It requires the right research, patience and focus. Blue ocean strategy pushes companies to create new industries and break away from the competition. They urge companies to value innovation that focuses on utility, price, and. If youd like to learn more about blue ocean strategies, then the best book on the.
Companies should instead look for new market space and ways to reinvent the industry. They have margin issues, problems with customer retention, growth problems, and are basically stuck in a rut. In the decade since the publication of the first edition of our book, blue ocean strategy, weve had. Blue ocean strategy and its implications for businesses. Download for offline reading, highlight, bookmark or take notes while you read blue ocean strategy, expanded edition. How to create uncontested market space and make the competition irrelevant, a book by professors w. 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. 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. They are the authors of blue ocean strategy, which has sold over 3. The blue ocean strategy can lead to expansion of the business through increased profits.
This often requires overcoming an intense level of competition and can often involve the commoditization of the industry where companies are competing mainly on price. A red ocean strategy is based on traditional strategic. Red oceans are all the industries in existence today the known market space. Surface 3 and apple watch red oceans v blue oceans strategy. It became a huge bestseller, and remains popular today. Unlike the red ocean strategy, the conventional approach to business of. Blue ocean strategy is where a company creates a completely new market space or market category. Companies under red oceans strive to outperform their rivals by grasping a higher proportion of existing market share at another companys loss. What companies have used blue ocean strategy techniques.
Renee mauborgne is a professor of strategy and management at insead and codirector of the insead blue ocean strategy institute, in fontainebleau, france. Blue ocean strategy focuses on the ability to create new market space where there is no competition and where the demand for the services becomes uncontested. Authors our story what we stand for books blue ocean global network. What is blue ocean strategy about blue ocean strategy. This strategy, which is based on extensive research of hundreds of companies spanning across decades and including several industries, proclaims that instead of battling competitors, companies can create new markets for themselves. Like the blue ocean, it is vast, deep and powerful in terms of opportunity and profitable growth. One of my favorite business books is called blue ocean strategy, written by w. Highlighting 6 principles unique to blue ocean strategy and introducing a framework from which decisionmakers in any industry can work from, kim and mauborgne reveal that innovation can be achieved through analytical models as opposed to strokes of genius or luck. There were many coffee shops that were more established when starbucks came on the scene.
Companies that are already in existence may make a solid decision to come out of the usual way of doing things and go into uncharted grounds. Companies pursue blue ocean strategies to make competition irrelevant. The database and research have continued to expand. For this strategy, the key goals are to beat the competition and exploit existing demand. As i read the book i would put it down often just to think about how i could use. 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. Student questions i need company who is in red ocean. To understand red ocean strategy let us begin by defining blue ocean strategy. And what we have been lacking is a roadmap to get there. 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.
Make the competition irrelevant download free epub, pdf. Before we dive into blue ocean strategy examples, lets get clear on what a. Cell phones, and particularly smart phones manufacturers, are in red oceans. A red ocean strategy involves competing in industries that are. It is being published in a recordbreaking 44 languages.
Learn about red ocean strategy and how it differs to blue ocean strategy. The field of marketing has placed great emphasis on using ever finer market. Red ocean is where many firms compete, where they chase the same customers. Here, companies try to outperform their rivals to grab a greater share of. According to kim and mauborgne, in italics blue ocean strategy end italics challenges companies to break out of the red ocean of bloody competition by creating uncontested market space that makes the. In short, you create a blue ocean by focusing on the factors that customers really care about, while discarding factors they dont. 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. These companies have similar products or services without substantial enough differentiation to separate themselves from the pack. The premise of the book is that companies can succeed by creating.
Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. It is able to achieve low costs through many methods including using. 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. This blog article takes a look at what kind of roi some companies have achieved by implementing a blue ocean strategy by w. Chan kim, of blue ocean strategy, expanded edition 2015. For example, competing factors in blue ocean strategy are similar to the definition of finite and infinite dimensions in funky business. How to create uncontested market space and make the competition irrelevant ebook written by w. It seems that most all of the fortune companies play in red oceans. 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.
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. What are some successful examples of blue ocean strategy. Chan kim and renee mauborgne in the indie business book club. 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. It should be noted that most new business launches today are launches in the red ocean domain. They assert that these strategic moves create a leap in value for the company. The chart above summarizes the distinct characteristics of competing in red oceans red ocean strategy versus creating a blue ocean blue ocean strategy. Blue ocean strategy is a powerful framework for finding new business opportunities. Blue ocean strategy is a book published in 2005 and written by w.
Luckily, there are many strategies you can use in order to gain an edge on. Chan kim and renee mauborgne, professors at insead. Instead of focusing on their coffee, however, they worked to. This creates a new product offering that doesnt currently exist. But our research shows the future is on how to create. This blog article is a overview of some of the key points of the book by w. So blue ocean strategy is about how can any company or organization break out of the red ocean of bloody competition or existing market space, which tends to be very crowded and. The metaphor defined in the book is that many companies compete with their rivals in bloody red oceans. Blue ocean strategy is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. Chan kim and renee mauborgne, professors at insead, back in 2004. Blue ocean strategy how to create uncontested market. What makes blue ocean shift different than other strategy books. In order to keep themselves afloat in the marketplace, proponents of red ocean strategy concentrate on creating competitive advantages by examining the blueprints of their peerscompetitors. This competition gets bloody hence red ocean and is most intense in markets where there is.
These businesses struggle at operating and market differentiation from others. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. Blue ocean strategy is an important book for anyone seeking a strategy that can help them in their career and in business. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. 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 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. See comparison between red and blue ocean strategies here in one simple table. Blue ocean strategy chan kim and renee mauborgne was released in 2005 by harvard business school press.
Just as blue ocean strategy claims that a red ocean strategy does not guarantee success, funky business explained that competitive strategy is the route to nowhere. We will introduce the aspects of red ocean strategies that most of the companies use around the world, and then we will compare the advantages and. Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group. Blue ocean strategy is where a company creates a completely new market space or market. Their solution involves taking a creative approach to the normal view of competition. Blue ocean strategy including examples and pdf download. For generations, business schools have taught some form of strategy for business. How to create uncontested market space and make the competition irrelevant download free epub. 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. A red ocean strategy involves competing in industries that are currently in existence. Thats the real opportunity as we see it for small companies.
Based on an eponymously titled book, this strategy argues that cutthroat. Learn more about red and blue ocean strategies from the authors of the book on their website. A blue ocean strategy may come out of a red ocean strategy. Blue ocean strategy is a concept that has been pioneered by insead professors, w. 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.
A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. But its not always clear how to create a blue ocean strategy for yourself. The mental models that undermine marketcreating strategies. 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.
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