In this article you will learn how to make your competition irrelevant and have sales and profit. We believe that blue ocean strategy will send you on the right path towards creating your own uncontested space. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Observe the distinct advantages and alternatives products and services. See which factors you should eliminate, create, or change. There is only one goal and there are many ways to achieve it. Blue ocean studio, which is available for a 30 days free trial here. Blue ocean strategy tools a diagnostic tool for building a compelling blue ocean strategy it captures the current state of play in the known market space allow you to understand. Blue ocean strategy for your learning business exploring. Red ocean strategy blue ocean strategyvalue innovation strategic focus choosing attractive industries and building competitive positions within them redefining industry boundaries and creating new market space strategic goal outperforming the competition making the competition irrelevant analytic tools porters 5 forces value chain generic. The six principles of blue ocean strategy formulation principles risk factor each principle attenuates reconstruct market boundaries focus on the big picture, not the numbers reach beyond existing demand get the strategic sequence right search risk planning risk scale risk business model risk evaluation. Each tool has a slide for the description and application within the strategy analysis. Using key blue ocean tools for strategy rethinking of a. I am trying to move a red ocean company to a blue ocean company.
Expand your horizons with blue ocean strategy youtube. The six paths framework in formulating blue ocean strategy. Blue ocean strategy powerpoint template is a professional and modern presentation for the description or explanation of the blue ocean strategy theory. 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. The teams objective is to visualise the current industry and the industry players, then to develop a blue ocean strategy using the bos tools. This helps them to move out of red oceans and create blue oceans. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. 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. Welcome to blue ocean strategy were thrilled to have you on board. This blog article is a overview of some of the key points of the book by w. Blue ocean strategy powerpoint template slidemodel.
Apr 25, 2018 to move forward with the model, and thus the companys new blue ocean strategy, the use of the strategic canvas can be one of the most crucial aspects of the planning of the strategy. In the seven years since you wrote the book, have you seen companies take the strategy to heart. It is a roadmap to move you, your team, and your organization to new heights of confidence, market creation and growth. The strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. The six paths framework is a core strategic tool used in blue ocean strategy. In this series, though, i will focus on another set of powerful tools.
Value innovation value innovation is created in the region where a companys actions favorably affect both its cost structure and its value proposition to buyers. Pioneermigratorsettler map portfolio mapping blue ocean. Pdf using key blue ocean tools for strategy rethinking of. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of strategy and international management at insead. To create such a strategy, there are a set of analytical tools and frameworks used in formulating and executing it. However, the blue ocean strategy is still little known and rarely used for. Six paths to moving from red to blue ocean best practices. Learn what the expanded edition of blue ocean strategy written by globally preeminent management thinkers chan kim and renee mauborgne can do for you.
Specifically, well discuss the blue ocean strategy six paths. The namesake blue ocean means untouched waters, or no competition whereas red ocean is a market in which competition is at each others throats, spilling blood therefore red ocean. Bos six path framework powerpoint slide slidemodel. At the center of the slide is a table showing the framework. Extracting the key insights from the six paths market exploration blue ocean shift. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. The first and foremost tool in value innovation and creation of blue ocean strategy is the strategy canvas. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. Headtohead competition blue ocean creation industry. Six paths framework blue ocean shift blue ocean strategy. Chan kim and renee mauborgne heres the strategy create new markets. They must systematically look across these concepts by considering alternative industries, strategic. Blue ocean strategy how to create uncontested market space and make the competition irrelevant boston.
Blue ocean strategy has helped numerous companies and organisations across the globe to create new market space and achieve pro. In fact, blue ocean strategic moves have taken place throughout the history of industry evolutions. Blue ocean strategy is a book published in 2005 and written by w. His book blue ocean strategy, coauthored with renee mauborgne, has sold 3. It can be used as a tool to break competition and reconstruct market boundaries. Made by group d of the minor global trendwatching 2015. Companies have to apply the six paths framework to their current business strategy. The fish market will need to follow the six path strategy to. Whenever a blue ocean is created, competition is rendered. Blue ocean strategy is a growth strategy framework focused on the idea of creating an uncontested market spacei. 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. Six key areas where we look beyond current boundaries to find free market space. Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to.
