Chan kim and renee mauborgne in their book titled blue ocean strategy. Blue ocean is a slang term for the uncontested market space for an unknown industry or innovation. The book includes several excellent examples of companies that used the. 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. Blue ocean strategy authors reveal how they sold 4m.
Companies should instead look for new market space and ways to reinvent the industry. This blog article is a overview of some of the key points of the book by w. In this book summary of blue ocean strategy, well outline the key concepts, tools and tips from the book to help you create uncontested market space and make your. 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 blog article takes a look at what kind of roi some companies have achieved by implementing a blue ocean strategy by w. Chan, mauborgne, renee, mauborgne, renee a download it once and read it on your kindle device, pc, phones or tablets. Jun 08, 2007 profit model of blue ocean strategy 30. 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. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure.
What is the blue ocean strategy the term blue ocean was coined by two professors w. Value innovation strategy competes in an uncontested market space. Blue ocean strategy and blue ocean shift, created by worldrenowned professors chan kim and renee mauborgne, is a new way of thinking, a movement away from a. The book includes several excellent examples of companies that used the existing product or service but found a way to market these to previously untapped. In 2019, chan kim and renee mauborgne were named the worlds most influential business thinkers by. Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. Feb 03, 2015 buy blue ocean strategy, expanded edition revised ed. 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.
Chan kim and renee mauborgne launched a revolution in business strategy by encouraging firms to evacuate shark infested waters. 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. Just think of its initial blue ocean shift in book retailing that separated it from the pack with its offering of the largest selection of books in the world. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. Everyday low prices and free delivery on eligible orders. 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 global phenomenon, embraced by business worldwide and. In their 2005 bestselling book blue ocean strategy w. You may or may not agree with the central philosophy, but you will be inspired. Blue ocean strategy is a powerful framework for finding new business opportunities. The belief that blue ocean strategy is the same as innovation.
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. It is important to note that blue ocean strategy is not a prescribed series of steps which can be followed and it is therefore not easy to implement, rather, it is a concept which can be kept in mind to help focus your strategic efforts on blue oceans. Blue ocean strategy can be found on amazon blue ocean strategy. It is important to note that blue ocean strategy is not a prescribed series of steps which can be followed and it is therefore not easy to implement. Chan kim and renae mauborgnea in their book blue ocean strategy. Blue ocean strategy is a book published in 2005 and written by w. Buy blue ocean strategy, expanded edition revised ed. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. It presents a systematic approach to making the competition irrelevant and outlines principles and tools any organization can use to create and capture their own blue oceans. How to create uncontested market space and make the competition irrelevant, a book by professors w. All in all, blue ocean strategy is a book worth reading.
The belief that blue ocean strategy is a theory of marketing and a niche strategy. The authors argue that lasting success comes not from battling competitors but from creating blue oceans untapped new market spaces ripe for growth. Blue ocean strategy including examples and pdf download. Sep 26, 2016 the strategy canvas provides a highly visual tool to help look at future options. Chan kim and renee mauborgne explicate two types of market growth strategies.
Blue ocean strategy is a method of creating business strategy of the enterprise, which was described in a book by w. Sep 24, 2017 in 2005, blue ocean strategy, expanded edition. Blue ocean strategy is referred to a market for a product where there is no competition or very less competition. His book blue ocean strategy, coauthored with renee mauborgne, has sold 3. This is why a sustainable blue ocean strategy requires a fully developed and. Chan kim, 9781625274496, available at book depository with free delivery worldwide. Chan kim and renee mauborgne, professors at insead. An introduction to blue ocean strategy mba knowledge base. The misconception that blue ocean strategy is a lowcost strategy that focuses on low pricing. Blue ocean strategy is the 2015 update to the classic business strategy text of the same name originally published in 2005. How to create uncontested market space and the make competition irrelevant 2005.
