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 space that is filled. Chan kim and renee mauborgne, professors at insead. Whichever is chosen the organization must align all activities with one of these strategic directions. Chan kim and renee mauborgne in the indie business book club. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Blue ocean strategy blue ocean strategy introduction blue ocean strategy is a marketing book by w. Blue ocean strategy including examples and pdf download. Chan kim and renee maugorgne, the authors of blue ocean strategy, one of the most popular business books in recent memory, argue that companies succeed not by battling competitors, but rather by creating blue oceans of uncontested market space.
The mckinsey way using the techniques of the worlds top strategic consultants to help you and your business by ethan m. The book starts with a description of the product, actifry, where group seb escapes the price war in the red ocean of traditional fryers pg. A red ocean strategy ultimately leads to an organization choosing to follow one of two strategies differentiation or low cost. Tidak heran pada red ocean strategy akan timbul persaingan yang tidak sehat, saling menjatuhkan dan berusaha mengahabisi setiap pesaingnya. Conner, managing at the speed of change above books are written by globally recognized and widely acknowledged grandmasters in the field. Oct 18, 2012 great white shark encounter off lorne.
Ocean vuong ocean vuong is the new york times bestselling author of the critically acclaimed poetry collection night sky with exit wounds, winner of the whiting award and the t. Chan kim and renee maubourgne published a book, blue ocean strategy. Origin of the terms professors chan kim and renee mauborgne introduced the concepts of red and blue oceans in their international bestseller blue ocean strategy. Jul 03, 2018 from sea to shining seathe ocean is full of an array of diverse and beautiful animals. We blend nontraditional and conventional consulting processes to drive topline growth through new product, service and business model innovation, business strategy for disruptive innovation, leadership development and organizational culture change. Search the worlds most comprehensive index of fulltext books. In other words, it operates using a continuous stream of thematic ricochets that compound as the vignettes increase. Value innovation strategy competes in an uncontested market space. A global bestseller and one of the best business strategy books available, blue ocean strategy challenges everything you thought you knew about strategic. May 27, 2014 for that there is nothing better than something called the blue ocean strategy. The book mostly borrows from a range of over 140 strategic marketing moves within a period of over a century. This blog article is a overview of some of the key points of the book by w. Various types of strategies are used in strategic management such as red ocean strategy, blue ocean strategy, green ocean strategy, purple ocean strategy and black ocean strategy. The book offers a fivestep process for systematically reproducing such strategic triumphs, and shows how a blue ocean initiative can be.
They assert that these strategic moves create a leap in value for the company, its buyers, and. Examining the emergence and evolution of blue ocean strategy. This allows you to understand where the competition is currently investing, the factors the industry currently competes on in products, service, and delivery, and what. 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. The role of human resources in blue ocean strategy in this short article, i intend to address the role of corporate human resources, both at the managerial and expert levels, in the attitudinal and behavioral challenges of individuals, as well as in their involvement and involvement by senior management in the process of formulating and. Jan 07, 2011 the strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. The concept of ideal strategy and its realization using white ocean. What is blue ocean strategy about blue ocean strategy. Mozart has the classic purity of light and the blue ocean. Blue ocean pedagogical materials, used in over 2,800 universities and in almost every country in the world, go beyond the standard casebased method. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking away from the competition. Based on a study of 150 strategic moves spanning more than 100 years. 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. To understand red ocean strategy let us begin by defining 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. The concept of ideal strategy and its realization using. First published in 2005, it was updated and expanded with fresh content in 2015. A strategy is a longterm plan for the whole organisation or for an individual to ensure. A blue ocean strategy the first question the value curves answer is whether a business deserves to be a winner. They are the authors of blue ocean strategy, which is recognized as one of the most iconic and impactful strategy books ever written. We discuss the connection between strategy and business model and argue that both notions can be clearly separated. The concept of ideal strategy and its realization using white. A powerful paradigm for sustainable success in a world where everyone can finally be a winner.
The strategy canvas provides a highly visual tool to help look at future options. Blue ocean strategy versus red ocean strategy duration. Inside business 360,united states if you are still wondering whether to pick up a copy of blue ocean strategy, we. This strategy places the emphasis on every aspect of society in harmony with the surrounding business, social and natural environment. Blue ocean strategy combined with the business model canvas. From sea to shining seathe ocean is full of an array of diverse and beautiful animals. 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.
Red oceans, blue oceans, and your blog there are two types of oceans in this world, according to authors w. Danai chanchaochai, when i read the text of this inspirational and enlightened book i was reminded that it is indeed possible to be not only be entrepreneurial but also true to our inner beliefs. Blue ocean strategy is a book published in 2005 and written by w. Intelligent readers dont need help figuring that out. His writings have also been featured in the atlantic, harpers, the nation, new republic, the new yorker, and the new york times. The blue ocean strategy tagline for yellow tail might be a fun, simple wine that can be enjoyed everyday. The basic strategy questions, swot analysis, porters 5 forces of competition, burgelmans strategy dynamics model, porters value chain, core competencies and resourcebased view, nonaka and takeuchis knowledge spiral, mckinseys 7s framework, scenario planning, ansoffs growth grid, bcgs product portfolio matrix, kim and mauborgnes blue. Ride the crest of the new wave in business leadership. Oct 01, 2019 this strategy is incredibly difficult to pull off as it demands charged and complicated emotive renderings to carry into white space without thorough bridges and narrative connections. I can now incorporate the blue ocean strategy and shift in my process.
