Pros and cons of blue ocean strategy essay sample blue ocean strategy makes the competition irrelevant by creating a new market space where there is no competitions. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. 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. Theyve progressed every year since to 15th in 2005. Jan 27, 2014 sustainability and renewal of blue ocean strategy sustainability can be traced to the following imitation barriers. The first part presents key concepts of blue ocean strategy, including value innovation the simultaneous pursuit of differentiation and low cost and key analytical tools and frameworks such as the strategy canvas and the four actions framework. Ocean shift is the essential follow up to blue ocean strategy, the.
Monopoly strategy is also called blue ocean strategy where the objective is the decisions leading to competition less environment on their products or services 45. How to create uncontested market space and the make competition irrelevant 2005. Based on 15 years of research, the authors used 150 successful strategic moves spanning 120 years of business history and across 30 industries to bring the blue. The seminal book blue ocean strategy has sold over 3. Blue ocean shift is the essential follow up to blue ocean strategy, the classic. Chan kim and renee mauborgne 2006 blue ocean strategy has been described as a must read for all business students. Achieved via the delivery of features that have a highest marginal benefit to customer needs. 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 blue oceans. Chan kim and renee mauborgne in their book blue ocean strategy. Creating blue ocean drivers for blue ocean what is blue ocean untapped market space demand creation opportunity for high profitability, higher growth competition is irrelevant accelerated technological advances.
Comparative of red ocean and blue ocean the first highlighted case from the blue ocean strategy book is the cirque du soleil. 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. One of the first shows was titled we reinvent the circus. It is used to plot how the current competitors compete in a market space, what factors they compete on and how your company and the competition scores on each key factor.
This blog article is a overview of some of the key points of the book by w. He is known as coauthor of the 2005 book blue ocean strategy. In studying more than 150 blue ocean creations in over 30 industries, the authors observed that the traditional units of strategic analysiscompany and industryare of limited use in. Blue ocean strategy is the most successful book on business masterplanning 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. His book blue ocean strategy, coauthored with renee mauborgne, has sold 3. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Chan kim, 9781633692749, available at book depository with. There are many pros and cons of this strategy the main and considerable advantage of this strategy is the first mover benefit in terms of market penetration where the companies. 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. In this article you will learn how to make your competition irrelevant and have sales and profit.
The book the origin of the terms red and blue oceans comes from blue ocean strategy how to create uncontested market space and make the competition irrelevant. Chan kim, 9781625274496, available at book depository with free delivery worldwide. The strategy canvas provides a highly visual tool to help look at future options. Chan kim and renee mauborgnes blue ocean strategy by andreas mebert, 9781912128426, available at book depository with free delivery worldwide. Blue ocean strategy, expanded edition book depository. The on the blue ocean strategy essay 1969 words 8 pages. Oct 08, 2015 in part three, the authors discuss their idea about strategy execution that is derived by trust and commitment among all involved people to execute the agreedon strategy. How to create uncontested market space and make the competition irrelevant book online at best prices in india on. Blue ocean shift by w chan kim, 9781478940784, available at book. Includes the article that first introduced the idea of a blue ocean strategy leading to an international bestselling book. After reading you will understand the basics of this powerful strategy tool what is the blue ocean strategy. Buy blue ocean strategy, expanded edition revised ed. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant.
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. Blue ocean strategy formulation the strategy canvas. Includes the article that first introduced the idea of a blue ocean strategyleading to an international bestselling book. Blue ocean strategy is a strategy to create new opportunities where the rules over pricing, technology and disruption have not been set. The fundamental premise of the blue ocean strategy is that as opposed to continuing to compete in the red ocean, you should try to find new space in which to sell your goods and services. Chan kim, 9781633692749, available at book depository with free delivery worldwide. It is about creating and capturing uncontested market space, thereby making the competition irrelevant. Essay about blue ocean strategy 825 words bartleby. What is blue ocean strategy about blue ocean strategy. Value innovation is a new way of thinking about and executing strategy that results in the creation of a blue ocean. 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. The premise of the book is that companies can succeed by creating. Blue ocean strategy is a book published in 2005 and written by w. Traditional pricing strategies begin with assessing the cost to produce a specific product, and then marking it up from there to set the price and make a profit on the sale of each unit.
