Blue ocean strategy 1creating blue oceans 3 2 analytical tools and frameworks 23 part two. It provides guidelines to identify new competing factors and therefore be more creative during later phases of innovation and design a new buyer value curve. I wish i could say my own pursuit of enlightenment led me to chan kim and renee mauborgnes masterpiece on embracing and leveraging difference. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. Although it was developed with the intention to motivate the private sectors and industries to create new demands by venturing into areas of greater potential, this concept has been tailored and adopted into. Blue ocean strategy displays an orderly way to deal with making the challenge unessential and traces standards and instruments any organization can use to make and catch their blue seas. The on the blue ocean strategy essay 1969 words 8 pages. Chan kim and renee mauborgne 2006 blue ocean strategy has been described as a must read for all business students. The four actions framework aids in eliminating the tradeoff between differentiation and low cost within a. The strategy canvas provides a highly visual tool to help look at future options. Blue ocean strategy on jet blue case study by neil k. The six paths framework in formulating blue ocean strategy are 1 look across alternative industries, 2 look across strategic groups within industry, 3look across buyer groups, 4 look across complementary product and service offerings, 5look across the functionalemotional orientation of an industry and 5look across time to shape trends.
View the entire blue ocean leadership series here w. Blue ocean strategy available for download and read online in other formats. Bos four actions framework errc grid innovating now. The canvas can be split between a diagnostic framework and an action framework. Pdf blue ocean strategy as a tool for improving a companys. A fouraction framework for blueocean innovation the. Chan kim and renee mauborgne was first published in 2005. 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. This blog article is a overview of some of the key points of the book by w. Blue ocean strategy introduces analytical tools to minimize risk. The blue ocean strategy offers users a framework for creating uncontested market. Four actions framework of blue ocean applied to jet blue 1.
Aug 28, 2012 this article explains the blue ocean strategy, developed by w. When expressed through a value curve, an effective blue ocean strategy has three complementary qualities. The blue ocean strategy seems to be a perfect solution for present companies to become sustainable successful. The fouractions frameworkon blue ocean strategy to reduce, create, raise and eliminate industry practices to create a. Blue ocean strategy including examples and pdf download. Four actions framework of blue ocean applied to jet blue. The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present.
How to create uncontested market space and make the competition irrelevant pdf by w. These factors were identified by studied smes as the first step and. To break the tradeoff between differentiation and low cost in creating a new value curve, the framework poses four key questions, shown in the diagram, to challenge an industry. Chan kim and renee mauborgne assert that tomorrows leading companies will succeed, not by battling their rivals for market share in the bloody red ocean of a shrinking profit pool, but by creating blue oceans of untapped new market spaces ripe for growth.
In their 2017 new york times bestselling book, blue ocean shift, kim and mauborgne share how to put these. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. Four actions framework template blue ocean framework miro. Jul 16, 2015 the blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. 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 four actions framework and the eliminatereduceraisecreate grid are almost a straightforward stepbystep strategy which offers an answer to all four parts of the marketing mix. Blue ocean strategy is a book published in 2005 and written by w. To move forward with the model, and thus the companys new blue ocean strategy, the use of the strategic canvas can be one of the most crucial aspects of the planning of the strategy. Blue ocean strategy actionable tools and frameworks.
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. The strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. Session 4 building profitable business models for value innovation. 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 structure can be created or recreated by the steps taken by players in the market. Miro has multiple exporting options, like saving to pdf. Blue ocean strategy is a strategy that advice companies to go to a new market, which interest customers and avoid competition from the existing market. A crucial tool in this odyssey is the fouractions framework. All in all, blue ocean strategy is a book worth reading. This short article examines the many ways blue ocean strategy bos can be used to create a better educational system. The premise of the book is that companies can succeed by creating. The blue ocean strategy recommends that a successful business should be able to develop a new demand in an uncontested markets rather than compete directly with other competitors in the industry. Remember what the product that company delivers is. Blue ocean strategy workshop at disted hospitality campus. The four actions framework and errc grid tweet after you define the three tiers of non customers, the idea is that you poll these noncustomers and find out what it would take to purchase your product or service.
An introduction to blue ocean strategy mba knowledge base. List the factors the customer cares about, and current dimensions of competition. What is blue ocean strategy about blue ocean strategy. Sep 26, 2016 the strategy canvas provides a highly visual tool to help look at future options. While the book is aimed primarily at large, traditional businesses, our book club. Value innovation strategy competes in an uncontested market space. Reviewing the blue ocean strategy university of twente student. Mar 15, 2014 four actions framework of blue ocean applied to jet blue 1. It captures the current state of play in the known market space. The blue ocean strategy as a method for developing sustainable profitable frameworks implies the fundamental idea of developing new innovational markets with a majority of new customers. Together, they wrote a bestselling book blue ocean strategy.
