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 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 seize new growth. Since, the industries are in a state of non existence, there is absolutely no relevance of peer. It draws on our research on blue ocean strategy, our model for creating new. Blue ocean strategy is the most successful book on business masterplanning. The case demonstrates that if nintendo attempted to compete headtohead against its sony and microsoft rivals they would be further marginalized in the game console industry. It aggregated new demand for its golf club offering by looking at noncustomers. Buy blue ocean strategy, expanded edition revised ed. Chan kim and renee mauborgne, professors at insead.
Blue ocean strategies a summary blue ocean strategy is a business strategy book first published in 2005 and. It is all about devising and acquiring the uncontested market forum by spawning a new demand. Chan kim and renee mauborgne a simplified book summary of how to execute a blue ocean strategy. How to create uncontested market space and make the competition irrelevant, w. The value curve is the basic component of the strategy canvas. Although the universe of noncustomers typically offers big blue ocean opportunities, few companies have keen insight into who noncustomers are and how to unlock them.
Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group. This case illustrates that if companies wish to tap into latent demand and create organic growth, they must learn from non customers. Value innovation strategy competes in an uncontested market space. Blue ocean strategy is a method of creating business strategy of the enterprise, which was described in a book by w. Noncustomers, not customers, hold the greatest insight into the points of pain and. The strategy was intended to fill a gap in the market. View notes blue ocean strategies summary from mgmt 430 at university of washington. Social sector application and research, including such topics as how blue ocean strategy can be applied in the developing world to mitigate poverty and improve education and health. This blog article is the third in a series of five blog articles on the book blue ocean strategy by w. 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. Blue ocean strategies summary blue ocean strategies a.
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. 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. A lot has been written about it and i would have said practically everything had been said about it until i looked up the book on amazon to see the current price. I recently read this management book titled, blue ocean strategy that highlighted one key observation. It aggregated new demand for its golf club offering by looking at non customers. Public sector application and research, including the application of blue ocean shift, blue ocean strategy, and blue ocean leadership to governments and non profits. 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. The rapid pace of innovation and change in recent years has led scholars and executives to search for an approach to strategy that is more dynamic than harvard professor michael porters classic five forces. Are there any commonalities between the non buyers. 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 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. Beyond competing proven steps to inspire confidence and seize new growth by w. The blue ocean strategy tiers of non customers bosco.
The book offers a framework and set of tools designed to enable agencies. The database and research have continued to expand. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. List the factors the customer cares about, and current dimensions of competition. How to create uncontested market space and make the competition irrelevant, a book by professors w. Chan kim and renee mauborgne 2006 blue ocean strategy has been described as a must read for all business students. The book presents analytical frameworks and tools to foster an organizations ability to systematically create and capture blue oceansunexplored new market.
Blue ocean strategy i recently read this management book titled, blue ocean strategy that highlighted one key observation. Blue ocean strategy is the 2015 update to the classic business strategy text of the same name originally published in 2005. 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. 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. The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. Rather than concentrating on beating the competitors, the company must actually prioritize on making the competition irrelevant. Drawing on more than a decade of new work, kim and mauborgne show you how to move beyond competing, inspire your peoples confidence. Mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. Blue ocean strategy introduces analytical tools to minimize risk. To convert this huge latent demand into real demand in the form of thriving new customers, companies need to deepen their understanding of the universe of noncustomers.
Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. In their 2017 new york times bestselling book, blue ocean shift, kim and mauborgne share how to put these practical marketcreating tools into practice to move from red to blue oceans and to do so in a way that people own and drive the process. Companies should instead look for new market space and ways to reinvent the industry. Although blue oceans enable a firm to gain uncontested market space, it is only for a time that this is so. Its a useful read for marketers looking for innovative ways to approach business strategy. 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. The author offers the following example that illustrates why focusing on the commonalities of the noncustomers can be a good idea. We are swimming in a very large ocean with a lot of unexplored waters of non customers. The premise of the book is that companies can succeed by creating. These examples show how companies in mature and unattractive industries have created new market space by following what the professors refer to as value innovation. One of the most successful efforts to do so is the book blue ocean strategy, by. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of. Achieved via the delivery of features that have a highest marginal benefit to customer needs.
In blue ocean strategy, they describe the red ocean as where most companies compete, seeking customers from the same market as their competitors, kim and mauborgne suggest that companies break out of the red ocean of bloody competition by creating uncontested market space in the blue ocean that makes the competition irrelevant. Blue ocean strategy formulation the strategy canvas. The cornerstone of the blue ocean strategy is value innovation. Blue ocean strategy is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. Because of widespread access to information and resources today, it becomes too easy for businesses to enter an already established market. And how do you transform noncustomers into new customers. 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 an important book for anyone seeking a strategy that can help them in their career and in business. The author offers the following example that illustrates why focusing on the commonalities of the non customers can be a good idea. Blue ocean strategy is the most successful book on business. In this significant book, kim and mauborgne clearly articulate the theory of blue ocean strategy and elegantly bring the theory to life with entertaining and educational examples. Blue ocean strategy is a book published in 2005 and written by w.
A pathbreaking strategy known as blue ocean strategy is a pacifist marketing scheme and is considered a strategic planning tool for assessing a business. Blue ocean strategy is a bad book, but it is not your usual bad book. You can think of blue ocean as space that has yet to have been explored by any other business meaning it is a land full of opportunity. Now we turn from current customers to noncustomers. This blue ocean strategy and shift addresses exactly where i am. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. I can now incorporate the blue ocean strategy and shift in my process.
Everyone who has read the book blue ocean strategy by w. It is being published in a recordbreaking 44 languages and is a w. To join the free indie business book club, click here. Identify the three tiers of noncustomers in your industry. Blue ocean strategy is a theory explained in a 2005 book by w. Blue ocean strategy captured the imagination of the forprofit world almost as. Chan kim and renee mauborgne in the indie business book club. 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. Studied 150 strategic moves spanning more than 100 years and 30 industries blue ocean strategy is the simultaneous pursuit of low cost and differentiation aim is not to outperform the competition but to make it irrelevant.
Blue ocean strategy is based on the idea that every enterprise can achieve higher profit by creating new demand in non competitive market so called blue ocean. 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. The 3 tiers of non customers and how to unlock them. In short, the whole book could be summed up in the very first chapter where value innovation is explained because value innovation is not the cornerstone of blue ocean strategy it is blue ocean strategy. The three tiers of noncustomers, a blue ocean analytic. In their 2005 bestselling book blue ocean strategy w. 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.
1163 299 535 232 392 1496 433 999 144 1413 308 364 18 342 1644 735 671 645 400 892 986 465 1182 665 1515 993 66 797 1305 104 565 286 817 1232 1445 1551 911 1552 745 110 36 1260 485 5 1100