This new market space is created by launching new offerings, with the aim being to make the competition irrelevant so that an organization can grow, uncontested, at least in the beginning. A blue ocean strategy is based on creating demand that is not currently in existence, rather than fighting over it with other companies. 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 strategy formulation the strategy canvas. 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.
Products are shipped from the companys bellingham, washington manufacturing facility to distributors and original equipment manufacturers worldwide. Blue sea systems innovative electrical systems built. To understand red ocean strategy let us begin by defining blue ocean strategy. Tru group inc blue ocean strategy belongs in the dead sea. 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. Sep 24, 2017 in 2005, blue ocean strategy, expanded edition. The strategy canvas provides a highly visual tool to help look at future options. To make your life easier, you can download these free templates that have been made especially for blue ocean strategy presentations.
Nov 04, 2018 blue ocean strategy, create new markets and leave the competition behind renee mauborgne wobi duration. How to create uncontested market space and the make competition irrelevant 2005. Blue sea systems innovative electrical systems built to last. This blog article is part of a series on the book blue ocean strategy by w. The strategy was endorsed in october 2012 at ministerial level through the limassol declaration3. 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. Jul 17, 2018 free blue ocean strategy powerpoint templates now that youve done the hard work of identifying your blue ocean strategy, its time to present it to top management. 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. Importance of the blue ocean strategy to a business. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. Why should companies continue to fight in tough competitive markets waters that are red with blood when they can find new waters that ar. 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. Blue ocean strategy is a new way of thinking, a new strategic mindset, a bold new path to winning the future. Blue ocean strategy ppt slides by yodhia antariksa 60197 views.
Most blue oceans are created from within red oceans by expanding existing industry boundaries. Blue ocean is a slang term for the uncontested market space for an unknown industry or innovation. 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. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades. Blue ocean strategy is a book published in 2005 and written by w. Jan 14, 2015 blue ocean strategy is a new way of thinking, a new strategic mindset, a bold new path to winning the future. Chan kim and renee mauborgne in the indie business book club. What is blue ocean strategy about blue ocean strategy. Blue ocean strategy is a landmark idea founded by w. Growth in the blue economy offers new and innovative ways to help steer the eu out of its current economic crisis. 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. You may or may not agree with the central philosophy, but you will be inspired. Your logo is irrelevant the 3step process to build a kickass brand the 7 steps to a successful business in a changing market nautical.
The concept of blue ocean strategy first took the business world by storm in 2005 when authors w. Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. Companies pursue blue ocean strategies to make competition irrelevant. All in all, blue ocean strategy is a book worth reading. Essay about blue ocean strategy 825 words bartleby. This article will outline that strategy, discuss the plas efforts to build its capabilities and address weaknesses that could undermine the strategy, and finally conclude that washington and its allies, especially tokyo, can limit chinas blue water ambitions only. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. All of the necessary documentation, illustrations and due diligence can be accessed and executed online with docusign. 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. This strategy makes the competitors irrelevant and the main driver of the companys profits are the decreased costs. Sorting through confusing forms and keeping track of your records is now easier than ever. In this way, it swam into a blue ocean, offering a plastic watch at a price that allowed people to purchase two or three watches at one time.
The risks of following a blue ocean strategy the adaptive. While definitions of what actually constitutes such a force vary, there is a requirement for the ability to exercise sea control at wide ranges. The concept of blue ocean strategies is new in the business world as it was first published in 2005 in the bookmanual blue ocean strategy, by w. 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, published by harvard business school press, boston, massachusetts, 2005, isbn 97815996192 blue ocean strategy is a business strategy book, first published on february 3, 2005. This international bestselling book sold more than a million copies in its first year of publication, and has. Blue ocean strategy is referred to a market for a product where there is no competition or very less competition.
In this article you will learn how to make your competition irrelevant and have sales and profit. This template enables managers and executives to create a detailed and comprehensible blue ocean strategy. Blue ocean strategy can be found on amazon blue ocean strategy. Jul 28, 2018 the strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. Blue ocean strategy is a business marketing strategy of creating a new market space for its services and products. 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.
