Blue ocean strategy is the 2015 update to the classic business strategy text of the same name originally published in 2005 the text offers a practical handbook to. A blue ocean strategy posits that when a customer changes the purpose of purchasing, a new market is created for example, and individual may purchase cloths of a vehicle for its functional purpose if that individual changes purchasing habits based upon aesthetics or fashion, there is a new customer market. In 2005, blue ocean strategy, expanded edition: how to create uncontested market space and make the competition irrelevant, a book by professors w chan kim and rénee mauborgne, launched a.
The strategy includes a variety of analytic tools and frameworks to help you distance yourself from this red ocean of competitors and create a blue ocean of undisturbed market space where it is possible to operate without competition. Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group 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 latest tweets from blue ocean strategy (@blueoceanstrtgy) #blueoceanshift and #blueoceanstrategy are worldwide business strategy bestsellers, helping you to move beyond competing and start creating your #blueocean.
The reason is that blue ocean strategy creates considerable economic and cognitive barriers to imitation for a start, adopting a blue ocean creator's business model is easier to imagine than to do. Blue ocean strategy has sold over 36 million copies, is being published in a record-breaking 44 languages, and is a bestseller across five continents kim and. Blue ocean strategy, expanded edition: how to create uncontested market space and make the competition irrelevant - kindle edition by w chan kim, renée a mauborgne. Blue ocean strategy is a marketing theory in which a business enters a market that has little or no competition the strategy focuses on moving away from an existing. Blue ocean strategy order description 1 article summary 2 blue ocean strategy a list of related materials, with annotations to guide further exploration of the article's ideas and applications 11 further reading competing in overcrowded industries is no way to sustain high performance.
Blue ocean strategy is the marketing theory that the business universe consists of two kinds of markets: red oceans and blue oceans the concept was pioneered in a. Summary of the first four chapters of the international bestseller blue ocean strategy made by group d of the minor global trendwatching 2015. A strategy canvas is the most fundamental tool used in the blue ocean strategy framework it is designed to give you an immediate snapshot of how your business/product/service stacks up against the competition. Remember, the whole idea of blue ocean strategy is to have high value at low cost if you are doing that, how can anyone compete with you all the would-be competitors fall by the wayside.
What are the blue ocean strategy six paths kim and mauborgne argue that most organizations tend to look only within their specific industry and customer base when developing strategy - a practice that is not likely to lead to breakthroughs. The blue ocean approach is based upon the concept of value innovation which was also introduced by the authors of the blue ocean strategy, kim and mauborgene the concept seems to go against all. As an integrated approach to strategy, blue ocean strategy shows how to align the three strategy propositions - value, profit, and people - to ensure your organization is aligned around your new strategy and that it creates a win for buyers, the company, and for employees and stakeholders. Blue ocean strategy, outlines the processes of removing the fight for competitive advantage and the battle for differentiation typical of many corporate strategies share this posted by dr sarah layton in blue ocean strategy on april 21, 2009.
This is a workshop presentation developed by kb yip and ys lieu for a learning institution it can be easily customized to suit the needs for other organizati. Learn more about the blue ocean strategy model to understand that companies should not engage in a competitive struggle but focus on uncontested markets. The blue ocean strategy suggests that there is a 3rd option, which is creating a new market category when you are the only player (at least for a while) 1 blue.
Blue ocean is a slang term for the uncontested market space for an unknown industry or innovation coined by professors w chan kim and renee mauborgne in their book blue ocean strategy: how to. To understand red ocean strategy let us begin by defining blue ocean strategy blue ocean strategy is where a company creates a completely new market space (or market category. Start studying blue ocean strategy learn vocabulary, terms, and more with flashcards, games, and other study tools.