Readers will learn about the ways to create uncontested market space via examples from some of the most. Chan kim and renee mauborgne in their book blue ocean strategy. All in all, blue ocean strategy is a book worth reading. Blue ocean strategy is a book published in 2005 and written by w. The concept of blue ocean strategies is new in the business world as it was first published in 2005 in the bookmanual blue ocean strategy, by w. The text offers a practical handbook to business students and entrepreneurs who wish to rise above the fray of the competition, become pioneers in previously uncharted market territory, and gain access to impressive growth opportunities and an. Blue ocean strategy has a lot to offer for anyone interested in figuring out what direction to take their team. Companies should instead look for new market space and ways to reinvent the industry. It is being published in a recordbreaking 44 languages and is a w. For generations, business schools have taught some form of strategy for business leaders to execute when they are in a business.
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. Blue oceans, in contrast, are defined by untapped market space, demand creation, and the opportunity for highly profitable growth. What is blue ocean strategy about blue ocean strategy. How to create uncontested market space and the make competition irrelevant 2005. 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. But for my money, theres just as much value in the many practical approaches the authors give us to actually drive change in our organizations. We call it value innovation because instead of focusing on beating the competition, you focus on making the competition irrelevant by creating a leap in value for buyers and your company, thereby opening up new and uncontested market space. Blue ocean strategy book summary bestbookbits daily book. How to create uncontested market space and the make competition. How to create uncontested market space and make competition irrelevant, is a market space that is undeveloped, and untapped by competitors. 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. Blue ocean strategy is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years.
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. They research for around over 20 years and sum up a theory of blue ocean. Blue ocean strategy chapter 14 the four action framework chapter two. The only way to beat the competition is to stop trying to beat the competition. Blue ocean strategy including examples and pdf download. 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. Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group.
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 strategies a summary blue ocean strategy is. Blue ocean strategy can be applied across sectors or businesses. 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. To see the sources for this article series go to the first article in the series titled blue ocean strategy summary.
A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. 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 summary soundview executive book. 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. You may or may not agree with the central philosophy, but you will be inspired. Red ocean strategy blue ocean strategy compete in exiting market space. Summary of the first four chapters of the international bestseller blue ocean strategy. Chan kim and renee mauborgne in the indie business book club. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Executing blue ocean strategy 7overcome key organizational hurdles 147 8 build execution into strategy 171 9 conclusion. Value innovation strategy competes in an uncontested market space. Red oceans, where competition is fierce in bloody waters. To understand red ocean strategy let us begin by defining blue ocean strategy.
The strategy canvas provides a highly visual tool to help look at future options. Based on 15 years of research, the authors used 150 successful strategic moves spanning 120 years of business history and across 30. In this book summary of blue ocean strategy, well outline the key concepts, tools and tips from the book to help you create uncontested market. Chan kim and renee mauborgne in 2005 from harvard business school. Theyve progressed every year since to 15th in 2005. Blue ocean strategy is where a company creates a completely new market space or market category. Blue ocean strategy is a bad book, but it is not your usual bad book.
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. The sustainability and renewal of blue ocean strategy 185 appendix a 191 appendix b 209 appendix c 2 notes 217 bibliography 223 index 231 about the authors 239 viii contents fmkim. Blue ocean strategy is an important book for anyone seeking a strategy that can help them in their career and in business. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking away from the.
This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. How to create uncontested market space and make competition irrelevant book summary. Chan kim and renee mauborgne in their book titled blue ocean strategy. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition.
Blue ocean strategy presents a systematic approach to making the competition irrelevant and outlines principles and tools any organization can use to create and capture their own blue oceans. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. 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. To make your life easier, you can download these free templates that have been made especially for blue ocean strategy presentations. 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. 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. 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. This blog article is a overview of some of the key points of the book by w. Blue ocean strategy is the 2015 update to the classic business strategy text of the same name originally published in 2005. 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. Blue ocean strategy is a business strategy book, first published on february 3, 2005 by the harvard business school press. Cirque created what the authors call a blue ocean, a previously unknown market space.
After reading you will understand the basics of this powerful strategy tool what is the blue ocean strategy. This article explains the blue ocean strategy, developed by w. Blue ocean strategy is referred to a market for a product where there is no competition or very less competition. Made by group d of the minor global trendwatching 2015. Blue ocean strategies summary blue ocean strategies a. In the book, the red ocean is an ocean filled with sharks businesses, and all the sharks going after the same food supply customers. 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. There are companies who accomplish this feat and in blue ocean strategy, authors w.
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 execution click here to read this article. Chapter 1 summary this is the first chapter of blue ocean strategy. 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. By that we can see that there is a lot of interest by the business people and academics around the world about that subject. Value innovation is the cornerstone of blue ocean strategy. Blue ocean strategy is the most successful book on business masterplanning. View notes blue ocean strategies summary from mgmt 430 at university of washington. What is the blue ocean strategy the term blue ocean was coined by two professors w. To join the free indie business book club, click here. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of. 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.
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