Blue ocean strategy 4 tips for rising to the top of your. 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. Blue ocean strategy is a business strategy book, first published on february 3, 2005 by the harvard business school press. It is based on the view that market boundaries and industry structure are not a given and can be. You must keep in mind that there is a deeper potential of the marketplace that hasnt been explored yet. Value innovation strategy competes in an uncontested market space. May 30, 2017 it reduced costs by using plastic instead of metal, for example, and reducing the parts in each watch from 150 to 50. An introduction to blue ocean strategy mba knowledge base. Blue ocean strategy summary click here to read this article.
Value innovation is the cornerstone of blue ocean strategy 1 and it is the strategic move that allows a company to create a blue ocean. 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. How to create uncontested market space and make the competition irrelevant pdf by w. The on the blue ocean strategy essay 1969 words 8 pages.
A company will have more success, fewer risks, and increased profits in a blue ocean market. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. The structure can be created or recreated by the steps taken by players in the market. This blog article is a overview of some of the key points of the book by w.
Lets understand blue ocean strategy with the help of an example. Introduction it is not hard to see why blue ocean strategy has been so popular. Chinas blue water navy strategy and its implications. 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. 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.
Some strategic planning models are based on theories that dont quite pan out during gotomarket executions. How to create uncontested market space and make the competition irrelevant by w. Chan kim and renee mauborgne wrote a bestselling book, blue ocean strategy, which has been translated into 43 languages. In all, 75% of europes external trade3 and 37% of trade within the eu4 is seaborne. Blue ocean strategy summary by jessestarmer 395542 views. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Blue ocean strategy powerpoint templates present better. Blue ocean strategy including examples and pdf download. Free blue ocean strategy powerpoint templates now that youve done the hard work of identifying your blue ocean strategy, its time to present it to top management. Compete in existing market space create uncontested market space beat the competition make the competition irrelevant exploit existing demand create and capture new demand make the valuecost tradeoff break the valuecost tradeoff align the whole system of a firms activities with its strategic choice of differentiation or low cost.
A bluewater navy is a maritime force capable of operating globally, essentially across the deep waters of open oceans. Typically, companies in the red ocean pursue incremental improvements for customers through either low cost or differentiation. By that we can see that there is a lot of interest by the business people and academics around the world about that subject. Blue ocean strategy formulation the four principles of strategy formation click here to read this article. Blue ocean strategy presentation by ajay mohan goel 22067 views. 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. Blue ocean strategy and sustainability for strategic management. Blue sea systems designs and manufactures ac and dc electrical products engineered to withstand the demanding applications in marine and specialized vehicle electrical systems. Blue sea strategies makes participating in the senior life settlement asset class easy. The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. Much of this activity is concentrated around europes coasts, but.
Click here to download the blue ocean strategy summary pdf. Blue ocean strategy can be applied across sectors or businesses. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. Apple users can download legal and high quality music at a reasonable price from itunes making traditional sources of distribution of music irrelevant. To join the free indie business book club, click here.
How to create uncontested market space and make the competition irrelevant brand strategy 101. Apple ventured into digital music in 2003 with its product itunes. The objective of the blue growth strategy was to promote smart, sustainable and inclusive growth and employment opportunities in europes maritime economy. 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 idea in brief the best way to drive profitable growth. Introduction if we count all economic activities that depend on the sea, then the eus blue economy1 represents 5. It captures the current state of play in the known market space. It can contribute to the eus international competitiveness, resource efficiency5, job creation and new sources of growth whilst safeguarding biodiversity. 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 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. Chan kim and renee mauborgne, professors at insead. Sep 26, 2016 the strategy canvas provides a highly visual tool to help look at future options. Blue ocean strategy is where a company creates a completely new market space or market category. How to create uncontested market space and make the competition irrelevant, a book by professors w. It is about creating and capturing uncontested market space, thereby making the competition irrelevant.
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