How to create uncontested market space and make the competition irrelevant is the 2015 update to the classic business strategy text of the same name originally published in 2005. Using blue ocean strategy to reduce new product failure. The database and research have continued to expand. It was built on the notion of creating new markets where competition is irrelevant and the opportunity to grow and be profitable is unlimited.
Outline the main components of kim and mauborgnes 2004 concept of blue ocean strategy. Kim and mauborgne 2004a indicate that demand is generated in the blue oceans. We also use importanceperformance analysis as a supplementary to blue ocean strategy to show what the operators should do at the present. Blue ocean strategy how to create uncontested market space and make the competition irrelevant boston. Blue ocean strategy is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. We believe that blue ocean strategy will send you on the right path towards creating your own uncontested space. 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. I wish i could say my own pursuit of enlightenment led me to chan kim and renee mauborgnes masterpiece on embracing and leveraging difference. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. 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. Strategi samudera biru, atau lebih populer dengan istilahnya dalam bahasa inggris, blue ocean strategy, adalah strategi yang menantang perusahaan untuk keluar dari samudra merah persaingan berdarah dengan cara menciptakan ruang pasar yang belum ada pesaingnya, sehingga kata kompetisi pun menjadi tidak relevan. Ford model t unveiled in 1908,themodett was the first massproduced.
As a second example, i point out ford which model t was sold at half the. Blue ocean pedagogical materials, used in over 2,800 universities and in almost every country in the world, go beyond the standard casebased method. In red oceans, there is a competitiveadvantage worldview, companies are often driven to outperform rivals and capture greater shares of existing or shrinking market space. Impact of globalization on the australian automobile industry case of ford falcon. Blue ocean strategy is applied to create a blue ocean to chinese 3g operators. Browse a selection of examples and case studies of blue ocean strategic moves. Blue ocean strategy free download as powerpoint presentation. The concept of blue ocean is based on the idea that the business universe is made up. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades. Fords model t, launched in 1908, is a classic illustration of a.
Blue ocean strategy theory and criticism 1246 words 5 pages. The real opportunity is to create blue ocean for uncontested market space. Blue ocean strategy including examples and pdf download. Is it possible to apply blue ocean strategy for tourism. Chan kim and renee mauborgne 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. Reviewing the blue ocean strategy universiteit twente. The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. Value innovation is a new way of thinking about and executing strategy that results in the creation of a blue ocean. Value innovation value innovation places equal emphasis on value and innovation. Curves blue ocean strategy case study ford model t blue ocean strategy. Essay about blue ocean strategy 825 words bartleby. Pdf blue ocean strategy download full pdf book download.
Blue ocean strategy strategic management automotive. This blog article is a overview of some of the key points of the book by w. Welcome to blue ocean strategy were thrilled to have you on board. This article uses examples from the real world to discuss the specifics of the blue ocean strategy. A blue ocean, as used in the title of this book and strategy, is basically. Blue ocean strategy and its implications for businesses.
Even fords revolu ing the distinctive strength of the business tionary. In this way, it swam into a blue ocean, offering a plastic watch at a price that allowed people to purchase two or three. Chan kim born 1952 is a koreanborn business theorist, professors of strategy and management at insead, and codirector of the insead blue ocean strategy institute in fontainebleau, france. Blue ocean strategy is a landmark idea founded by w. Blue ocean strategy how to create uncontested market. The whole idea of the blue ocean strategy is to create uncontested market spaces that creates new. The key theme in this article is that when businesses are faced with a choice of battling competition in saturated markets or creating an entirely new market. Pdf the study deals with the blue ocean strategy bos that offers users a.
Value innovation strategy competes in an uncontested market space. Jan 06, 2016 in their 2005 bestselling book blue ocean strategy w. There is ample opportunity for growth tbat is both profitable and rapid. It reduced costs by using plastic instead of metal, for example, and reducing the parts in each watch from 150 to 50. The on the blue ocean strategy essay 1969 words 8 pages. Chan kim and renee mauborgne provide tools and frameworks for creating blue oceanstheir term for all the industries not in existence today. To understand the concept of blue ocean strategy kim chan w. 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.
