It enables them to successfully identify out of the haystack of possibilities that exist, commercially compelling blue oceans by reconstructing market boundaries. The strategy will help you tremendously, even if you have nothing to do with business development. Blue ocean strategy how to create uncontested market space and make the competition irrelevant boston. The book then covers formulating a blue ocean strategy via 6 principles and using the frameworks and tools. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Then you can start reading kindle books on your smartphone, tablet, or computer. A instead of competing in existing industries, blue ocean strategy equips companies with frameworks and analytic tools to create their own blue ocean of. Now you have become a senior analyst in your company. Summary of the first four chapters of the international bestseller blue ocean strategy. An introduction to blue ocean strategy mba knowledge base. May 26, 2015 summary of the first four chapters of the international bestseller blue ocean strategy. The first four principles address blue ocean strategy formulation. She is also codirector of the insead blue ocean strategy institute. 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 formulation the four principles of. 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. Discover in a practical and fast way what are the principles of this strategy to. In this article you will learn the plan they outline for how to make your competition irrelevant and have sales and profit growth in excess of anything you thought was even possible. In this article you will learn how to make your competition irrelevant and have sales and profit. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. The six paths framework in formulating blue ocean strategy. 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. 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. Apr 03, 2010 blue ocean strategy summary and examples 1. How to create uncontested market space and make competition irrelevant, is a market space that is undeveloped, and untapped by competitors. It presents a systematic approach to making the competition irrelevant and outlines principles and tools any organization.
Subsequent chapters introduce the principles that drive the successful formulation and implementation of blue ocean strategy and explain how they, along with the analytics, are applied in action. Yet, as this influential and immensely popular book shows, these hallmarks of. Beating the competition the blue ocean way, marketing. There are four guiding principles for the successful formulation of blue ocean strategy. Chan kim and renee mauborgne heres the strategy create new markets. Reconstruct market boundaries reduce search risk 2. Everyday low prices and free delivery on eligible orders. Blue ocean strategy is the most successful book on business. One of the principles of blue ocean strategy is reconstruct market. For app developers we help make the competition irrelevant. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. Examining a wide range of strategic moves across a host of industries, blue ocean strategy highlights the six principles that every company can use to successfully formulate and execute blue ocean strategies. The six principles of blue ocean strategy risk factor each principle attenuates evaluation principles risk factor each principle attenuates formulation principles 8. The principles of blue ocean strategy 1207 words bartleby.
Blue ocean strategy is a book written and published by chan kim and renee mauborgne in 2005. In this article, we will help you find the bridge by recommending the top 10 best strategy books. Strategy canvas four actions framework errc grid six paths framework. How to create uncontested market space and make the competition irrelevant. Furthermore the blue ocean strategy was awarded with. 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.
To join the free indie business book club, click here. Focus on the big picture, not the numbers reduce planning risk 3. To break from competition, a organization has to reconstruct the market boundary which is the first and foremost principle in creating blue ocean strategy. How to build a sustainable blue ocean insead knowledge. This strategy targets six principles that can be used in every organization so that they can arrive at a successful development and fulfilment of new markets.
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. Based on their research, kim and mauborgne found six approaches to reconstructing market boundaries which, collectively, are known as the six paths framework. Our aim is to make the formulation and execution of blue ocean strategy as systematic and actionable as competing in the red waters of known market space. 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. 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 value innovation strategy canvas four actions framework errc grid six paths framework pioneer migrator settler map three tiers of noncustomers sequence of creating a blue ocean buyer utility map price corridor of the mass four hurdles to strategy execution tipping point leadership fair process. The six principles show how to reconstruct market boundaries, focus on the big picture, reach beyond existing demand, get the strategic. Venturing beyond an existing industry space implies a series of risks. 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. Value innovation strategy competes in an uncontested market space. The logic behind blue ocean strategy is counterintuitive. Chan kim and renee mauborgne allows managers to address the search risk many companies struggle with. Blue ocean strategy is the most successful book on business masterplanning. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades.
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. Expertise in saas deployment to the accounting profession and small to medium sized business owners, blue ocean principles works with vendors to create strategies that increase user adoption and partnerships to support growth initiatives. How to create uncontested market space and make the competition irrelevant kim, w. The second part describes the four principles of blue ocean strategy. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of strategy and international management at insead. Get the strategic sequence right reduce business model risk executive principles 5.
