Chan kim and renee mauborgne, professors at insead. Apple observed the flood of illegal music file sharing that began in the late 1990s, enabled by file sharing programs such as napster, kazaa, and limewire. 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. The strategy canvas outlined in the book is basically a tool to visually show how a company will or has created a blue ocean strategy. Retails blue oceans target and zappos show how being. It is based on the view that market boundaries and industry structure are not a given and can be. Blue ocean strategy is a method of creating business strategy of the enterprise, which was described in a book by w. Blue ocean strategy is where a company creates a completely new market space or market category. Applying blue ocean strategy to digital marketing smart. Chan kim and renee mauborgne the theory is pledging for the creation of a new market space, the blue ocean, as a main technique for the realization of a significant and profitable growth of the company. 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.
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. Chan kim and renee mauborgne in their book blue ocean. Porters five forces is a very competitive marketing strategy. It should be noted that most new business launches today are launches in the red ocean domain. A company will have more success, fewer risks, and increased profits in a blue ocean market. Red oceans are all the industries in existence today the. In this way, it swam into a blue ocean, offering a plastic watch at a price that allowed people to purchase two or three watches at one. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. Marketing strategy the blue ocean and business models. 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 ppt slides linkedin slideshare. How to create uncontested market space and make the competition irrelevant, w.
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 is a book published in 2005 and written by w. Blue ocean strategy and its implications for businesses. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world.
By that we can see that there is a lot of interest by the business people and academics around the world about that subject. It is used to plot how the current competitors compete in a market space, what factors they compete on and how your company and the competition scores on each key factor. 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. Blue ocean strategy is referred to a market for a product where there is no competition or very less competition. Chan kim and renee mauborgne was released in 2005, the market, rightfully so, was abuzz with the simple revelations the book put forth. It views longterm competition as the main concern that business people should be. Lets focus on two of the businessworlds trending marketing strategies for electronic market space today blue ocean vs. Pdf on apr 1, 2012, ibrahim rawabdeh and others published blue ocean strategy as a tool for improving a companys marketing function. Blue ocean strategy says a company can create a blue ocean market space by innovating a new product or service mainly focusing on new to the world services. 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. Blue oceans denote all the industries not in existence todaythe unknown market space, untainted by com petition.
Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. May 02, 2018 the blue ocean strategy represents a theory concerning the business strategy created by two professors namely w. The database and research have continued to expand. 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. Bos is all about minimizing risks due to competition threat and maximizing opportunities by exploring new boundaries. Blue ocean strategy focuses on the ability to create new market space where there is no competition and where the demand for the services becomes uncontested. Blue ocean strategy is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. 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. The key goals of the blue ocean strategy are finding the right marketing opportunity and making the competition irrelevant. Based on a study of 150 strategic moves spanning more than 100 years. However i believe developing new to the world services come with high risk and expenses but if done correctly can be very profitable. 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. How to create uncontested market space and make the competition irrelevant, a.
Blue ocean strategy is the 2015 update to the classic business strategy text of the same name originally published in 2005. This paper first critically analyzes the conjectures presented in the book. The blue ocean marketing strategy boms is relatively new and developed by w. 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. Aug 08, 2019 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.
In this way, it swam into a blue ocean, offering a plastic watch at a price that allowed people to purchase two or three watches at one time. Some strategic planning models are based on theories that dont quite pan out during gotomarket executions. 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. 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. Blue ocean strategy supports to create uncontested market space, make the competition irrelevant, create and capture new demand, break the. 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. Understanding this dynamic is what led target to revamp its product strategy and move into a less crowded market. This research shows that small and medium enterprises comprise of more than 50% of the business around the country. The concept of ideal strategy and its realization using white ocean. Kim and renee mauborgne, blue ocean strategy suggests an organisation should look to create a new demand in an uncontested market space. Second, we investigate if means suggested by authors to create a blue ocean are applicable in emerging markets. Blue ocean strategy business competition in india by. The strategy focuses on moving away from an existing market and seaching for new markets.
