What is blue ocean strategy about blue ocean strategy. These competitors may possess a competitive advantage driven by cost, differentiation, or niche market strategies. Companies should instead look for new market space and ways to reinvent the industry. How to create uncontested market space and make competition irrelevant. But its not always clear how to create a blue ocean strategy for yourself. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. A marketcompeting strategy divides existing wealth between rival companies. 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. Two of these are red ocean and blue ocean strategies, which were introduced by w. Blue ocean strategy, expanded edition w chan kim, renee a. Covering topics none of your competitors are touching. In this 5 minute blog, ill tell you what the difference is between a red ocean vs blue ocean and how you can survive a red ocean and swim into a more profitable and audible blue one. This blog article is a overview of some of the key points of the book by w. Want more secrets and tricks like the blue ocean strategy.
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. 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. You must keep in mind that there is a deeper potential of the marketplace that hasnt been explored yet. Chan kim and renee mauborgne blue ocean strategy reader. In this summary, well give a synopsis of the key concepts, tools and tips from the book. While this came in appendix a in the book, this is a good time to cover three industries with repeated blue ocean creation. In other words, a blue ocean is a new, uncontested market space where the existing competition is irrelevant. How to create uncontested market space and make the competition irrelevant kindle edition by kim, 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 adalah strategi menciptakan ruang pasar baru yang belum termanfaatkan.
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. The blue ocean strategy which we boiled down to four steps is all about considering new approaches to make your blog unique by. The complete guide to blue ocean strategy blue ocean academy. To illustrate the difference between the blue ocean strategy and red ocean strategy, ive made an infographic that lucidly explains the 6 vital differences between a red ocean market and a blue ocean market. We will introduce the aspects of red ocean strategies that most of the companies use around the world, and then we will compare the advantages and disadvantages of using blue ocean strategies.
How to create uncontested market space and make the competition irrelevant kim, w. Looking at entire industries in this way allows you to tell over time whether an innovation strategy or a competitive strategy is best. And what we have been lacking is a roadmap to get there with tools and guidance anyone can apply. Blue ocean strategy is where a company creates a completely new market space or market category. Pdf blue ocean strategy download full pdf book download.
Its authors, insead professors w chan kim and renee mauborgne, continued their steady progress up the thinkers50 list, finishing second to christensen this year. Blue ocean strategy is a powerful framework for finding new business opportunities. How to create uncontested market space and make the competition irrelevant pdf by w. Whats different between blue ocean shift and the other. Red ocean strategy focuses on competing in the existing market space with the current firms.
The blue ocean strategy means that you find some aspect of your market that no one is doing, and try to dominate that, rather than fighting it out with other vendors in your space a red ocean strategy. How to create uncontested market space and make the competition irrelevant. As competition increases, prospects for profit and growth decline. Embraced by organizations and industries worldwide, blue ocean strategy is a global phenomenon that has sold over 4 million copies. By that we can see that there is a lot of interest by the business. Blue ocean strategy including examples and pdf download.
Essentially, they create new demand, leading to easy uncontested growth in sales and profits, and wider and deeper market opportunities in the unexplored space. Of course, the blue ocean approach to this model would call. The result of the competition is destruction, which draws the analogy of red blood in. See comparison between red and blue ocean strategies here in one simple table. So blue ocean strategy is about how can any company or organization break out of the red ocean of bloody competition or existing market space, which tends to. In contrast, blue ocean strategy creates new market spaces, creates new demand, and leads to profitable growth. How to use the blue ocean strategy to revitalize your blog. Blue ocean strategy displays an orderly way to deal with making the challenge unessential and traces standards and instruments any organization can use to make and catch their blue seas. Sarah layton in blue ocean strategy on april 21, 2009. Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. As market power has moved from companies to consumers, and global. Itu sebabnya kini hadir istilah baru yang disebut blue ocean strategy.
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. Blue ocean strategy, outlines the processes of removing the fight for competitive advantage and the battle for differentiation typical of many corporate strategies. It sold more than 4 million copies and has been translated into 44 different languages. Since, the industries are in a state of non existence, there is absolutely no relevance of peer. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy. History and background a video game console is just a computer that is made only. There is ample opportunity for growth that is both profitable and rapid. Most blue oceans are created from within red oceans by expanding existing industry boundaries.
It is about creating and capturing uncontested market space, thereby making the competition irrelevant. Like the blue ocean, it is vast, deep and powerful in terms of opportunity and profitable growth. How does blue ocean strategy differ from red ocean strategy. Refining your blue ocean strategy with helpful tools. A red ocean is a saturated market with industry competitors. Red ocean comprises of the existing industries in which most of the organizations fight with each other to make more profit. Before we dive into blue ocean strategy examples, lets get clear on what a. In this article you will learn how to make your competition irrelevant and have sales and profit.
Namun ternyata, kesuksesan sebuah perusahaan kini tidak lagi diukur dengan memenangi persaingan berdarahdarah di red ocean strategy. Download it once and read it on your kindle device, pc, phones or tablets. Companies develop uncontested market space rather than fight over a shrinking profit pool. A blue ocean strategy is based on creating demand that is not currently in existence, rather than fighting over it with other companies.
The concept of blue ocean strategies is new in the business world as it was. 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. Blue ocean vs red ocean business strategies duration. Blue ocean consists of the industries which are yet to be created and promises increased profit and growth in a healthy way. 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. A global bestseller and one of the best business strategy books available, blue. Red ocean strategy a super interesting topic for startups. A red ocean is a metaphor for a market full of competitors. 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.
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. Blue oceans denote all the industries not in existence today the unknown market space, unexplored and untainted by competition. Discussion blue ocean strategy versus red ocean strategy every blue ocean company would ultimately reach to the level of red ocean. My ocean is turning red updates on all cases and examples in the book, bringing. It is all about devising and acquiring the uncontested market forum by spawning a new demand. Why churches need blueocean strategies biblical leadership. These systems started to gain popularity in the 1970s with consoles that played only pong. For more details, do check out our complete book summary bundle, or get a copy of the book. Renee mauborgne of insead explains how a landmark idea is evolving. Based on a study of 150 strategic moves, spanning more than 100 years. Red oceans of vicious competition, why not move to the blue oceans where there was.
1503 208 664 54 1489 807 1479 754 128 673 255 924 669 520 538 311 192 1258 1102 442 236 897 453 597 1392 1069 995