This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. Pdf blue ocean strategy as a tool for improving a companys. It calls for profiles for leaders that are tailored to the very different. Marketing management articles the blue ocean strategy represents a theory concerning the business strategy created by two professors namely w. The strategy focuses on moving away from an existing market and seaching for new markets. You can read blue ocean strategy if you want to learn how the authors suggest you do it, but there is a. Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. Second, we investigate if means suggested by authors to create a blue ocean are applicable in emerging markets. Boswell blue ocean strategy paper there has been a lot of discussion and consideration when it comes to the red or blue ocean approach to marketing strategies for businesses both already established and newly founded. Request pdf an innovative model of blue ocean strategy and niche marketing in green industry. Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking away from the competition. 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.
This paper first critically analyzes the conjectures presented in the book. To join the free indie business book club, click here. It views longterm competition as the main concern that business people should be. What is blue ocean strategy about blue ocean strategy. Blue oceans denote all the industries not in existence todaythe unknown market space, untainted by com petition. Chan kim and renee mauborgne have created a comprehensive set of analytic tools and frameworks to create blue oceans of new market space. Saat kita berhasil menciptakan ruang pasar baru maka persaingan menjadi tidak lagi relevan yang. Today, the blue ocean portfolio consists of 23 properties valued at. Mar 12, 2014 applying blue ocean strategy to digital marketing how to create an uncontested market place by repositioning your brand in the digital world a number of well recognised brands have disappeared over the. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking.
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. Blue ocean leadership is designed to be applied across the three distinct management levels. How to create uncontested market space and make the competition irrelevant, a book by professors w. Pdf on apr 1, 2012, ibrahim rawabdeh published blue ocean strategy as a tool for improving a companys marketing function. Blue ocean strategy powerpoint template is a professional and modern presentation for the description or explanation of the blue ocean strategy theory. In short, the authors are rather vague about the research project which was the basis of the new management innovation strategies they are marketing in this book. Blue ocean strategy is a marketing theory in which a business enters a market that has little or no competition. Blue ocean strategy case study service nsw 2 foreword service nsw is an important initiative in the delivery of an improved customer experience for the citizens and businesses of new south wales. Offering marketing freelancing and consultancy services particularly aimed at smes. Jan 06, 2016 in their 2005 bestselling book blue ocean strategy w.
Library of congress cataloginginpublication data kim, w. Now, to bring it to life, were looking at 3 examples of companies that have used the blue ocean strategy framework to. Green ocean strategy using the analogy of beach and ocean, before one reaches the blue part of the ocean, there is the green. Blue ocean strategy is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext.
Essay on blue ocean strategy a marketing book 1053 words. Property management company in baltimore md blue ocean. 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. Sep 24, 2017 in 2005, blue ocean strategy, expanded edition. Blue ocean businesses create new markets, new demand, and often give the business insulation against competition. Tomorrows leading companies will succeed not by battling competitors, but by creating blue oceans of uncontested market space ripe for growth. Essay about blue ocean strategy 825 words bartleby. So it makes more sense that if a business can stay within the green ocean, where the water is clearer and nearer the shore, then this would be less risky, more practical, and eminently more desirable. It requires the right research, patience and focus. Blue ocean strategy is a consistent pattern of strategic thinking behind the creation of new markets and industries where demand is created rather than fought for. Blue ocean shift is the essential followup to blue ocean strategy, the classic 3.
Companies pursue blue ocean strategies to make competition irrelevant. They are the authors of blue ocean strategy, which has sold over 3. In our last blog post, we explored the fundamentals of blue ocean strategy. The premise of the book is that companies can succeed by creating. It is about creating and capturing uncontested market space, thereby making the competition irrelevant. Blue ocean strategy including examples and pdf download. Jcdecaux, a vendor of french outdoor advertising space, created a blue ocean in the advertising industry. Finding a business without competitors in a blue ocean market is a key to huge growth. Understanding blue ocen strategy and its antithesis, red ocen strategy helps you to organize your thinking and plan towards new venture whether establishing a new business or coming up with a new product line. Download blue ocean strategy pdf including examples. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. Applying blue ocean strategy to digital marketing smart. Chan kim and renee mauborgne in their bestselling book of the same name.
These strategies include blue ocean strategy along with the red ocean strategy. Porters five forces is a very competitive marketing strategy. Jcdecaux advertising industry case study blue ocean. Consider how pret a manger, a british fast food chain that opened in 1986, has expanded its blue ocean by tapping into the huge latent demand of firsttier noncustomers. Blue ocean strategy, one of the best seller books has received tremendous attention amongst scholars and practitioners. Before pret, professionals in european city centers principally.
Chan kim and renee mauborgne 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. 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 book succeeds in showing how businesses, can outdo their competitors. Profitworks is a company built on the values of integrity, hard work, doing things better than they have ever.
Very informative video for businessmen and marketers. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Chan kim and renee mauborgne, published by harvard business school press, boston, massachusetts, 2005, isbn 97815996192. Pdf blue ocean strategy how to create uncontested market. 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. Pdf blue ocean marketinga promising strategy researchgate. By creating this plot, you can find imbalances in your strategy, such as only raising and creating which leads to overengineering and trying to be the best or only eliminating and reducing which leads to mere price competition.
