Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. You must keep in mind that there is a deeper potential of the marketplace that hasnt been explored yet. Back in 2008, i wrote a paper on blue ocean strategy which was published at the international conference on management. The on the blue ocean strategy essay 1969 words 8 pages. The strategy clearly brings out the fact that the only way to beat competition is to stop trying to beat it. Blue ocean strategy can be found on amazon blue ocean strategy. Essay on blue ocean strategy a marketing book 1053 words. A blue ocean is contrasted with a red ocean where all market participants are doing the same thing and fighting for the same customers. 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. Unlike red oceans, which are well explored and crowded with competitors. Biblical in its commentary of the bloody waters of competitive red ocean market forces.
Blue ocean strategy introduces analytical tools to minimize risk. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. Apr 03, 2020 the fundamental premise of the blue ocean strategy is that as opposed to continuing to compete in the red ocean, you should try to find new space in which to sell your goods and services. Blue ocean strategy adalah strategi menciptakan ruang pasar baru yang belum termanfaatkan. Essay about blue ocean strategy 825 words bartleby. Jan 27, 2014 sustainability and renewal of blue ocean strategy sustainability can be traced to the following imitation barriers. The buffer blog has exposed a blue ocean strategy by harnessing acumen for research and compiling data. Blue ocean strategy, the suggestion that cirque du soleil created an uncontested market space by innovating their entertainment service is not a good suggestion. Essay on blue ocean strategy a marketing book 1053. 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. How to create uncontested market space and make competition irrelevant, is a market space that is undeveloped, and untapped by competitors. Blue ocean strategy including examples and pdf download. How to create uncontested market space and make the competition irrelevant, a book by professors w. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w.
This blog article is a overview of some of the key points of the book by w. Blue ocean strategy red ocean strategy blue ocean strategy compete in existing market space. Blue ocean strategy is a book published in 2005 and written by w. How to create uncontested market space and make competition irrelevant by w. 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. From blue ocean strategy to blue ocean leadership insead.
The expanded edition of blue ocean strategy, is metaphorical, witty, and almost biblical in its commentary of the bloody waters of competitive red ocean market forces. Blue ocean strategy is the most successful book on business masterplanning. 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. From point of view of the article, the main difference between these two concepts, where red ocean strategy is more conservative, and costcutting, and blue ocean strategy is creative and differentiating. With this understanding of the link between blue ocean strategy and blue ocean leadership, we define blue ocean leadership as creating a leap in leadership strength fast and at low cost to release organisations ocean of unrealised talent and energy. In our research we found that 86% of launches were line extensions incremental improvements within the red ocean of existing market space. The blue ocean strategy is a book about finding your niche within a niche so you can stay competitive. My ocean is turning red updates on all cases and examples in the book, bringing.
Sep 26, 2016 the strategy canvas provides a highly visual tool to help look at future options. How to create uncontested market space and make the competition irrelevant by w. By that we can see that there is a lot of interest by the business people and academics around the world about that subject. The following table is useful in highlighting the different focus areas between a red ocean and blue ocean strategy. They are the authors of blue ocean strategy, which is recognized as one of the most iconic and impactful strategy books ever written. 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. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. 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. To seize new profit and growth opportunities, they also need to create blue oceans. Blue ocean strategy proposes that businesses can have more success by creating a blue ocean, rather than trying to compete in the red ocean the traditional market. Let me try to explain this in simple terms for the benefit of everyone.
Since, dividing up existing demand and benchmarking the competitors, blue ocean strategy is regarding grow demand and break away from the competition. Blue ocean strategy book summary bestbookbits daily. Red ocean strategies compete in existing markets which is referred to head to head competition, where as blue ocean strategies exist in. The concept of blue ocean strategies is new in the business world as it was first published in 2005 in the book manual blue ocean strategy, by w. The first principle of blue ocean strategy is to reconstruct market boundaries to break from the competition and create blue oceans. 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. It is worth noting the organizations will move between blue oceans and red oceans over time. They are the authors of blue ocean strategy, which has sold over 3. Successful trailblazing organizations will attract competition, creating a red ocean.
Blue ocean strategy proposes that businesses can have more success by creating a blue ocean, rather than trying to compete in the red ocean. Jul 30, 2017 this strategy can work in the short run but it is a lot wiser for people to fast embrace the blue ocean strategy. Sep 24, 2017 in 2005, blue ocean strategy, expanded edition. They accounted for 62% of total revenues and a mere 39% of total profits. Blue ocean strategy makes companies to come out of ocean of bloody competition by creating market space which is uncontested and that makes the completion irrelevant.
