5 elements of blue ocean strategy book pdf

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. Achieved via the delivery of features that have a highest marginal benefit to customer needs. The strategy canvas provides a highly visual tool to help look at future options. Chan kim and renee mauborgne, the writers of the 2005 book blue ocean strategy. Water adopts the shape of its receptacle, it is sometimes a trickle and sometimes a wild sea. 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. Chan kim and renee mauborgne in their bestselling book of the same name. Management can and should be visionary in formulating strategy. Jun 21, 2007 blue ocean strategy red ocean strategy 2. 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, 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. They are the authors of the international bestselling book blue ocean strategy which is recognized as one of the most iconic and impactful strategy books ever written, and the. 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. Instead of brutally battling your competitors, this breathtakingly refreshing book argues that the best strategy is to carve out a new blue ocean where you can shine without raining on anyone elses success. Value innovation is a new way of thinking about and executing strategy that results in the creation of a blue ocean. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. 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. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. Public sector application and research, including the application of blue ocean shift, blue ocean strategy, and blue ocean leadership to governments and nonprofits. Beyond competing proven steps to inspire confidence and seize new growth. Blue ocean strategy formulation the four principles of. Chan kim and renee mauborgne certainly do not feel like it has to be that way.

Chan kim and renee mauborgne have created a comprehensive set of analytic tools and frameworks to create blue oceans of new market space. The six paths framework in formulating blue ocean strategy are 1 look across alternative industries, 2 look across strategic groups within industry, 3look across buyer groups, 4 look across complementary product and service offerings, 5 look across the functionalemotional orientation of an industry and 5 look across time to shape trends. The first principle of blue ocean strategy is to reconstruct market boundaries to break from the competition and create blue oceans. Chan kim and renee mauborgne, professors at insead. Chan kim and renee mauborgne, are both prominent professors at insead in fontainebleau, france. Sep 26, 2016 the strategy canvas provides a highly visual tool to help look at future options. Blue ocean strategies summary blue ocean strategies a. But, contrary to the approach of ocean strategy, should do so by thinking about market environment shifts, how these could impact customer sets, and whether. Im glad i didnt settle for watching a youtube video about what the blue ocean strategy is and instead delved into this book which was packed with practical advice.

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. The premise of the book is that companies can succeed by creating. It is being published in a recordbreaking 44 languages and is a bestseller across five continents. View notes blue ocean strategies summary from mgmt 430 at university of washington. In this article you will learn the plan they outline for how to make your competition irrelevant and have sales and profit growth in excess of anything you thought was even possible. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. Blue ocean strategy is referred to a market for a product where there is no competition or very less competition.

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. Mar 03, 2019 this strategy challenges conventional thought but isnt some random idea. By examining the success elements of 150 companies in over 30 industries, founders of the blue ocean concept realized patterns of strategic thinking in the creation of new market spaces which was the basis for the blue ocean strategy. Blue ocean strategy chapter 14 the four action framework chapter two. Each industry underwent continuous upheaval, each time spurred by a blue ocean strategy that 1 reduced factors unimportant to buyers, 2 increased factors important to buyers, 3 expanded the market. May 30, 2017 to join the free indie business book club, click here. While this came in appendix a in the book, this is a good time to cover three industries with repeated blue ocean creation. 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. Some strategic planning models are based on theories that dont quite pan out during gotomarket executions. To join the free indie business book club, click here. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Pdf harvard business school press 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.

How to create uncontested market space and make the competition irrelevant pdf by w. Blue ocean strategy case study service nsw 5 at the end of 2012 there were an estimated 380 nsw government shopfronts, 100 call centres, 8,000 phone numbers and 900 web sites that customers needed to select from and navigate through if they needed to transact with the nsw government. 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. For that there is nothing better than something called the blue ocean strategy. The structure can be created or recreated by the steps taken by players in the market. All in all, blue ocean strategy is a book worth reading.

I wish i could say my own pursuit of enlightenment led me to chan kim and renee mauborgnes masterpiece on embracing and leveraging difference. The book titled blue ocean strategy is not helpful to management dont buy it and if you already have it dump it. Value innovation strategy competes in an uncontested market space. It is being published in a recordbreaking 44 languages and is a w. There are case studies, larger analysis, etc that culminated on this rigorous and interesting book. Top 5 strategy development tools free ebook in pdf format.

A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. Red oceans, blue oceans, and your blog there are two types of oceans in this world, according to authors w. Using bos to create new market space in sustainability. Blue ocean strategy is a book published in 2005 and written by w. These include corporate strategy, business strategy, and functional strategy in section 1. Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group. The three key components of a successful blue ocean shift.

Blue ocean strategy is a bad book, but it is not your usual bad book. 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. Maximizes opportunityminimizes risk mitigates risk increases odds of success 7. This blog article is a overview of some of the key points of the book by w. What is distinctive about blue ocean strategy as a theory. Blue ocean strategy is a business strategy book, first published on february 3, 2005 by the harvard business school press. Tru group inc blue ocean strategy belongs in the dead sea. How to create uncontested market space and make competition irrelevant, is a market space that is undeveloped, and untapped by competitors. 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. Blue ocean strategy can be found on amazon blue ocean strategy.

Sep 24, 2017 now, 12 years later, the authors offer an exciting new book that synthesizes their experience in assisting with the implementation of blue ocean strategy. Based on a study of 150 strategic moves spanning more than 100 years. Blue ocean strategy including examples and pdf download. Companies should instead look for new market space and ways to reinvent the industry. Value innovation value innovation places equal emphasis on value and innovation. 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. Motivation desire for challenge six principals of blue ocean strategy. How is blue ocean strategy different from a classic differentiation strategy. Blue ocean strategies a summary blue ocean strategy is a business strategy book first published in 2005 and. Jul, 2018 for struggling businesses, mauborgne recommended the strategy canvas, which is featured in her and kims newest book, blue ocean shift.

With water as the basis, the spirit becomes like water. 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. Blue ocean strategies a summary blue ocean strategy is. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. 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. What is distinctive about blue ocean strategy as a. Provides stepbystep process provides a stepped process for implementation gives management an alternative to traditional strategies 6.

This strategy challenges conventional thought but isnt some random idea. 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. Blue ocean strategy and sustainability for strategic. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. Strategy and thinking is not limited by preconceived barriers, and a shift happens from a focus on the supply side to a focus on the demand. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of. Everyday low prices and free delivery on eligible orders. Blue ocean strategy is a systematic approach to finding innovative, cost efficient, value adding, productmarket matches. Eight key points of blue ocean strategy heres the essence of blue ocean strategy captured in eight key points.

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. By the clarity, things of ichi school are shown in this book. 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. In contrast, blue ocean strategy originated from a study that took place over 10 years and analyzed company successes and failures in more than 30 industries. The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. Pdf blue ocean strategy download full pdf book download. Engagement trust bulit relationship togetherness and enthusiasm. The creation of blue oceans is about driving costs down while simultaneously driving value up for buyers. Social sector application and research, including such topics as how blue ocean strategy can be applied in the developing world to mitigate poverty and improve education and health.

Chan kim and renee mauborgne in the indie business book club. The six paths framework in formulating blue ocean strategy. You may or may not agree with the central philosophy, but you will be inspired. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. Now, 12 years later, the authors offer an exciting new book that synthesizes their experience in assisting with the implementation of blue ocean strategy. The seminal book blue ocean strategy has sold over 3.