Blue ocean strategy can be applied across sectors or businesses. 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. In his book, blue mind he describes why we as humans are drawn to the ocean, how our brains are affected, and how it affects our general wellbeing. In this chapter, an indepth analysis of the theory behind the blue ocean strategy will be conducted to answer the question whether the blue ocean strategy valid and reliable on theoretical basis. In short, you create a blue ocean by focusing on the factors that customers really care about, while discarding factors they dont. How is blue ocean strategy different from a classic differentiation strategy. This blog article is a overview of some of the key points of the book by w. It is the idea of trying to find market spaces that are free of competitors by creating and caputuring new demand, making the competition irrelevant. Chan kim and renee mauborgne in their book titled blue ocean strategy. Chan kim is the codirector of the insead blue ocean. How to create uncontested market space and the make. In the spirit of rachel carson, carl safinas book takes the reader on a lyrical journey through the oceans from the coasts to the deep abyss. Blue ocean strategy including examples and pdf download. A company will have more success, fewer risks, and increased profits in a blue ocean market.
Blue ocean strategy is an outofbox kind of breakthrough book that gives its readers a new way of understanding the framework organization that has an assignment to identify and implement different blue ocean strategies in various. Blue mind theory shows the many health benefits of the ocean. Feb 03, 2015 buy blue ocean strategy, expanded edition revised ed. 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. Blue ocean strategy powerpoint template slidemodel. Blue ocean strategy is a mustread for any aspiring entrepreneur or business marketerif you know someone who is trying to start their own business and is still trying to figure out where to start, this book has the potential to be an absolutely transformational gift for them. Theory, strategy, criticism, ocean outline the main components of kim and mauborgnes 2004 concept of blue ocean strategy. The strategy focuses on moving away from an existing market and seaching for new markets. Value innovation is the cornerstone of blue ocean strategy. Blue ocean strategy is a book published in 2005 and written by w. Blue ocean strategy ist eine methode zur entwicklung dauerhaft profitabler geschaftsmodelle aus dem bereich des strategischen managements. Blue ocean strategists have always existed but for most part their strategies have been largely unconscious.
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. Jul 03, 2018 introduction it is not hard to see why blue ocean strategy has been so popular. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. It calls for profiles for leaders that are tailored to the very different. Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group. Eight key points of blue ocean strategy heres the essence of blue ocean strategy captured in eight key points. Blue ocean strategy is the most successful book on business masterplanning in recent years. In his book, blue mind he describes why we as humans are drawn to the ocean, how our. Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. Blue ocean strategy is a bad book, but it is not your usual bad book. Blue ocean strategy blue ocean strategy pdf blue ocean strategy 2004 five keys to blue ocean strategy book summary blue ocean strategy blue ocean strategy expanded edition blue ocean strategy book by w. Chan kim and renee mauborgne, professors at insead.
Blue ocean strategy theory and criticism 1246 words. Chan kim, 9781625274496, available at book depository with free delivery worldwide. The blue ocean leadership theory attempts to completely revolutionize how a company works by starting from the inside. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. A blue ocean exists when there is potential for higher profits, as there is now competition or irrelevant competition. Blue ocean shift is the essential followup to blue ocean strategy, the classic and over 4 million copy global bestseller by worldrenowned professors chan kim and renee mauborgne. Blue ocean shift is the essential followup to blue ocean strategy, the classic 3. Blue ocean strategy is a theory explained in a 2005 book by w. How to create uncontested market space and the make competition irrelevant 2005. What is blue ocean strategy about blue ocean strategy.
First published in 2005, it was updated and expanded with fresh content in 2015. With captivating rhymes and colorful illustrations, the stories reveal timeless achievement principles as children follow blue ocean bob. 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. Value innovation strategy competes in an uncontested market space. Henderson chair professor of strategy and international management at insead. Based on an eponymously titled book, this strategy argues that cutthroat competition results in nothing but a bloody red ocean of rivals.
Chan kim and renee mauborgne in their book blue ocean. Critically assess the strengths and limitations of this approach to pursuing competitive advantage. 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 untapped customer base. Blue ocean leadership is designed to be applied across the three distinct management levels. Once companies realize that blue ocean strategies have a different underlying. Blue ocean strategy is a powerful framework for finding new business opportunities. Blue oceans strategy is the approach that suggests a company is better off searching for ways to play in uncontested market places instead of engaging with competition in existing marketing spaces. This creates a new product offering that doesnt currently exist. Blue ocean strategy is the most successful book on business master. It is being published in a recordbreaking 46 languages and is a bestseller across five continents. Blue ocean strategy is a marketing theory in which a business enters a market that has little or no competition. 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. Specifically, companies that are fighting in a fiercely competitive market which contains major players, i.