It is being published in a recordbreaking 44 languages and is a w. The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. Chan kim and renee mauborgne have created a comprehensive set of analytic tools and frameworks to create blue oceans of new market space. Our multimedia cases and interactive exercises are designed to help you build a deeper understanding of key blue ocean strategy concepts, developed by worldrenowned professors chan kim and renee mauborgne. The four pillars of blue ocean leadership insead knowledge. Namun ternyata, kesuksesan sebuah perusahaan kini tidak lagi diukur dengan memenangi persaingan berdarahdarah di red ocean strategy. Blue ocean strategy 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. Let us say the market that we operate is an ocean cle. The blue ocean strategy has been used by companies like cirque du soleil to completely redefine the industries they entered by turning the conventional industry boundaries on its head. Dec 11, 2016 blue ocean strategy the blue ocean approach is a strategic tool that helps innovation strategists asses current and desired future strategic states whereasred ocean is a current state. Sep 23, 2014 view the entire blue ocean leadership series here.
How to create uncontested market space and make the competition irrelevant from the worlds largest community of rea. 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. May 30, 2017 a blue ocean is contrasted with a red ocean where all market participants are doing the same thing and fighting for the same customers. Blue ocean strategy, page 47 based on their research, kim and mauborgne found six approaches to reconstructing market boundaries which, collectively, are known as the six paths framework. A business model describes the rationale of how an organization creates, delivers, and captures value economic, social, cultural, or other forms of. Blue ocean pedagogical materials, used in over 2,800 universities and in almost every country in the world, go beyond the standard casebased method. 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.
Blue ocean strategy is the most successful book on business. Indepth research that reaches beyond that typical talking points. Pdf blue ocean strategy download full pdf book download. 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. You are uncontested because you have created a product or service that is exclusive and unchallenged. The fundamental premise of the blue ocean strategy is that as opposed to continuing to compete in the red ocean, you should try to find new space in which to sell your goods and services. Chan kim and renee mauborgne 2006 blue ocean strategy has been described as a must read for all business students. 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 blue oceans and to do so in a way that people own and drive the process.
I wish i could say my own pursuit of enlightenment led me to chan kim and renee mauborgnes masterpiece on embracing and leveraging difference. Chan kim and renee mauborgne, professors at insead. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. His book blue ocean strategy, coauthored with renee mauborgne, has sold 3. The vieoints of the authors are discussed with a greater clarity in order to clearify both the terms with respect to different references provided. The book succeeds in showing how businesses, can outdo their competitors.
Blue ocean case study on blue ocean strategy johnson wales. On our own blog, we regularly write posts that reach 2,000 words or more. Blue ocean vs red ocean strategies 6 major differences. The premise of the book is that companies can succeed by creating. The book mostly borrows from a range of over 140 strategic marketing moves within a period of over a century. Impact of blue ocean strategy on organizational performance. The strategy canvas provides a highly visual tool to help look at future options. Blue ocean strategy is a bad book, but it is not your usual bad book. Like the blue ocean, it is vast, deep and powerful in terms of opportunity and profitable growth.
List the factors the customer cares about, and current dimensions of competition. Value innovation is the corner stone of blue ocean strategy. It has sold over 4 million copies and is being translated in a recordbreaking 46 languages. Professors chan kim and renee mauborgne introduced the concepts of red and blue oceans in their international bestseller blue ocean strategy. In a blue ocean, you are the only provider of consequence. Pdf impact of blue ocean strategy on organizational.
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. Typically, companies in the red ocean pursue incremental improvements for customers through either low cost or differentiation. High quality content that goes beyond the requisite 500 words. Blue ocean strategy presents a systematic approach to making the. First published in 2005, it was updated and expanded with fresh content in 2015. By low cost here we refer to time, as time is the most expensive and limited resource of leaders. Itu sebabnya kini hadir istilah baru yang disebut blue ocean strategy. Blue ocean strategy the blue ocean approach is a strategic tool that helps innovation strategists asses current and desired future strategic states whereasred ocean is a current state. Chan kim and mauborgne use the metaphor of red and blue oceans to describe. Value imitation does not make sense based on conventional strategic logic blue ocean strategy conflicts with the brand image natural monopoly. Innovation, new market space and creating demand are central characteristics. The chart above summarizes the distinct characteristics of competing in red oceans red ocean strategy versus creating a blue ocean blue ocean strategy. This strategy can work in the short run but it is a lot wiser for people to fast embrace the blue ocean strategy. Tru group inc blue ocean strategy belongs in the dead sea.
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. Blue ocean strategy blue ocean strategy introduction blue ocean strategy is a marketing book by w. All in all, blue ocean strategy is a book worth reading. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of. The blue ocean strategy can be extremely rewarding, but can also be the most work intensive. Blue ocean case study on blue ocean strategy johnson. 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. Based on a study of 150 strategic moves spanning more than 100 years. You may or may not agree with the central philosophy, but you will be inspired.
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