Based on a study of 150 strategic moves, spanning more than 100 years. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. Blue ocean strategy pushes companies to create new industries and break away from the competition. Chan kim and renee mauborgne and is the cornerstone of marketcreating strategy.
The mental models that undermine marketcreating strategies. Pdf blue ocean strategy download full pdf book download. Chan kim and renee mauborgne in the indie business book club. Blue ocean strategy is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. Blue ocean strategy is the most successful book on business masterplanning. Jul 16, 2015 in this article, we will look at 1 what is a blue ocean strategy. It is a roadmap to move you, your team, and your organization to new heights of confidence, market creation and growth. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of strategy and international management at insead. It is based on the view that market boundaries and industry structure are not a given and can be.
Blue ocean strategy, creating new business without competition. He is the coauthor of the 2005 book blue ocean strategy. Blue ocean strategy is where a company creates a completely new market space or market category. How to create uncontested market space and make the competition irrelevant at. In order to create this shift in attention from red oceans to blue oceans the authors came up with a concept called value innovation that allows for a simultaneous pursuit of both differentiation and lowcost. Blue ocean strategy can be applied across sectors or businesses. Jul 31, 2015 value innovation is a process in which a company introduces new technologies or upgrades that are designed to achieve both product differentiation and low costs. This is the cornerstone concept of blue ocean strategy and blue ocean shift international bestselling books by worldrenowned professors w. Blue ocean strategy, value innovation and creating uncontested market space, is an exploration of frameworks and tactics for discovering opportunities. Red oceans are described as all the industries in existence today.
Shifting from marketcompeting to market creating strategy. Sep 03, 2019 yet, the blue ocean metaphor is also misleading, for it suggests that the red versus blue distinction is the main distinct and new contribution of the book. May 21, 2018 this masterclass examines the blue ocean value innovation process, how it works in practice and how it has evolved since the publication of blue ocean strategy 2005 by w. Such strategic moves, which the authors call value innovation, create powerful leaps in value that often render rivals obsolete for more than a decade. The six paths framework in formulating blue ocean strategy. While the idea of competition gives little significance to value and prioritizes profit, blue ocean strategy emphasizes value for the organization as well as the customers. Chan kim and renee mauborgne in their book titled blue ocean strategy. It is about creating and capturing uncontested market space, thereby making the competition irrelevant.
It opens up new possibilities that are not available to organizations operating within the existing cost value structure. 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 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. Blue ocean strategy usually talks about creating a blue ocean for your business and creating barriers for other businesses to imitate. They are the authors of blue ocean strategy, which has sold over 3. 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.
Sep 24, 2017 in 2005, blue ocean strategy, expanded edition. 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. Blue ocean strategy formulation the strategy canvas. In other words, when you go headtohead against rivals for a share of the existing market, this is like competing in a red ocean. The top inspiring quotes from blue ocean strategy you be. A global bestseller and one of the best business strategy books available. Blue ocean strategy is the most successful book on business masterplanning the economist. 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. Chan, mauborgne, renee, mauborgne, renee a download it once and read it on your kindle device, pc, phones or tablets. Creating new market space requires a different pattern of strategic thinking. 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. To break from competition, a organization has to reconstruct the market boundary which is the first and foremost principle in creating blue ocean strategy.
There are six basic approaches to reconstruct market boundaries, also. What makes the creation of blue oceans increasingly imperative. This concept will help the client find a value which is different as well as low cost. Specifically, these new markets give a company a very high competitive advantage as well as low pricecost pressure. If you are new to strategy, you should read a basic book first before coming to this book. The strategy focuses on moving away from an existing market and seaching for new markets. A milestone work that overturns the customary pondering system, this top of the line business book diagrams an intense new way of winning whats to come. Blue ocean strategy and blue ocean shift, created by worldrenowned professors chan kim and renee mauborgne, is a new way of thinking, a movement away from a. Blue ocean strategy with boss business simulation stratx. This can be done by creating more value for buyers enabling the company to open up a whole new uncontested market space, the blue ocean. Value innovation is premised on creating unprecedented value for customers while minimizing costs to the organization. The premise of the book is that companies can succeed by creating. The best way to understand value innovation is to consider value and innovation separately.
Chan kim is a south korean business theorist and professor of strategy and management at insead. This creates a new product offering that doesnt currently. The hardcover of the blue ocean strategy, expanded edition. If a company can identify what consumers currently value and then rethink how to provide that value, differentiation and low cost can both be achieved. Actions framework to reconstruct buyer value elements in crafting a new value curve. Feb 03, 2015 buy blue ocean strategy, expanded edition revised ed. May 30, 2017 t his month, we read blue ocean strategy by w. According to kim and mauborgne, competing in overcrowded industries is no way to sustain. Blue ocean strategy proposes that businesses can have more success by creating a blue ocean, rather than trying to compete in the red ocean. Recognized as one of the most iconic and impactful strategy books ever written, blue ocean strategy argues that cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool.
Rather than competing within the confines of the existing industry or trying to steal customers from rivals bloody or red ocean strategy in the hbr of october 2004 w. What is the blue ocean strategy the term blue ocean was coined by two professors w. Blue oceans, where a market space is new and uncontested, and strategy centers around value innovation. A blue ocean is created when a company achieves value innovation that creates value. Blue ocean strategy is a method of creating business strategy of the enterprise, which was described in a book by w. The blue ocean strategy simulation was designed with extensive input from the authors of the bestselling book blue ocean strategy. He is the codirector of the insead blue ocean strategy institute in fontainebleau, france. But, lets first understand what is blue ocean and how it is different from red ocean strategy. Featured on more than 300 bestseller lists across the globe. Using a value creation compass to discover blue oceans.
