In a blue ocean you change the playing field of strategy. Blue ocean strategies a summary blue ocean strategy is a business strategy book first published in 2005 and. The four actions framework and the eliminatereduceraisecreate grid are almost a straightforward stepbystep strategy which offers an answer to all four parts of the marketing mix. Four actions framework blue ocean strategy shortform blog. Everyday low prices and free delivery on eligible orders. Chen, information systems theory and practices red ocean vs. Cirques four actions framework of their blue ocean strategy is as follows. This collection of work by globally preeminent management thinkers w.
Blue ocean strategy is a bad book, but it is not your usual bad book. Blue ocean strategy blue ocean strategy is a strategic move that organizations or individuals use to create new product or ideas. Each industry underwent continuous upheaval, each time spurred by a blue ocean strategy that 1 reduced factors unimportant to buyers, 2 increased factors important to buyers, 3 expanded the market. Chan kim and renee mauborgne in their book titled blue ocean strategy. Definition of blue ocean strategy what is blue ocean strategy.
Value innovation is a new way of thinking about and executing strategy that results in the creation of a blue ocean. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. Value innovation strategy competes in an uncontested market space. How to create uncontested market space and make the competition irrelevant unabridged by kim, w chan, mauborgne, renee isbn. Your productservice must raise and create customer value gain and simultaneously reduce and eliminate features or services that are less valued, or not valued at all, the customer pain. Chen, information systems theory and practices blue ocean strategy. Together, they wrote a bestselling book blue ocean strategy. Blue ocean strategys four actions framework poses four central questions that let companies break the valuecost tradeoff and create a blue ocean. 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. Cirque eliminated the use of animals, the three ring circus experience and the star performers. Blue ocean strategy chapter 14 the four action framework chapter two. Chan kim and renee mauborgne have created a comprehensive set of analytic tools and frameworks to create blue oceans of new market space. 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. Professor of mis school of business administration gonzaga university spokane, wa 99258 usa.
Four actions framework template blue ocean framework miro. Pdf blue ocean strategy as a tool for improving a companys. 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. Jul 16, 2015 the blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. 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.
First published in 2005 then republished in 2015 with new information, it has become the core approach we use with our clients, many of whom are literally on the brink before getting unstuck and moving ahead in new directions. In this article, we will look at what is a blue ocean strategy. Four actions framework of blue ocean applied to jet blue. View notes blue ocean strategies summary from mgmt 430 at university of washington.
But, compared with red ocean strategy, this can be especially difficult for blue ocean strategy as it represents a significant departure from the status quo. A blue ocean strategy is a tool used to gaining a competitive advantage, it is a strategy used to create a uncontested market space and make the competition irrelevant. 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. 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. The book succeeds in showing how businesses, can outdo their competitors. Blue ocean strategy workshop at disted hospitality campus. Blue ocean strategy presents a systematic approach to making the competition irrelevant and outlines principles and tools any company can use to create and capture their own blue oceans. How to create uncontested market space and make the competition irrelevant from the worlds largest community of rea. Achieved via the delivery of features that have a highest marginal benefit to customer needs.
This short article examines the many ways blue ocean strategy bos can be used to create a better educational system. Blue ocean strategy is a consistent pattern of strategic thinking behind the. May 14, 2011 the blue ocean strategy four actions framework also called eliminate reduce raise create grid errc grid is a complementary tool to the strategy canvas. Sep 26, 2016 the strategy canvas provides a highly visual tool to help look at future options. And your blue ocean strategy must provide unique services and capabilities. To break the tradeoff between differentiation and low cost in creating a new value curve, the framework poses four key questions, shown in the diagram, to challenge an industry. The book mostly borrows from a range of over 140 strategic marketing moves within a period of over a century. Chan kim and renee mauborgne and outlined in their breakthrough book, blue ocean strategy.
Create here, the idea is to create new industry factors that can generate value and anew market and were not offered before. You may or may not agree with the central philosophy, but you will be inspired. Chan kim and renee mauborgne in their bestselling book of the same name. Captures current state of play in the known market space. Sep 23, 2014 to put blue ocean leadership in action, we adapt the analytic tools and frameworks of blue ocean strategy to the leadership context.
Blue ocean strategy 1creating blue oceans 3 2 analytical tools and frameworks 23 part two. Remember what the product that company delivers is. The four actions framework and errc grid tweet after you define the three tiers of non customers, the idea is that you poll these noncustomers and find out what it would take to purchase your product or service. Chan kim and renee mauborgne is used to reconstruct buyer value elements in crafting a new value curve or strategic profile. The premise of the book is that companies can succeed by creating. Bos four actions framework errc grid innovating now. The expanded edition of blue ocean strategy, is metaphorical, witty, and almost biblical in its commentary of the bloody waters of competitive red ocean market forces. Remember what the product that company delivers is all about.
It provides guidelines to identify new competing factors and therefore be more creative during later phases of innovation and design a new buyer value curve. How to create uncontested market space and make the competition irrelevant w. May 14, 2020 your blue ocean strategy must result in unique products or assortment which a customer can not get anywhere else. This blog article is a overview of some of the key points of the book by w. The 4 actions framework is a core strategic tool used in blue ocean strategy.
