocean strategy workshop at disted hospitality campus this short article examines the many ways blue ocean strategy bos can be used to create a better educational system. What are some successful examples of blue ocean strategy. Blue ocean describes the opportunities of vast, untapped market spaces that can be developed by expanding market boundaries or. Albeit it is very complex and hard to read, it is well worth the effort. For that there is nothing better than something called the blue ocean strategy. All in all, blue ocean strategy is a book worth reading. 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. Create your citations, reference lists and bibliographies automatically using the apa, mla, chicago, or harvard referencing styles. 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. Furthermore the blue ocean strategy was awarded with.
The structure can be created or recreated by the steps taken by players in the market. 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. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. Essay about blue ocean strategy 825 words bartleby.
The book is basically divided into three main parts. An example of this is what ebay did with online auctioning. The second part explains the four steps of blue ocean strategy formulation. Blue ocean strategy including examples and pdf download. Chan kim and renee mauborgne in the indie business book club. 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. Based on a study of 150 strategic moves, spanning more than 100 years across 30 industries, the authors, chan kim and renee mauborgne show that lasting success comes not. It is being published in a recordbreaking 44 languages and is a w. The database and research have continued to expand. A company will have more success, fewer risks, and increased profits in a blue ocean market. What is blue ocean strategy about blue ocean strategy. This book contains plenty of examples of successful blue ocean strategies, and it teaches you how to discover and execute them.
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 bad book, but it is not your usual bad book. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. The seminal book blue ocean strategy has sold over 3.
Blue ocean strategy can be found on amazon blue ocean strategy. 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. Blue ocean strategy is a powerful framework for finding new business opportunities. Blue ocean shift is packed with realworld examples of organizations facing the same constraints we all face be they politics, bureaucracy, or limited resources that applied the very tools and process outlined in the book to shift from competi. Chan kim and renee mauborgne, are both prominent professors at insead in fontainebleau, france. Blue ocean strategies a summary blue ocean strategy is a business strategy book first published in 2005 and. But its not always clear how to create a blue ocean strategy for yourself. Their book teaches readers how to create uncontested markets for. Reviewing the blue ocean strategy universiteit twente. He is the coauthor, along with renee mauborgne, of the book blue. Blue ocean shift is the essential followup to blue ocean strategy, the classic and over 4 million copy global bestseller by worldrenowned professors chan kim and renee mauborgne drawing on more than a decade of new research, blue ocean shift is the definitive guide to help you move beyond competing, inspire your peoples confidence, and seize new growth. This blog article takes a look at what kind of roi some companies have achieved by implementing a blue.
Of the most iconic and impactful strategy books ever written. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. In this article you will learn how to make your competition irrelevant and have sales and profit. Drawing on more than a decade of new work, kim and mauborgne show you how to move beyond competing. Value innovation strategy competes in an uncontested market space.
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. First and foremost, the book does provide an excellent study of the patterns and trends of successful strategic moves. 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. The premise of the book is that companies can succeed by creating. Blue ocean strategy powerpoint template is a professional and modern presentation for the description or explanation of the blue ocean strategy theory. The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. Blue ocean strategy how to create uncontested market space and make the competition irrelevant facilitators. Strategy and thinking is not limited by preconceived barriers, and a shift happens from a focus on the supply side to a focus on the demand.
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. 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. 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. Harvard business school press, mla citation kim, w. 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. Blue ocean strategy is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. Blue ocean strategy is based on over decadelong study of more than.
Chan kim, the mastermind behind the blockbuster book, blue ocean strategy. Jul, 2018 for struggling businesses, mauborgne recommended the strategy canvas, which is featured in her and kims newest book, blue ocean shift. The blue ocean approach is based upon the concept of value innovation which was also introduced by the authors of the blue ocean strategy, kim and mauborgene. This wellwritten book seems like common sense however it is an eyeopener for less. Although blue oceans enable a firm to gain uncontested market space, it is only for a time that this is so. If you are a student of business mba, then this top strategy book by michael porter is a mustread. This article explains what the blue ocean strategy is and how it can become a game changer for businesses stuck in stagnating markets. Blue ocean strategy powerpoint template slidemodel. A description of blue ocean strategy and its importance. The blue ocean strategy is a book about finding your niche within a niche so you can stay competitive and grow. Apr 03, 2010 blue ocean strategy summary and examples 1. In few cases, companies can establish completely new industries. The key theme in this article is that when businesses are faced with a choice of battling competition in saturated markets or creating an entirely new market.
To learn more about the power of blue ocean strategy, visit blueoceanstrategy. This blog article is a overview of some of the key points of the book by w. The process sounds very much like how bos is used every day in the business world because not surprisingly, people in practically any industry ask similar questions. A product or service that might be considered a blue ocean move and why. May 30, 2017 to join the free indie business book club, click here. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of.
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. Each tool has a slide for the description and application within the strategy analysis. Apple observed the flood of illegal music file sharing that began in the late 1990s, enabled by file sharing programs such as napster, kazaa, and limewire. Blue ocean strategy is a book published in 2005 and written by w. The hard part is actually finding a reasonable strategy and executing it successfully.
With the launch of itunes, apple unlocked a blue ocean of new market space in digital music that it has now dominated for more than a decade. Blue ocean strategy and its implications for businesses. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Sep 26, 2016 the strategy canvas provides a highly visual tool to help look at future options.
Blue ocean strategy is a business strategy book, first published on february 3, 2005 by the harvard business school press. Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Value imitation does not make sense based on conventional strategic logic blue ocean strategy conflicts with the brand image natural monopoly. There are two types of oceans in this world, according to authors w. 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. How to create uncontested market space and make the competition irrelevant from the worlds largest community of rea. How to create uncontested market space and make the competition irrelevant. Written by the business worlds new gurus, blue ocean strategy continues to challenge. Rivalry will intensify, competition will commence and turn the ocean red. This article uses examples from the real world to discuss the specifics of the blue ocean strategy. An alternative red ocean move for the same product or service along with the pros and cons of that strategy. You may or may not agree with the central philosophy, but you will be inspired. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute.
Its authors, insead professors w chan kim and renee mauborgne, continued their steady progress up the thinkers50 list, finishing second to christensen this year. His book blue ocean strategy, coauthored with renee mauborgne, has sold 3. In short, the whole book could be summed up in the very first chapter where value innovation is explained because value innovation is not the cornerstone of blue ocean strategy it is blue ocean strategy. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by. View notes blue ocean strategies summary from mgmt 430 at university of washington. Sample article from credo reference database blue ocean strategy. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades.
How to create uncontested market space and make competition irrelevant. Based on a study of 150 strategic moves spanning more than 100 years. The authors suggest that there are many ways to create blue oceans. This book brings the best of those articles together all in one place. You cannot copy in full or in part any of our full text content and our original ed images without our prior consent. Blue ocean is a slang term that comes from the book the blue ocean strategy, by w. A landmark work that upends traditional thinking about strategy, this bestselling book charts a bold new path to winning the future. This blog article takes a look at what kind of roi some companies have achieved by implementing a blue ocean strategy by w. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. The strategy canvas provides a highly visual tool to help look at future options. I love newer ones like blue ocean strategy and all the freaknomics books.
Blue ocean strategy is the most successful book on business masterplanning. The first part covers some important concepts of blue ocean strategy such as value innovation, differentiation and low cost and key analytical tools and frameworks used in this strategy. To join the free indie business book club, click here. He is known as coauthor of the 2005 book blue ocean strategy.