It is about creating and capturing uncontested market space, thereby making 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. This templates provides iconography and diagrams to work with the blue ocean. Why should companies continue to fight in tough competitive markets waters that are red with blood when they can find new waters that ar. 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. Instead of just focusing on the sale, it focuses on. Jul 16, 2015 in this article, we will look at 1 what is a blue ocean strategy. Achieved via the delivery of features that have a highest marginal benefit to customer needs. It is a marketing theory from the similarlynamed book that was published in 2005 and became a perennial bestseller. The fundamental premise is that most companies fight competitors headtohead in the same space, chasing the same customers with.
Red oceans are all the industries in existence today. Nov 04, 2018 want more secrets and tricks like the blue ocean strategy. Blue ocean strategy is the most successful book on business masterplanning. Now, 12 years later, the authors offer an exciting new book that synthesizes their experience in assisting with the implementation of blue ocean strategy. A 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 text offers a practical handbook to business students and entrepreneurs who wish to rise above the fray of the competition. In todays environment most firms operate under intense competition and try to do everything to gain market share. 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. By that we can see that there is a lot of interest by the business people and academics around the world about that subject.
They need to create blue oceans of uncontested market space to prosper. Mar 07, 2016 author and marine biologist wallace j. Ebscohost serves thousands of libraries with premium essays, articles and other content including blue ocean strategy. His book blue ocean strategy, coauthored with renee mauborgne, has sold 3. Nichols has conducted years of research to show how being inon, under, or near the ocean is beneficial to our health. With this groundbreaking book, kim and mauborgneboth professors at. Blue ocean is a slang term for the uncontested market space for an unknown industry or innovation. Embraced by organizations and industries worldwide, blue ocean strategy is a global phenomenon that has sold over 4 million copies. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades. Blue ocean strategy presents a systematic approach to making the competition irrelevant and outlines principles and tools any company can use to create and. Everyday low prices and free delivery on eligible orders.
Blue ocean strategy is the 2015 update to the classic business strategy text of the same name originally published in 2005. But, lets first understand what is blue ocean and how it is different from red ocean strategy. The adventures of blue ocean bob childrens books blue. In short, you create a blue ocean by focusing on the factors that. Introduction it is not hard to see why blue ocean strategy has been so popular. But its not always clear how to create a blue ocean strategy for yourself. The strategy aims to capture new demand, and to make competition irrelevant by introducing a product with superior features. 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.
It is being published in a recordbreaking 44 languages and is a w. The term blue ocean was coined by two professors w. Blue ocean strategy pushes companies to create new industries and break away from the competition. May 03, 2017 blue ocean strategy, create new markets and leave the competition behind renee mauborgne wobi duration. For more on these authors and their new book, blue ocean shift, see. It is generally acknowledged that the title, blue ocean strategy, sounds very appealing. Sep 24, 2017 blue ocean shift provides us with a comprehensive guide to enable any organization with the right mindset to launch and implement a blue ocean initiative. 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 with feuding competitors. Thats why in our book, blue ocean strategy, we provide practical. Blue ocean strategy theory and criticism essay topic.
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. The goal of a blue ocean strategy is for organizations to find and develop blue oceans uncontested, growing markets and avoid red oceans overdeveloped, saturated markets. It 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. 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. 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. The global phenomenon, embraced by business worldwide and. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. He is the coauthor, along with renee mauborgne, of the book blue. Aug 16, 2018 if you are a part of the business community, you might be familiar with the concept of blue ocean strategy. This book not only challenges compa nies but also shows them how to achieve this.
Blue ocean strategy theory and criticism free essays. 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. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of strategy and international management at insead. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. Just think of its initial blue ocean shift in book retailing that separated it from the pack with its offering of the largest selection of books in the world. Entertain and inspire your kids with the adventures of blue ocean bob awardwinning early chapter books for ages 6 and up. 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.
He explores the ocean through the lens of his personal experiences to reveal the beauty, mystery, and political discourse surrounding the oceans of our world. An introduction to blue ocean strategy mba knowledge base. Chan kim and renae mauborgnea in their book blue ocean strategy. What is distinctive about blue ocean strategy as a theory. Blue ocean strategy powerpoint template is a professional and modern presentation for the description or explanation of the blue ocean strategy theory. Value innovation value innovation is created in the region where a companys actions favorably affect both its. 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. The red ocean describes a situation where existing industry rules are readily formed, static and cannot be changed. The authors wrote that blue ocean strategy is a theory that targets companies that are fighting for market share.