Based on a study of 150 strategic moves spanning more than a hundred years and thirty industries, authors w. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades. 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. The case of jordan find, read and cite all the research.
This blog article is a overview of some of the key points of the book by w. The idea in brief the best way to drive profitable growth. The risks of following a blue ocean strategy the adaptive. First published in 2005, it was updated and expanded with fresh content in 2015. Pdf a conceptual framework of niche marketing as blue ocean. Apr 27, 2012 lets focus on two of the businessworlds trending marketing strategies for electronic market space today blue ocean vs. In this article you will learn how to make your competition irrelevant and have sales and profit. Pdf a conceptual framework of niche marketing as blue.
Blue ocean strategy is a powerful framework for finding new business opportunities. 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. Blue ocean strategy including examples and pdf download. May 30, 2017 it reduced costs by using plastic instead of metal, for example, and reducing the parts in each watch from 150 to 50. Blue ocean strategy, red ocean strategy, guerilla marketing, globalized environment, noncustomers, cognitive hurdle, fair process introduction strategy is a game plan designed by every business firm for achieving its goals1. 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. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. How to create uncontested market space and make the competition irrelevant by w. The theory is backed up by an innovation process and by various management. Blue ocean strategy, one of the best seller books has received tremendous attention amongst scholars and practitioners. Blue ocean is a slang term for the uncontested market space for an unknown industry or innovation. Blue ocean strategy how to create uncontested market space. The blue ocean strategy represents a theory concerning the business strategy created by two professors namely w.
But its not always clear how to create a blue ocean strategy for yourself. Embraced by organizations and industries worldwide, blue ocean strategy is a global phenomenon that has sold over 4 million copies, is published in a recordbreaking 46 languages and is a bestseller across five continents. 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. What is blue ocean strategy about blue ocean strategy. 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. It requires the right research, patience and focus. Specifically, these new markets give a company a very high competitive advantage as well as low pricecost pressure. Blue ocean strategy 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 cost. Value innovation strategy competes in an uncontested market space. Blue ocean strategy is a concept that has been pioneered by insead professors, w. In the developing countries like india smes contribute to the generating jobs,gdp, poverty alleviation and have many other aids which. 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 paper xxxxxxxx mkt 421102014 mr.
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. 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. Nov 25, 2015 the linchpin of any blue ocean strategy is strong product differentiation. In blue oceans, demand is created rather than fought over. With the launch of itunes, apple unlocked a blue ocean of new market space in digital music that it has now dominated for more than a decade. 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 marketing theory and the title of a book published in 2004 that was written by w.
Blue ocean strategy is the most successful book on business masterplanning. The linchpin of any blue ocean strategy is strong product differentiation. The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Chan kim and renee mauborgne argue that lasting success comes from creating blue oceans.
To understand red ocean strategy let us begin by defining blue ocean strategy. Pdf blue ocean strategy as a tool for improving a companys. Blue ocean strategy formulation the strategy canvas. Essay about blue ocean strategy 825 words bartleby.
Blue ocean strategy introduces analytical tools to minimize risk. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. How to create uncontested market space and make the competition irrelevant, a book by professors w. An example of a successful execution of a blue ocean strategy is the ipod. Blue ocean strategy is a marketing theory in which a business enters a market that has little or no competition. Sep 24, 2017 blue ocean strategy requires a different mindset. Blue ocean strategy can be applied across sectors or businesses. It is about creating and capturing uncontested market space, thereby making the competition irrelevant. 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. Companies pursue blue ocean strategies to make competition irrelevant. Achieved via the delivery of features that have a highest marginal benefit to customer needs. The key to a successful blue ocean strategy is finding the right market opportunity and making the competition irrelevant.812 973 1500 255 1405 309 577 62 1108 203 699 1112 190 1149 1160 1154 1001 1332 313 593 871 1195 58 359 1205 1236 751 49 1160 790 898 763 588 526 1238 1116 692 343 1339 467 803 763 916 734 270 1228