The first part presents key concepts of blue ocean strategy, including value innovation the simultaneous. What are some successful examples of blue ocean strategy. In effect, blue ocean strategy involves marketcreating innovation. In the space of 25 days, participants will learn to apply the blue ocean strategy by breaking away from the competition and creating a blue ocean of new market space. Blue ocean strategy is a book published in 2005 and written by w. Mar 16, 2015 today, we tell you something about an interesting chaper in osterwalders book about the blue ocean strategy. In effect, blue ocean strategy involves market creating innovation. They urge companies to value innovation that focuses on utility, price, and. 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.
Adopt blue ocean perspective adopting the blue ocean perspective is not as easy as it seems. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. His book blue ocean strategy, coauthored with renee mauborgne, has sold 3. Blue ocean strategy is a bad book, but it is not your usual bad book. Chan kim and renee mauborgne as explored in their new book their new book blue ocean shift 2017. Because value to buyers comes from the offerings utility minus its price. Three key components of a successful blue ocean shift. Blue ocean strategy pursues value innovation in their analysis of strategic moves over 120 years, the authors found a consistent pattern to successful blue ocean strategies. Another tool in the blue ocean strategy framework is the idea of creating a new value driver for the product or service in question. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. Chan kim and renee mauborgne rank in the top 5 management gurus in the world in the thinkers50 list, a title they have held for ten straight years. The blue ocean strategy argues that consumers dont have to choose between value and affordability. Jul 28, 2018 blue ocean strategy provides a systematic approach to break out of the red ocean of severe competition and make the competition irrelevant by reconstructing market boundaries to create a leap in value for both the company and its buyers.
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. Where red ocean strategy is a zerosum game that is all about splitting up the pie between rivals, blue ocean strategy is about creating the pie andor enlarging it. The seminal book blue ocean strategy has sold over 4 million copies globally and is in print in 46 languages. Blue ocean strategy is a great exploration of frameworks and tactics for discovering opportunities to create blue ocean value innovations. Value innovation is the simultaneous pursuit of differentiation and low cost, creating a leap in value for both buyers and the company. 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. The top 15 strategic management books startup grind. Thinkers50 strategy award for best business book of the decade.
In short, you create a blue ocean by focusing on the factors that customers really care about, while discarding factors they dont. 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. Complete list of teaching materials update nov 2019. Pdf using a value creation compass to discover blue oceans. A instead of competing in existing industries, blue ocean strategy equips companies with frameworks and analytic tools to create their own blue ocean of. Everyone who has read the book blue ocean strategy by w. 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. In the first of its three parts, blue ocean strategy explains what the authors mean by blue oceans as opposed to the red oceans of existing competitive markets. Blue ocean strategy page 1 main idea the best way to beat your competition is, in fact, to stop competing against them. Sloane award for excellence in management consulting. The book combines theory with practical tools and case studies that allow the reader to explore the myriad ways of creating value for customers.
Chan kim, of blue ocean strategy, expanded edition 2015. 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. Chan kim and renee mauborgne, develops and explains how to beat the competition by reaching beyond it into new unexplored markets. Blue ocean strategy is a marketing theory in which a business enters a market that has little or no competition. The book presents analytical frameworks and tools to foster an organizations ability to systematically create and capture blue oceansunexplored new market. All of this makes it ever more difficult to compete in the same space against amazon.
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. How to create uncontested market space and the make. Furthermore the blue ocean strategy was awarded with. Chan kim and renee mauborgne rank in the top 5 management gurus in the world in the thinkers50 list, a. But only time would prove whether or not they had created a new way to look at strategy or simply repackaged existing techniques and processes. By creating your own blue ocean strategy you increase your chances of success in this space. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. The latest revised version of the book was published in 2015. Value innovation and how to successfully incubate blue ocean. Nintendo also value innovated by moving into adjacent markets. How to create uncontested market space and make the competition irrelevant by w. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute.
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. However if you go the traditional route which is to try to find a market that is filled with competition, the likelihood of you surviving is minimal, red ocean. An introduction to blue ocean strategy mba knowledge base. 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. On blue ocean strategy by kim and mauborgne the business model canvas is a perfect extension of the analytical tools presented by kim and mauborgne. The cornerstone of the blue ocean strategy is value innovation. The cornerstone of blue ocean strategy is value innovation. It provides examples of businesses that have created and entered new markets through value innovation. It is about creating and capturing uncontested market space, thereby making the. Stepping back, nintendo again used blue ocean strategy to value innovate the nintendo switch, the only console to outpace the wii in sales.
He provides managers and consultants with a structured practice for value creation. Everyday low prices and free delivery on eligible orders. Rather than concentrating on beating the competitors, the company must actually prioritize on making the competition irrelevant. 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. The authors use the metaphor of the blue ocean as a direct contrast to red oceans.
Value innovation strategy canvas four actions framework six paths. 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. How to create uncontested market space and make competition irrelevant, is a market space that is undeveloped, and untapped by competitors. What is blue ocean strategy about blue ocean strategy. How to create a blue ocean strategy for healthcare with. The central tenet of the blue ocean strategy is to create. Blue ocean strategy is all about finding the right market and taking it, blue ocean. In red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. In the prior book the tools were described, but this book follow up with instructions on sequencing and use. Of course, its not that companies dont recognize the value of new market spaces. In the decade since the publication of the first edition of our book, blue ocean. The sequel to blue ocean strategy, blue ocean shift outlines a methodology to identify blue ocean opportunities.