Learn vocabulary, terms, and more with flashcards, games, and other study tools. Pdf blue ocean strategy how to create uncontested market. Basically, the direction of strategic games is the seizure of land, that is, obtaining control over the territory. How to build a sustainable blue ocean insead knowledge. Optionally, you can download a convenient pdf with all six parts of this series, just click the. Chan kim en renee mauborgne van the blue ocean strategy institute van insead. The six principles of blue ocean strategy formulation principles risk factor each principle attenuates reconstruct market boundaries focus on the big picture, not the numbers reach beyond existing demand get the strategic sequence right search risk planning risk scale risk business model. The objectives may be different, the main thing that unites strategy is a stepbystep action. Study 31 terms blue ocean strategy flashcards quizlet. Chan kim and renee mauborgne, professors at insead. Go into field to explore the six paths to create blue ocean.
Reviewing the blue ocean strategy university of twente student. Blue ocean strategy how to create uncontested market. Blue ocean strategy is about value innovation in general, in which no emphasis is put on reducing the speed to market. This strategy targets six principles that can be used in every organization so that they can arrive at a successful development and fulfilment of new markets. Go into the field to explore the six paths to creating blue oceans. To move forward with the model, and thus the companys new blue ocean strategy, the use of the strategic canvas can be one of the most crucial aspects of the planning of the strategy. Chan kim and renee mauborgne allows managers to address the search risk many companies struggle with. Blue ocean strategy and why you should be using it. An introduction to blue ocean strategy mba knowledge base. Using key blue ocean tools for strategy rethinking of a sme. Burberry blue burberry, banana republic gap old navy 3. This canvas helps you identify commercially compelling blue oceans by reconstructing market boundaries. The premise of the book is that companies can succeed by creating. This chapter f i g u r e 14 the six principles of blue ocean strategy formulation principles risk factor each principle.
It enables them to successfully identify out of the haystack of possibilities that exist, commercially compelling blue oceans by reconstructing market boundaries. Blue ocean studio you can access a free trial here. To aid you in completing this step and all the other steps in. Blue ocean strategy actionable tools and frameworks. Summary of the first four chapters of the international bestseller blue ocean strategy. I am working with the world famous pike place fish market in the fish and seafood industry. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was. Four hurdles to strategy execution blue ocean strategy. Blue ocean strategy chapter 14 the four action framework chapter two. There are six basic approaches to reconstruct market boundaries, also known as six paths framework. The diagnostic framework is somewhat of a situational analysis. Like the blue ocean, it is vast, deep, powerful, in terms of profitable growth, and infinite.
The bos six path framework powerpoint slide is featured on the slide design. Look across alternative industries,net jets, docomo. Blue ocean strategy formulation the four principles of. Applying the six paths framework to reconstruct market. Blue ocean entrepreneurship competition recommended for you. The blue ocean strategy offers users a framework for creating uncontested market. 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. Over my years of working with clients on strategy formulation ive frequently used kim and mauborgnes strategy canvas as a powerful tool for helping organizations better understand their market position. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. Summary capter 1 4 of blue ocean strategy by lauri di. The six paths framework in formulating blue ocean strategy are 1 look across alternative.
Blue ocean strategy tools analysis essay example for free newyorkessays database with more than 65000 college essays for studying. Participants apply blue ocean strategy concepts, methodologies and tools such as the strategy canvas and six paths framework to reconstruct market boundaries and unlock new demand. The canvas can be split between a diagnostic framework and an action framework. Value innovation value innovation is created in the region where a companys actions favorably affect both its cost structure and its value proposition to. These are designed to challenge conventional thinking. Blue ocean strategy how to create uncontested market space. Strategy canvas of blue ocean strategy canopus business. Blue ocean strategy including examples and pdf download. This framework is very innovative, as its principles challenge the conventional business strategy principles of fighting competitors headon. 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.
Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. 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. Blue ocean strategy for your learning business exploring the 6. 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. Value innovation strategy competes in an uncontested market space. The objective of blue ocean strategy is to make competition irrelevant by creating a new value curve for both customers and the company itself. Blue ocean strategy case study service nsw 3 1 introduction blue ocean strategy1 has been used extensively to transform the public sector around the world at a local, state and national level.
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