A good blue ocean strategy has items in each of the four grids. By creating this plot, you can find imbalances in your strategy, such as only raising and creating which leads to overengineering and trying to be the best or only eliminating and reducing which leads to mere price competition. It is very important that each component of the sequence be in the same order as listed in order to successfully create a blue ocean for any company. 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. To create a blue ocean strategy company there has to be. Blue ocean strategies summary blue ocean strategies a. The six paths framework in formulating blue ocean strategy are 1 look across alternative industries, 2 look across strategic groups within industry, 3look across buyer groups, 4 look across complementary product and service offerings, 5look across the functionalemotional orientation of an industry and 5look across time to shape trends. Blue ocean strategy is a book published in 2005 and written by w. The blue ocean strategy concept has been adopted as a means to implement various initiatives to achieve national key result areas. All in all, blue ocean strategy is a book worth reading. Companies, like individuals, often have a tough time translating thought into action whether in red or blue oceans. Blue ocean strategy is the most successful book on business. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. The fouractions frameworkon blue ocean strategy to reduce, create, raise and eliminate industry practices to create a blue ocean fromthe industry red ocean.
Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. Blue ocean strategy actionable tools and frameworks. The six paths framework in formulating blue ocean strategy. I wish i could say my own pursuit of enlightenment led me to chan kim and renee mauborgnes masterpiece on embracing and leveraging difference. Cirques four actions framework of their blue ocean. This framework is used to break the tradeoff between differentiation and low cost to create a new value curve, using 4. Chan kim and renee mauborgne brings together their perennial bestseller book blue ocean. Although it was developed with the intention to motivate the private sectors and industries to create new demands by venturing into areas of greater potential, this concept has been tailored and adopted into. Shortform has the worlds best summaries of books you should be reading. Het four actions framework van chan kim en mauborgne is een tool uit het boek blue ocean strategy om op een systematischere manier tot. The result is the leadership canvas, the leadership profile and the blue ocean leadership grid all of which are grounded in acts and activities, easy to understand and communicate and that engage more people in an.
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. Furthermore the blue ocean strategy was awarded with. Met het four actions framework kun je komen tot innovatieve klantgerichte. Formulating blue ocean strategy 3reconstruct market boundaries 47 4focus on the big picture, not the numbers 81 5reach beyond existing demand 101 6 get the strategic sequence right 117 fmkim. Blue ocean strategy including examples and pdf download. This may include products you have designed, unique functionality, leveraging online and physical store footprints in some fashion, leveraging the internet. Blue ocean strategy blue ocean strategy introduction blue ocean strategy is a marketing book by w.
Chan kim and renee mauborgne 2006 blue ocean strategy has been described as a must read for all business students. 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. The four pillars of blue ocean leadership insead knowledge. Strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. The blue ocean strategy recommends that a successful business should be able to develop a new demand in an uncontested markets rather than compete directly with other competitors in the industry. Blue ocean strategy is a strategy that advice companies to go to a new market, which interest. Pdf blue ocean strategy download full pdf book download. Blue ocean strategy is a theory, method and toolkit developed by w.
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. Chan kim and renee mauborgne was first published in 2005. The first part presents key concepts of blue ocean strategy, including value. By using the descriptive method and the theories in strategic management, it is clearly visible how the implementation of blue ocean strategy by pt kintetsu world express indonesia can make the. 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. Mar 15, 2014 four actions framework of blue ocean applied to jet blue 1.
Jun 21, 2007 blue ocean strategy red ocean strategy 2. Tools and frameworks for creating and capturing blue oceans it is constructed to create a new value curve and when you apply the four actions framework to the strategy canvas of your industry, you get a. The four actions framework is used to help create value innovation and break the valuecost trade. The global phenomenon that has sold over 4 million copies, is published in a recordbreaking. Every new product or service on the market is obviously there to stay, not all will be able to handle the bloody competition and with time the underdogs will fade out of the market. Reviewing the blue ocean strategy universiteit twente. Value innovation value innovation places equal emphasis on value and innovation. In this summary, well give a synopsis of the key concepts, tools and tips from the book. With the aid of the four actions framework figure 4 and the. Build your blue ocean strategy with the four actions framework. The creation of blue oceans is about driving costs down while simultaneously driving value up for buyers.
Essay on blue ocean strategy a marketing book 1053 words. The strategy can transform a current product or idea or create something total new. A fouraction framework for blueocean innovation the. Use our free blue ocean 4 actions framework template to create, collaborate on. The blue ocean strategy tools four actions framework the four actions framework is used to add new values to the strategic canvas value curve. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. While this came in appendix a in the book, this is a good time to cover three industries with repeated blue ocean creation. The challenge of execution exists, of course, for any strategy. Blue ocean strategy is innovative, and it creates a. The company reduced the general feel of a circus, the risks that were involved in doing any act and too much fun. First and foremost on their list is a tool used to break out of competition and make competition irrelevant called the strategy canvas. 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. The structure can be created or recreated by the steps taken by players in the market.
Blue ocean strategy on jet blue case study by neil k. Blue ocean strategy expanded edition engels door chan kim. In this article you will learn how to make your competition irrelevant and have sales and profit. Blue ocean strategy formulation the four principles of. This tool is the central diagnostic and action framework for building a compelling blue ocean strategy. Mobiele website ebooks managementboek van het jaar managementboek academy. The process sounds very much like how bos is used every day in the business world because not surprisingly, people in practically any industry ask similar questions. 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. Four hurdles to strategy execution blue ocean strategy. Blue ocean strategy can be found on amazon blue ocean strategy.
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