Companies should instead look for new market space and ways to reinvent the industry. Value innovation strategy competes in an uncontested market space. Blue ocean strategy paper xxxxxxxx mkt 421102014 mr. Based on a study of 150 strategic moves spanning more than a hundred years and thirty industries, authors w. The blue ocean strategy is one of the latest business ideas in the world. How to create uncontested market space and make the. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Click the link above to read the key concepts and everything you want to know about the blue ocean strategy. This templates provides iconography and diagrams to work with the blue ocean strategy tools. Chan kim and renee mauborgne derive a novel business strategy and tools based on data from over 30 industries spanning more than 100 years. Yet locked within these firsttier noncustomers is an ocean of untapped demand waiting to be released. Blue ocean strategy is a method of creating business strategy of the enterprise, which was described in a book by w. It is based on the view that market boundaries and industry structure are not a given and can be. 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.
Blue ocean strategy is a book published in 2005 and written by w. Chan kim and renee mauborgne was released in 2005, the market, rightfully so, was abuzz with the simple revelations the book put forth. Blue ocean strategy is a new way of thinking, a new strategic mindset, a bold new path to winning the future. To make your life easier, you can download these free templates that have been made especially for blue ocean. Philip kotler read blue ocean strategy for marketing. Blue ocean strategy blue ocean strategy introduction blue ocean strategy is a marketing book by w. Blue ocean strategy is referred to a market for a product where there is no competition or very less competition. Free blue ocean strategy powerpoint templates now that youve done the hard work of identifying your blue ocean strategy, its time to present it to top management. Chan kim and renee mauborgne in the indie business book club. 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. Blue ocean strategy is a strategy that differs significantly from most business strategies. Blue ocean strategy powerpoint template slidemodel.
May 30, 2017 to join the free indie business book club, click here. 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 is active in a variety of sectors within the real estate industry including multifamily, office, retail, industrial, hospitality, and selfstorage. Blue ocean is a slang term for the uncontested market space for an unknown industry or innovation. 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. Even though it was created recently, it immediately gained recognition among experts, and presidents and directors of many companies. 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. 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. Each tool has a slide for the description and application within the strategy analysis. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. Drawing on more than a decade of new work, kim and mauborgne show you how to move beyond competing, inspire.
A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. If burberry were to pursue a blue ocean strategy, which of these strategies might it consider. Blue ocean strategy ppt slides linkedin slideshare. A good blue ocean strategy has items in each of the four grids. Blue ocean strategy can be applied across sectors or businesses. This blog article is a overview of some of the key points of the book by w. Chan kim and renee mauborgne in their book blue ocean. Jun 25, 2018 blue ocean strategy is a simple framework to create a new market and make your competitors irrelevant. A case study of the smart led industry using a developer in the led corporate market as a research. 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. The key is understanding how to create a blue ocean market. Chan kim and renee mauborgne, professors at insead.
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. 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. It used insight from noncustomers to challenge the implicit assumptions of the industry and pulled the mass of once refusing noncustomers into its market before jcdecaux created a new concept in outdoor advertising called street furniture, the outdoor advertising industry. Four actions framework blue ocean strategy shortform blog. The book mostly borrows from a range of over 140 strategic marketing moves within a period of over a century. In this article you will learn how to make your competition irrelevant and have sales and profit. Reduce the companys reliance on low cost labor for manufacturing apparel in india d. Public sector application and research, including the application of blue ocean shift, blue ocean strategy, and blue ocean leadership to governments and nonprofits. Pdf on jun 17, 2014, krishnan umachandran and others published marketing blue ocean strategy find, read and cite all the research you need on researchgate. 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.
Written by the business worlds new gurus, blue ocean strategy continues to challenge everything you thought you knew about competing in todays crowded market place. The database and research have continued to expand. I was pleased to be a part of a committed team in 2012 bringing service nsw to life, tasked with. 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. May 02, 2018 blue ocean strategy creating a niche of your own may 2, 2018 by hitesh bhasin tagged with. The structure can be created or recreated by the steps taken by players in the market. Specifically, these new markets give a company a very high competitive advantage as well as low pricecost pressure. Based on a study of 150 strategic moves, spanning more than 100 years across 30 industries, the authors, chan kim and renee mauborgne show that lasting success comes not. Do you have a blue ocean sales and marketing strategy.
Blue ocean interactive calgarys professional web design. 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. Lets focus on two of the businessworlds trending marketing strategies for electronic market space today blue ocean vs. Philip kotler explains how to create your marketing strategy according to blue ocean strategy. Marketing strategy the blue ocean and business models. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. How to create uncontested market space and make the competition irrelevant by w. 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. Drawing on more than a decade of new work, kim and mauborgne show you how to move beyond competing, inspire your peoples confidence, and seize new growth, guiding you step by step through how to take your organization. The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present.
Offering assistance in any marketing project from producing a website. 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 and renee mauborgne explicate two types of market growth strategies. Create a oneofakind accessory that is not available from any other apparel maker c. Blue ocean strategy powerpoint templates present better. Chan kim and renee mauborgne argue that lasting success comes from creating blue oceans. 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. Furthermore the blue ocean strategy was awarded with.
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. 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. Founded in 2004, blue ocean is a real estate investment and management company headquartered in baltimore, md. Eliminate marketing altogether and let the clothes sell themselves b.
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