Blue ocean strategy is a new way of thinking, a new strategic mindset, a bold new path to winning the future. F or twentyfive years, competition has been at the heart of corporate strategy. It is based on the view that market boundaries and industry structure are not a given and can be. The blue ocean strategy simulation was designed with extensive input from the authors of the bestselling book blue ocean strategy. Yellow tail wine, winenco, blue ocean strategy, stategyatheinz, process of excellence network academic article. 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. The theory and practice of strategy in business organizations s. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Ebscohost serves thousands of libraries with premium essays, articles and other content including blue ocean strategy. Blue ocean strategy theory and criticism 1246 words 5 pages. Blue ocean strategy with boss business simulation stratx. There youll find all the resources you needfrom ideas in practice and cases from government and private industry, to teaching materials, mobile apps, realtime updates, and tips and tools to help you make your blue ocean journey a success. Jofre foreword the present report is the result of an ongoing study. 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 referred to a market for a product where there is no competition or very less competition. Value innovation strategy competes in an uncontested market space. Outline the main components of kim and mauborgnes 2004 concept of blue ocean strategy. Reviewing the blue ocean strategy universiteit twente. Blue ocean strategy is a concept that has been pioneered by insead professors, w. The structure can be created or recreated by the steps taken by players in the market. If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Blue ocean strategy and the dynamic nature of business strategies. Blue ocean strategy from theory to practice summary. 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. Blue ocean strategy formulation the four principles of. In the decade since blue ocean strategy was first published, weve fielded thousands of such questions. The risks of following a blue ocean strategy the adaptive. The fundamental premise is that most companies fight competitors headtohead in the same space, chasing the same customers with very similar products, creating a bloodyred ocean in their feeding frenzy.
Blue ocean strategy and its implications for businesses. Competing in red oceans dominates the current field of strategy in theory and in practice, even as businesses need to create blue ocean strategy heightens. While blue ocean strategy helped to identify new avenues for strategic success, it fell short on providing the actual steps needed to jump from a crowded marketplace into the fabled blue ocean of the title. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. From theory to practice, kim and mauborgne, 2005 book. 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. If you have access to a journal via a society or association membership, please browse to your society journal, select an article to view, and follow the instructions in this box. 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. By focusing on strategies of competition in established industries, companies and researchers have overlooked the value of creating new market spaces where there are no competitors. Value innovation is the cornerstone of blue ocean strategy 1 and it is the strategic move that allows a company to create a blue ocean. By focusing on strategies of competition in established industries, companies and researchers have overlooked the value of creating new market spaces where.
In contrast, blue ocean strategy originated from a study that took place over 10 years and analyzed company successes and failures in more than 30 industries. The idea in brief the best way to drive profitable growth. Today, one can hardly speak of strategy without involving the language of competition. To do so, the commercial offers of selected airlines were compared to validate any attempts to apply the blue ocean strategy concept. 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.
Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. From theory to practice case analysis, blue ocean strategy. Blue ocean strategy is a marketing theory in which a business enters a market that has little or no competition. From theory to practice beer and readytodrink cocktails, for example, were much sweeter and easier to drink. This article investigates the applicability of blue ocean strategy in regard to lowcost airlines in the civil airline industry.
Chan kim and renee mauborgne, professors at insead. It is about creating and capturing uncontested market space, thereby making the competition irrelevant. Specifically, these new markets give a company a very high competitive advantage as well as low pricecost pressure. Most business focus efforts on their current customers, for blue ocean strategy, focus on. It is a roadmap to move you, your team, and your organization to new heights of confidence, market creation and growth. Blue ocean strategy including examples and pdf download. Accordingly, yellow tail was a completely new combination of wine characteristics that produced an uncomplicated wine structure that was instantly appealing to the mass of alcohol drinkers. The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. An introduction to blue ocean strategy mba knowledge base. Blue ocean shift, however, provides a clear process for business identifying opportunities and developing plans for. Pdf examining the emergence and evolution of blue ocean.
Blue ocean strategy is the 2015 update to the classic business strategy text of the same name originally published in 2005. Examining the emergence and evolution of blue ocean strategy. From theory to practice case study solution, in the market of the universe is composed of two types of oceans. The concept has only really been part of the discourse and practice in the. Pdf blue ocean strategy bos is a management concept which prescribes that. Tru group inc blue ocean strategy belongs in the dead sea.
From theory to practice case solution, red oceans and blue oceans. How to create uncontested market space and make the competition irrelevant, a book by professors w. This paper presents a methodical and critical analysis of the key elements regarding the strategic management literature and the blue ocean strategy. Typically, companies in the red ocean pursue incremental improvements for customers through either low cost or differentiation. 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. Red oceans are all the industries in existence today, it is in. What a company will do if it adopts a blue ocean strategy skills practiced making connections use understanding of the concept of a blue ocean strategy to identify its effects on a business. This blog article is a overview of some of the key points of the book by w. Blue ocean strategy and the dynamic nature of business.
The four pillars of blue ocean leadership insead knowledge. 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. Empirical validation of blue ocean strategy sustainability in. The strategy focuses on moving away from an existing market and seaching for new markets. How to create uncontested market space and make the competition irrelevant w. Chan kim renee mauborgne or twentyfive years, competition has been at the heart of corporate f. Some strategic planning models are based on theories that dont quite pan out during gotomarket executions. What is blue ocean strategy about blue ocean strategy. Blue ocean strategy can be applied across sectors or businesses. Article blue ocean strategyfrom theory to practice 2005. 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. Access to society journal content varies across our titles.
Blue ocean is a slang term for the uncontested market space for an unknown industry or innovation. How is blue ocean strategy different from a classic differentiation strategy. Article information, pdf download for blue ocean strategy. Blue ocean strategists have always existed but for most part their strategies have been largely unconscious. The market universe is composed of two types of oceans. In this article you will learn how to make your competition irrelevant and have sales and profit. Your course participants will truly experience the power of blue ocean strategy by applying the theory and using the methodologies and tools described in the book. This strategy gives a new approach to the formation of new business strategies for all businesses. 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 ocean strategy theory to life. Sep 24, 2017 in 2005, blue ocean strategy, expanded edition. Presents a set of analytical tools and frameworks that can enable firms to develop blue ocean strategies.
Once companies realize that blue ocean strategies have a different underlying. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades. Red oceans are all the industries in existence today, they are increasi. To learn more about the power of blue ocean strategy, visit blueoceanstrategy.
From theory to practice, open epub for blue ocean strategy. This strategy, which is based on extensive research of hundreds of companies spanning across decades and including several industries, proclaims that instead of battling competitors, companies can create new markets for themselves. Blue ocean strategy is a theory explained in a 2005 book by w. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. Although established industries red oceans are growing increasingly cluttered, few companies are currently attempting to create new markets.
From theory to practice by focusing on strategies of competition in established industries, companies and. The business logic behind voluntary greenhouse gas reductions pp. Critically assess the strengths and limitations of this approach to pursuing competitive advantage. Jul 16, 2015 the blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. Download this document for strategy at maastricht university for free and find more. Jan 14, 2015 blue ocean strategy is a new way of thinking, a new strategic mindset, a bold new path to winning the future.
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