The strategy canvas provides a highly visual tool to help look at future options. Blue ocean pedagogical materials, used in over 2,800 universities and in. Blue ocean idea index the blue ocean idea index is a simple but robust test demonstrating how the sequence of utility, price, cost, and adoption form an integral whole to ensure commercial success through blue ocean strategy. The text offers a practical handbook to business students and.
In a blue ocean because of the uniqueness of your offering you are able to service your customers in uncontested at least for now space. The four actions framework is used to help create value innovation and break the valuecost tradeoff. Blue ocean strategy challenges companies to break out of the red ocean of bloody competition by creating uncontested market space that makes the competition. This strategy revolves around searching for a business in which very. But its not always clear how to create a blue ocean strategy for yourself. It then raises buyer value by creating new features or services the buyer wants.
Chan kim and renee mauborgne, authors of one of the best selling business books ever published, share the secret to their success. Chan kim and renee mauborgne, launched a revolution in business strategy. Closing the gap between blue ocean strategy and execution. Achieved via the delivery of features that have a highest marginal benefit to customer needs. 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 pushes companies to create new industries and break away from the competition. A global bestseller and one of the best business strategy books available, blue ocean strategy challenges everything you thought you knew about strategic. In short, you create a blue ocean by focusing on the factors that customers really care about, while discarding factors they dont. Estrategia do oceano azul blue ocean strategy em portugues do brasil by w chan kim, ren. This creates a new product offering that doesnt currently exist. 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.
It is about creating and capturing uncontested market space, thereby making the competition irrelevant. May 31, 2016 in this book summary of blue ocean strategy, well outline the key concepts, tools and tips from the book to help you create uncontested market space and make your competition totally irrelevant. First published in 2005, it was updated and expanded with fresh content in 2015. That is, you are swimming in a blue ocean, largely devoid of the competitors fighting in the commoditized red ocean space. 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. In this article, we will look at 1 what is a blue ocean strategy. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. 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.
After all, which firm would not to be operating in. Chan kim and renee mauborgne in their book blue ocean. 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. What is blue ocean strategy about blue ocean strategy. Blue ocean strategy can be applied across sectors or businesses. 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. 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. A blue ocean strategy reduces costs by reducing features or services that are competed over, but are not important to buyers. Embraced by organizations and industries worldwide, blue ocean strategy is a global phenomenon that has sold over 4 million copies. The blue ocean strategy book has been sold over 3,5 million times, was published in 43 languages.
Well cover more of what this looks like in a number of examples, as well as frameworks for visualizing this. Blue ocean strategy is the most successful book on business masterplanning in recent years. 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. Blue ocean strategy has sold over 4 million copies, is being published in a recordbreaking 46 languages, and is a bestseller across five continents. 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. Blue ocean idea index the blue ocean idea index is a simple but robust test demonstrating how the sequence of utility, price, cost, and. It is being published in a recordbreaking 46 languages and is a bestseller across five continents. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was. Regarding blue ocean strategy and the authors of the book, writes. Jul 16, 2015 in this article, we will look at 1 what is a blue ocean strategy. The belief that blue ocean strategy sees competition as bad when in fact it can be good for. Chan kim, rena e mauborgne and a great selection of related books, art and collectibles available now at. Furthermore the blue ocean strategy was awarded with.
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. Blue ocean strategy is based on the idea that every enterprise can achieve higher profit by creating new demand in noncompetitive market so called blue ocean. 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. 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. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. In red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. In sharp contrast to companies playing by traditional rules, the creators of blue oceans never used the competition as their benchmark. The text offers a practical handbook to business students and entrepreneurs who wish to rise above the fray of the competition, become pioneers in previously uncharted market territory, and gain access to impressive growth opportunities and an untapped customer base. Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group. How to create uncontested market space and the make. One way to get started is by answering the following four. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of strategy and international management at insead. Chan kim and renee mauborgne, develops and explains how to beat the competition by reaching beyond it into new unexplored markets. Red oceans are described as all the industries in existence today.
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