Guest columnist blue ocean strategys fatal flaw by wayne e. Further the blue ocean strategy aims to create new best practice rule by breaking the existing value cost trade off, thereby creating uncontested market space, thus making the competition irrelevant. Chan kim and renee mauborgne explicate two types of market growth strategies. Blue ocean shift, however, provides a clear process for business identifying opportunities and developing plans for. 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. Examples include fords 1908 model t, gms 1924 car for every purse and purpose. Model t rolled off henry fords assembly line in 1908, but. Set sail towards your blue ocean jk beteiligung gmbh. The strategic logic of high growth hbr julyaugust 2004. The authors use the metaphor of the blue ocean as a direct contrast to red oceans. 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.
List the factors the customer cares about, and current dimensions of competition. Jun 21, 2007 blue ocean strategy red ocean strategy 2. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. It is being published in a recordbreaking 44 languages and is a bestseller across five. Blue ocean strategy and sustainability for strategic management. 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. Blue ocean strategy and sustainability for strategic. Change and risk management main page strategy related main page. Blue ocean strategy is a systematic approach to finding innovative, cost efficient, value adding, productmarket matches. How to create uncontested market space and make the. Aug, 2010 ford has recently posted profits and are projecting a good 2011. Blue ocean strategy introduces analytical tools to minimize risk. The creation of blue oceans is about driving costs down while simultaneously driving value up for buyers.
However, the price competition only results in a red. Blue ocean strategy chapter 14 the four action framework chapter two. Red ocean in blue oceans, demand is created rather than fought over. Curves blue ocean strategy case study ford model t blue ocean strategy case study. 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. Chan kim is a professor of strategy and management at insead and. R0410d to understand the limitations and sustainability of the blue ocean strategy kim chan w.
By the end of 2004, curves is expected to reach eight. There is ample opportunity for growth that is both profitable and rapid. 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. Strategi samudra biru berfokus pada menumbuhkan permintaan dan menjauh dari. Critically assess the strengths and limitations of this approach to pursuing competitive advantage. The bluest ocean strategy for emerging ict business. They may be the only us automaker that hasnt filed for bankrupcy protection. Chan kim and renee mauborgne, develops and explains how to beat the competition by reaching beyond it into new unexplored markets. 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. Innovation, new market space and creating demand are central characteristics. 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. Ford has recently posted profits and are projecting a good 2011. When henry ford made cheap, reliable cars people said, nah, whats wrong with a horse.
They are the authors of blue ocean strategy, which has sold over 3. In their 2005 bestselling book blue ocean strategy w. 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. Henry ford, launching the automobile, had a blue ocean strategy. Ford automotive industry case study blue ocean strategy. How to create uncontested market space and make the competition irrelevant hardcover.
Download citation blue ocean strategy despite a longterm decline in the circus industry, cirque du soleil. Blue ocean strategy is a book published in 2005 and written by w. Pdf the influence of blue ocean strategy on organizational. How to create uncontested market space and make the competition irrelevant by w. He is known as coauthor of the 2005 book blue ocean strategy. 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. 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. This article explains what the blue ocean strategy is and how it can become a game changer for businesses stuck in stagnating markets.
They represent businesses that may not be around today, or werent around until they came on to the scene. 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. The art of war by sun tzu, good strategy bad strategy. Before that momentous event, people could go by train, by horse, or on foot to wherever they. How to create uncontested market space and make the competition irrelevant, a book by professors w. Blue ocean strategy has helped numerous companies and organisations across the globe to create new market space and achieve pro. Achieved via the delivery of features that have a highest marginal benefit to customer needs. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. Jul, 2018 for struggling businesses, mauborgne recommended the strategy canvas, which is featured in her and kims newest book, blue ocean shift. Pollard in their international bestseller, blue ocean strategy, w.
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