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. All in all, blue ocean strategy is a book worth reading. They are the authors of blue ocean strategy, which has sold over 3. Value innovation value innovation is created in the region where a companys actions favorably affect both its cost structure and its value proposition to buyers.
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 join the free indie business book club, click here. 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 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. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. Jun 21, 2007 blue ocean strategy red ocean strategy 2. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. This book brings the best of those articles together all in one place. Based on a study of 150 strategic moves spanning more than 100 years. They urge companies to value innovation that focuses on utility, price, and cost positions, to create and capture new demand and to focus on the big picture. However i believe developing new to the world services come with high risk and expenses but if done correctly can be very profitable.
We love to know how blue ocean strategy, blue ocean shift, and blue ocean leadership is applied around the world by other people and we monitor for blue ocean mentions so we will know if you do not abide by our rules. Value innovation strategy competes in an uncontested market space. Presented by group 12b chiranjib saha daniel kunzler meghna verma sharvin bhatt vikas singh 2. How to create uncontested market space and make competition irrelevant, is a market space that is undeveloped, and untapped by competitors. The key idea of the book is to avoid entering a highly competitive industry a red ocean. Chan kim and renee mauborgne, published by harvard business school press, boston, massachusetts, 2005, isbn 97815996192. It is being published in a recordbreaking 44 languages and is a bestseller across five. Blue ocean strategy can be found on amazon blue ocean strategy. It empowers organizations by providing a set of analytical tools and frameworks that any company can apply to reshape industry boundaries in their favor and leave the competition behind. This blog article takes a look at what kind of roi some companies have achieved by implementing a blue.
Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. Red oceans, the current state of hotly contested industries are a constant battlefield of lowering cost structures, comoditisation of products and services and increasing competition. You may or may not agree with the central philosophy, but you will be inspired. Blue ocean strategy globalization, entrepreneurship and. Blue ocean strategy is a systematic approach to finding innovative, cost efficient, value adding, productmarket matches. Chan kim and renee mauborgne of the blue ocean strategy institute and professors at frances insead business school and cofounders of the value innovation. How ikea created a new market by andreas forster, 9783668154117, available at book depository with free delivery. Blue ocean strategy proposes that businesses can have more success by creating a blue ocean, rather than trying to compete in the red ocean. Blue ocean strategy is a bad book, but it is not your usual bad book. Everyday low prices and free delivery on eligible orders. The process sounds very much like how bos is used every day in the business world because not surprisingly, people in practically any industry ask similar questions.
As many of you know, blue ocean strategy is a bestselling business strategy book by w. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of. Value innovation value innovation places equal emphasis on value and innovation. 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 workshop at disted hospitality campus this short article examines the many ways blue ocean strategy bos can be used to create a better educational system. May 30, 2017 and speaking of pricing, the authors of blue ocean strategy suggest pursuing a type of pricing strategy that is different from what we are used to. Chan kim and renee mauborgne in the indie business book club. 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. 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. Chan kim, 9781633692879, available at book depository with free delivery worldwide. In a blue ocean because of the uniqueness of your offering you are able to service your customers in uncontested at least for now space.
An introduction to blue ocean strategy mba knowledge base. How to create uncontested market space and make the competition irrelevant by w. Chan, 97815996192, available at book depository with free delivery worldwide. You cannot copy in full or in part any of our full text content and our original ed images without our prior consent. Blue ocean strategy including examples and pdf download. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. The creation of blue oceans is about driving costs down while simultaneously driving value up for buyers.
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. Value imitation does not make sense based on conventional strategic logic blue ocean strategy conflicts with the brand image natural monopoly. The blue ocean strategy bos is the strategic organizational approach that is based on the principle that companies should not engage in a competitive struggle but that. A landmark work that upends traditional thinking about strategy, this book charts a bold new path to winning the future. It is being published in a recordbreaking 44 languages and is a w. Pros and cons of blue ocean strategy essay example. 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. How to create uncontested market space and make the competition irrelevant.