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 porters classic five forces. This is called grasping the opportunities and applying the blue ocean strategy theory into practice. Their book teaches readers how to create uncontested markets for. 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. Blue ocean strategy is a landmark idea founded by w. Dec 15, 2015 the tenyear expanded edition of blue ocean strategy came out this year. His book blue ocean strategy, coauthored with renee mauborgne, has sold 3. After reading you will understand the basics of this powerful strategy tool. 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 is referred to a market for a product where there is no competition or very less competition.
Blue ocean strategy introduces analytical tools to minimize risk. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. It was built on the notion of creating new markets where competition is irrelevant and the opportunity to grow and be profitable is unlimited. Pdf blue ocean strategy for project based organizations. Since, dividing up existing demand and benchmarking the competitors, blue ocean strategy is regarding grow demand and break away from the competition. Drawing on more than a decade of new research, blue ocean shift is the definitive guide to help you move beyond competing, inspire your peoples confidence, and seize new growth. 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. Therefore the market is usually heavily populated by competition and there are a set of rules that is known. It shows how to transform the public sector on the local, state and national level through highimpact, lowcost initiatives that cut across ministries, agencies, ngos and municipalities. 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. How to create uncontested market space and make the competition irrelevant download free epub, pdf. Pdf blue ocean strategy download full pdf book download.
Blue ocean strategy and its implications for businesses. The blue ocean strategy offers users a framework for creating uncontested market. May 30, 2017 t his month, we read blue ocean strategy by w. The blue ocean strategy concept has been adopted as a means to implement various initiatives to achieve national key result areas. Blue ocean strategy paper adel erolsky university of phoenix mkt421 ron rosalik august 25, 2014 blue ocean strategy paper in todays business world, competition is a big concern for nearly every corporation. Jun 21, 2007 blue ocean idea index boi other companies companies should build their blue ocean strategy in the sequence of utility, price, cost, and adoption, these criteria form an integral whole to ensure commercial success. How to create uncontested market space and make the. Sign up to get useful tips, tools and realworld cases and learn how to create your own blue ocean. Blue ocean strategy is a book published in 2005 and written by w. In 2019 upb is at full enrollment with campuses in two bolivian cities and construction of a. The blue ocean strategy is a management and leadership paradigm that is based on the idea that every enterprise can achieve higher profit by creating new demand in noncompetitive markets. Blue ocean strategy is a concept that has been pioneered by insead professors, w. The blue ocean idea index provides a simple but robust test of this system view. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of strategy and international management at insead.
How to create uncontested market space and make the competition irrelevant, a book by professors w. Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. The idea is that instead of struggling to survive in the sharkinfested red oceans of vicious competition, entities should move to the blue oceans. This is why a sustainable blue ocean strategy requires a fully. National blue ocean strategy nbos nbos refers to the national blue ocean strategy or strategi lautan biru nasional. This article explains the blue ocean strategy, developed by w. Red ocean and blue ocean approach to industry boundaries. Blue ocean strategy continues to grow in popularity across the world and is widely used in practice and in mba and executive education classrooms. But in most cases, a blue ocean is created from within a red ocean when a company. Comic relief rapidly achieved 96 percent national brand awareness and has. List the factors the customer cares about, and current dimensions of competition. The eleventh malaysia plan used blue ocean strategy tools and frameworks to formulate highimpact, lowcost national strategies that are able to be rapidly executed. Chan kim and renee mauborgne in the indie business book club.
Value innovation strategy competes in an uncontested market space. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Blue ocean strategy page 1 main idea the best way to beat your competition is, in fact, to stop competing against them. Companies pursue blue ocean strategies to make competition irrelevant. 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. This blog article takes a look at what kind of roi some companies have achieved by implementing a blue ocean strategy by w. This framework addresses not only the analytic aspects behind the creation of blue ocean strategy but also the allimportant human aspects of how to bring an organization and its people on this journey with a willingness to execute these ideas in.
Chan kim and renee mauborgne, the writers of the 2005 book blue ocean strategy. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. Educational institutions urged to employ blue ocean strategy. 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. Insead is the home of the blue ocean strategy open. What is blue ocean strategy about blue ocean strategy. The summit, which was launched in 2009, breaks down bureaucratic silos through fair process, and is. Blue ocean strategy and sustainability for strategic management. Essay about blue ocean strategy 825 words bartleby. Pdf harvard business school press blue ocean strategy. This blog article is a overview of some of the key points of the book by w.
How to create uncontested market space and make the competition irrelevant, 10. Examining the emergence and evolution of blue ocean strategy. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades. The concept of blue ocean is based on the idea that the business universe is made up. Blue ocean strategy bos, which was founded and inspired by professor w.
Closing the gap between blue ocean strategy and execution. Blue ocean strategy as a tool for improving a companys marketing function. To achieve this, the malaysian government is applying the blue ocean strategy principles of high impact, low cost and rapid execution to national development. In other words, when you go headtohead against rivals for a share of the existing market, this is like competing in a red ocean. Malaysia national blue ocean strategy nbos youtube.
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. In a few cases, companies can give rise to completely new industries, as ebay did with the online auction industry. Blue ocean strategy bos is a management concept which. How to create uncontested market space and make the competition irrelevant pdf by w. Chan kim and renee mauborgne wrote a bestselling book, blue ocean strategy, which has been translated into 43 languages. That is why i am suggesting that blue ocean strategy principles lend themselves well to the education sector.
Importance of the blue ocean strategy to a business. There is ample opportunity for growth tbat is both profitable and rapid. Pdf harvard business school press blue ocean strategy rajeh. The strategic edge of a blue ocean thinker insead knowledge.