Blue ocean strategy how to create uncontested market. Then you can start reading kindle books on your smartphone, tablet, or computer no kindle device required. Chan kim and renee mauborgne, published by harvard business school press, boston, massachusetts, 2005, isbn 97815996192 blue ocean strategy is a business strategy book, first published on february 3, 2005. This blog article is a overview of some of the key points of the book by w. One of the key principles of blue ocean strategy is that established businesses can attract and convert groups of noncustomers into paying. Blue ocean principles business development consulting. His book blue ocean strategy, coauthored with renee mauborgne, has sold 3. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. Jun 08, 2007 the six principles of blue ocean strategy risk factor each principle attenuates evaluation principles risk factor each principle attenuates formulation principles 8. Chan kim and renee mauborgne in the indie business book club.
Chan kim and renee mauborgne have created a comprehensive set of analytic tools. Written by the business worlds new gurus, blue ocean strategy continues to. Made by group d of the minor global trendwatching 2015. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. These six principles are detailed in the body of the book and respond for almost 52% of its content. The six principles show how to reconstruct market boundaries, focus on the big picture, reach beyond existing demand, get the strategic sequence right, overcome organizational hurdles, and build execution into strategy. They are the authors of blue ocean strategy, which has sold over 3. The six principle of blue ocean strategy should serve as essential pointers for every company thinking about its future strategy if it aspires to lead the increasingly overcrowded business world. Blue ocean strategy is a book published in 2005 and written by w. Blue ocean strategy is a growth strategy framework focused on the idea of creating an uncontested market spacei. Six paths framework blue ocean shift blue ocean strategy. The first principle of blue ocean strategy is to reconstruct market boundaries to break from the competition and create blue oceans. The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. Blue ocean strategy including examples and pdf download.
There are six principles which are introduced and then discussed on pages. Reach beyond existing demand reduce scales reisk 4. 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. In their 2017 new york times bestselling book, blue ocean shift, kim and.
Chan kim and renee mauborgne in their bestselling book of the same name. Blue ocean strategy is about value innovation in general, in which no emphasis is put on reducing the speed to market. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. What is blue ocean strategy about blue ocean strategy.
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. 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. This framework is very innovative, as its principles challenge the conventional business strategy principles of fighting competitors headon. Jan 01, 2005 examining a wide range of strategic moves across a host of industries, blue ocean strategy highlights the six principles that every company can use to successfully formulate and execute blue ocean strategies. 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. A company equals everyone from the top to the front lines. The six principles show how to reconstruct market boundaries, focus on the big. The most appropriate unit of analysis is the strategic move, the set of managerial actions and decisions involved in making a major marketcreating business offering. In this summary, well give a synopsis of the key concepts, tools and tips from the book. How to create uncontested market space and make the competition irrelevant unabridged by w chan kim, renee mauborgne isbn. The blue ocean strategy explains how to guide your business across seas. 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.
Renee mauborgne is the insead distinguished fellow and a professor of strategy at insead, one of the worlds top business schools. A company will have more success, fewer risks, and increased profits in a blue ocean market. The blue ocean strategy approach to strategy is based on six principles that cater for the major risks of a new market creation project. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. Based on a study of 150 strategic moves spanning more than 100 years. Strategy canvas the strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. Blue ocean strategy formulation the four principles of strategy formation. The seminal book blue ocean strategy has sold over 3. Six principles of blue ocean strategy there are six main principles that guide companies through the formulation and execution of their blue ocean strategy in a systematic risk minimizing and opportunity maximizing manner. Chan kim and renee mauborgne, professors at insead. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was. While the book is aimed primarily at large, traditional businesses, our book club members managed to. 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. Value innovation strategy canvas four actions framework six paths.
List the factors the customer cares about, and current dimensions of competition. It is being published in a recordbreaking 44 languages and is a bestseller across five continents. Blue ocean strategy how to create uncontested market space and make the competition irrelevant facilitators. Blue ocean strategy introduces analytical tools to minimize risk. How to create uncontested market space and enter your mobile number or email address below and well send you a link to download the free kindle app. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. There are six basic approaches to reconstruct market boundaries, also known as six paths framework. This book brings the best of those articles together all in one place.
It is the intersection between these analytic techniques and the six principles of formulating. Top best strategy books no matter what profession you are in, you need a strategy to go from a to b lets say you are a finance professional and you embarked on your journey as a financial analyst. The idea is to pick a set of key factors that current markets focus on, then on a scale. Blue ocean strategy is a bad book, but it is not your usual bad book. Blue ocean strategy how to create uncontested market space. The only reason more big companies dont set sail for them, they suggest.