It captures the current state of play in the known market space. 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. Born in saigon, vietnam, he currently lives in northampton. In short you need to create your own blue ocean strategy. Even though, recently, white ocean has emerged in world business strategy. Blue ocean strategy can be found on amazon blue ocean strategy. How to create uncontested market space and make competition irrelevant, is a market space that is undeveloped, and untapped by competitors. Blue ocean strategy, outlines the processes of removing the fight for competitive advantage and the battle for differentiation typical of many corporate strategies. Larry bossidy and rob charan, the discipline of getting things done. Section v revisits the generic twostage competitive process framework to integrate the three notions. Jul, 2018 for struggling businesses, mauborgne recommended the strategy canvas, which is featured in her and kims newest book, blue ocean shift.
Top 20 of best consulting books recommended most times. 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. Kaplan and norton, the strategy focused organization. All in all, blue ocean strategy is a book worth reading. Prahalad and hamel introduced the notion of white space which refers to the. This blue ocean strategy and shift addresses exactly where i am. It is a roadmap to move you, your team, and your organization to new heights of confidence, market creation and growth. Essay on blue ocean strategy a marketing book 1053. The concept of ideal strategy and its realization using white ocean mixed strategy aithal, sreeramana 2016. Introduction strategic planning and decision making are important in organizations using business. Download citation blue ocean strategy despite a longterm decline in the. 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. As a followup to blue ocean strategy, which sold 3.
The book succeeds in showing how businesses, can outdo their competitors. I love when i listen to the little voice and the result is a lifechanging nugget. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was. But then, with more customers and higher profits, there will be new competitors jumping into the market white ocean strategy a powerful paradigm for sustainable success in a world where everyone can finally be a winner. Popsugar williams, willig, and white the forgotten room, 2016 work together again to create a riveting histoical mystery. Beethoven the romantic grandeur which belongs to the storms of air and sea, and while the soul of mozart seems to dwell on the ethereal peaks of olympus, that of beethoven climbs shuddering the stormbeaten sides of a sinai. Yellow tail wines blue ocean strategy example shortform blog. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. White ocean strategy has been selected as a supplementary book or integrated into management curricula in leading universities. The concept of ideal strategy and its realization using white ocean mixed strategy.
A good example of red ocean strategy is the european airline operator ryanair or southwest if you like in the. You may or may not agree with the central philosophy, but you will be inspired. We have studied the reasons why certain firms opt for white ocean strategy while making decisions for sustainability and consequences of such strategic. Blue ocean strategy blue ocean strategy is a business strategy book published in 2005 by harvard business school publishing corporation in united state of america, it was written by w. It includes 30 years of experience from the authors on how to apply the blue ocean strategy framework, and fulfill a successful blue ocean shift.
In this article you will learn how to make your competition irrelevant and have sales and profit. Introduction blue ocean strategy evolves to red ocean. Ideal strategy, red ocean strategy, blue ocean strategy, black ocean strategy, white ocean strategy, comparison of different strategies, characteristics of white ocean strategy. From the writing team that brought you the forgotten room comes another mustread collaboration. White ocean strategy, comparison of different strategies, characteristics of white ocean strategy. When a companys value curve, or its competitors, meets the three criteria that define a good blue ocean strategyfocus, divergence, and a compelling tagline that speaks to the marketthe company is on the right track. Blue ocean strategy suggests that an organization should create new demand in an uncontested market space, or a blue ocean, rather than compete headtohead with other suppliers in an existing industry that is called red ocean. Chan kim and renee mauborgne, the writers of the 2005 book blue ocean strategy. In section iv, we move on to discussing the first stage, the strategy stage. Knowledge is power companies need to go beyond competing. Sarah layton, cmc, ceo and managing partner of corporate strategy institute, is a certified management consultant and motivational speaker. The original bos book from 2005 kim and mauborgne 2005b has become a. 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.
The global phenomenon, embraced by business worldwide and. 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 is a bad book, but it is not your usual bad book. Blue ocean strategy bos is a management concept which.
This independence day, we cant help but see the rainbow of colors in the ocean and realize that the seas are swimming with the red, the white and the blue. And you need to avoid competing head to head in every possible way. See comparison between red and blue ocean strategies here in one simple table. Strategic planning and decision making have an important role in organizational development and sustainability. 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 business strategy book, first published on february 3, 2005 by the harvard business school press. To join the free indie business book club, click here. 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. 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. Blue ocean strategy is the most successful book on business master. Innovationpoint is a boutique innovation consulting firm focused on the practice of strategic innovation. International journal of management sciences and business research ijmsbr, vol. Blue ocean strategy is where a company creates a completely new market space or market category.
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