Blue ocean strategy chapter 14 the four action framework chapter two. Everyday low prices and free delivery on eligible orders. The evolution of blue ocean strategy vivechan international journal. A good blue ocean strategy has items in each of the four grids. Which factors should be created that the industry has never offered. Blue ocean strategys four actions framework poses four central questions that let companies break the valuecost tradeoff and create a blue ocean. Chan kim and renee mauborgne in their bestselling book of the same name. Blue ocean strategy formulation the four principles of.
This allows you to understand where the competition is currently. This tool is the central diagnostic and action framework for building a compelling blue ocean strategy. Remember what the product that company delivers is all about. Four actions framework blue ocean strategy shortform blog.
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. It was built on the notion of creating new markets where competition is irrelevant and the opportunity to grow and be profitable is unlimited. Blue ocean strategy can be found on amazon blue ocean strategy. In this article you will learn how to make your competition irrelevant and have sales and profit. Your productservice must raise and create customer value gain and simultaneously reduce and eliminate features or services that are less valued, or not valued at all, the customer pain. 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.
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. This allows you to understand where the competition is currently investing, the factors the industry currently competes on in products, service, and delivery, and what. Chen, information systems theory and practices red ocean vs. To join the free indie business book club, click here. The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. 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. The blue ocean strategy framework has evolved from value. Blue ocean strategy and sustainability for strategic management. In an audiobook that challenges everything you thought you knew, w. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. Here is a catalogue of blue ocean strategy pedagogical materials, used in over 2,800 universities and in almost every country around the world.
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. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. Blue ocean strategy and sustainability for strategic. You may or may not agree with the central philosophy, but you will be inspired. 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. This article explains the blue ocean strategy, developed by w. In their 2017 new york times bestselling book, blue ocean shift, kim and mauborgne share how to put these practical marketcreating tools into practice to move from red to. First and foremost on their list is a tool used to break out of competition and make competition irrelevant called the strategy canvas. The four pillars of blue ocean leadership insead knowledge. Download a pdf version of the formulation teaching module here. Using key blue ocean tools for strategy rethinking of a sme.
Essay about blue ocean strategy 825 words bartleby. Download a pdf of this article and check back next tuesday for how to see your leadership reality. 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. Blue ocean strategy is a landmark idea founded by w. Blue ocean strategies summary blue ocean strategies a.
Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was. Blue ocean strategy is a strategy that advice companies to go to a new market, which interest. 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. Use our free blue ocean 4 actions framework template to create, collaborate on with your. Formulating blue ocean strategy 3reconstruct market boundaries 47 4focus on the big picture, not the numbers 81 5reach beyond existing demand 101 6 get the strategic sequence right 117 fmkim. Kim and mauborgne four action framework tool of blue ocean strategy implemented by indian. Keywords blue oceans, value innovation, four action framework, strategy. They are the authors of blue ocean strategy, which is recognized as one of the most iconic and impactful strategy books ever written. Blue ocean strategies a summary blue ocean strategy is a business strategy book first published in 2005 and. Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to. 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. Achieved via the delivery of features that have a highest marginal benefit to customer needs. By creating this plot, you can find imbalances in your strategy, such as only raising and creating which leads to overengineering and trying to be the best or only eliminating and reducing which leads to mere price competition.
After reading you will understand the basics of this powerful strategy tool. Jul 28, 2018 the strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. The strategy canvas is both a diagnostic and an action framework for building a. Chen, information systems theory and practices blue ocean strategy. The concept of blue ocean is based on the idea that the business universe is made up. Chan kim and renee mauborgne in the indie business book club. Chan kim and renee mauborgne is used to reconstruct buyer value elements in crafting a new value curve or strategic profile. May 30, 2017 to join the free indie business book club, click here. The blue ocean strategy four actions framework also called eliminate reduce raise create grid errc grid is a complementary tool to the strategy canvas. Professor of mis school of business administration gonzaga university spokane, wa 99258 usa. The diagnostic framework is somewhat of a situational analysis. 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 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. In a blue ocean you change the playing field of strategy. Blue ocean strategy is a consistent pattern of strategic thinking behind the. To break from competition, a organization has to reconstruct the market boundary which is the first and foremost principle in creating blue ocean strategy. Blue ocean strategy is a bad book, but it is not your usual bad book. A third tool, the eliminatereduceraisecreate grid, pushes firms to act on all four questions posed by the four actions framework and to create a new value curve. Reviewing the blue ocean strategy universiteit twente. View notes blue ocean strategies summary from mgmt 430 at university of washington. How to create uncontested market space and make the competition irrelevant unabridged by kim, w chan, mauborgne, renee isbn.
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