Chan kim and renee mauborgne in their book titled blue ocean strategy. 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. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. 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. National blue ocean shift nbos is formulated and executed through the nbos summit, a unique and dynamic national strategy platform which brings together ministries, agencies, all levels of government and the private sector on a voluntary basis. Blue ocean shift provides a roadmap for national development. Blue ocean strategy is a strategy that advice companies. Our dean, our chairman, the board, the advisory council, the national and international councils and the fondation insead. This article explains what the blue ocean strategy is and how it can become a game changer for businesses stuck in stagnating markets. The most appropriate unit of analysis is the strategic move, the set of managerial actions and decisions involved in making a major marketcreating business offering. Kementerian sumber manusia national blue ocean strategy.
This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. 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. The case of jordan article pdf available in jordan journal of business administration 82. 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. Blue ocean strategy including examples and pdf download. Although it was developed with the intention to motivate the private sectors and industries to create new demands by venturing into areas of greater potential, this concept has been tailored and adopted into. How to create uncontested market space and make the competition irrelevant by w. Blue ocean strategy is about offering alternative services that have different functions and forms but the same purpose.
Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to. It is the mantra for winning in the marketplace without fighting the war. Competing strategy differentiation vs low cost leadership which of the factors that the industry takes for granted should be eliminated. Importance of the blue ocean strategy to a business bizfluent. Blue ocean shift is the definitive guide to shift you, your team, and your organization to new heights of confidence, market creation, and growth. The risks of following a blue ocean strategy the adaptive. This 2005 book is aimed at anyone interested in pursuing the authors blue ocean. What is the blue ocean strategy the term blue ocean was coined by two professors w. 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.
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. This international best seller upends traditional thinking with principles. Pdf blue ocean strategy bos is a management concept which prescribes that. When expressed through a value curve, an effective blue ocean strategy has three complementary qualities. Bos is all about minimizing risks due to competition threat and maximizing opportunities by exploring new boundaries. Furthermore the blue ocean strategy was awarded with. In this article, we will look at 1 what is a blue ocean strategy.
One key blue ocean strategy tool used in the formulation and communication of the eleventh malaysia plan was the strategy canvas. But its not always clear how to create a blue ocean strategy for yourself. The book titled blue ocean strategy is not helpful to management dont buy it and if you already have it dump it. Through national blue ocean strategy, over 80 ministries and agencies from the police and military, to women, youth, and higher education organizations are collaborating to formulate and. This study aims to understand how blue ocean strategy can be implemented in. This article uses examples from the real world to discuss the specifics of the blue ocean strategy. Blue ocean strategy is a powerful framework for finding new business opportunities. The value of having a blue ocean strategy is better understood when compared to a red ocean strategy. The concept of blue ocean strategy first took the business world by storm in 2005 when authors w. Now updated with fresh content from the authors, blue ocean strategy argues that cutthroat. 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 cost. How to create uncontested market space and make the competition irrelevant, w. Sep 27, 2012 the blue ocean strategy is the art and science of making the competition irrelevant by creating uncontested market spaces.
The blue ocean strategy explains how to guide your business across seas with less competition and greater profitability. National institute of construction management and research. You can create new market space and grow your business through a reliable and systematic process. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. Complete list of teaching materials update nov 2019. One of the most successful efforts to do so is the book blue ocean strategy, by w. The blue ocean strategy is a business book that has become mandatory for modern managers by proposing an organized structure to identify and implement differentiation in any industry and help you grow your business faster. Know who developed the blue ocean strategy, understand what is a business universe, differentiate between blue ocean and red ocean, describe ways to create blue oceans, understand key terms related to blue ocean strategy, learn the steps to create a blue ocean strategy, list the blue ocean strategy. There are two types of oceans in this world, according to authors w. 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. Chan kim and renee mauborgne to understand the strategic edge it brings, its impact on business education at insead and around the. Sep 24, 2017 in 2005, blue ocean strategy, expanded edition.
Olave pivoted instead to blue ocean strategy, using the theory, tools and process of blue ocean strategy and blue ocean shift to redefine market boundaries. May 27, 2014 for that there is nothing better than something called the blue ocean strategy. Chan kim and renee mauborgne in their bestselling book of the same name. 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. 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. 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. Implementing the blue ocean strategy is, simply put, a gargantuan task. Achievement of 1ms4hw jan to aug 2015 cluster program no. Pdf examining the emergence and evolution of blue ocean. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. Blue ocean strategy is a method of creating business strategy of the enterprise, which was described in a book by w. Explore how blue ocean strategy has been applied around the world to transform the public sector on the local, state, and national levels.
Red ocean markets are large and the rate of product innovation is low. The competition on the market is getting stronger and more difficult to overcome, in many. Blue ocean strategy powerpoint templates present better. Blue ocean strategy case study service nsw 3 1 introduction blue ocean strategy1 has been used extensively to transform the public sector around the world at a local, state and national level. It requires the right research, patience and focus. 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. Reviewing the blue ocean strategy university of twente student.
With the intention of understanding the blue ocean strategy in the field of air transport, the authors show the ryanair as an example, which left the red ocean and takes the opportunity in the new business approach. Kim and mauborgne point out that untapped value is often hidden in complementary products and. 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 impact of blue ocean strategy in lowcost transport. It is about creating and capturing uncontested market space, thereby making the competition irrelevant. Making the internal process company ipf bos in order to optimize the implementation of blue ocean strategy, making the value of the company and the products to be better in the consumers. 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. The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. 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. National blue ocean strategy nbos nbos summit, september 2015. But many companies have done their homework and succeeded thanks to this strategy. Blue ocean studio you can access a free trial here. What is strategy strategy management is a collection of decision and action that produces the formulation and implementation of the plan.