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. Jan 12, 2020 with the aid of the four actions framework figure 4 and the eliminatereduceraisecreate grid, a new value curve can be drawn within the strategy canvas that breaks away from the industry value curve thereby creating a blue ocean. Beyond competing proven steps to inspire confidence and seize new growth hardcover september 26, 2017. The value curve model is a strategic planning and communication tool created by business academics w. If a company can identify what consumers currently value and then rethink how to provide that value, differentiation and low cost can both be achieved. The value curve model can be used to instantly show where the aspect of value is created within the organizations offerings of products and services.
It suggests that an organization should create new demand in an uncontested market space, or a blue ocean, rather than red ocean competition headtohead with other suppliers without differentiation. Blue ocean strategy including examples and pdf download. A value curve is a diagram which can be used to show instantly where value is created within an organizations products and services. 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 strategy for your learning business exploring. Blue ocean strategy example apple ipod blue ocean strategy example cirque du soleil. Blue ocean strategy book isnt suitable only for the business. After having dealt with the blue ocean metaphor as well as having clarified the concept of value innovation, the chapter moves on by describing the basic. Blue ocean strategies are a unique strategy that has a great deal to do with finding a new innovation, and so were going to take a look at how innovations are revealed in a blue ocean strategy. There are a range of tools that can be used in formulating blue ocean strategy, all of which are laid out in the megabestselling book blue ocean strategy.
Over my years of working with clients on strategy formulation ive frequently. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. Based on a study of 150 strategic moves spanning more than 100 years across 30 industries, the authors argue that lasting success comes not from battling competitors but from creating blue oceansuntapped new market spaces ripe for growth. If you are going to create a blue ocean from within a red ocean the key tool to use is a value curve. Pdf blue ocean strategy download full pdf book download. The strategy canvas gets you to focus on bigpicture strategic items, rather than getting mired in numbers, spreadsheets, and incremental improvements. The blue ocean strategy argues that consumers dont have to choose between value and affordability. Note that while drawing a new value curve, both differentiation and low cost have been taking into account. Exploring the blue ocean strategy biashara leo digital. 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. A blue ocean strategy the first question the value curves answer is whether a business deserves to be a winner. 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. Study 74 terms mangt 595 exam 2 flashcards quizlet.
The value curve shows graphically the way the company or the industry configures its consumer offering. Importantly, value innovation defies one of the most commonly accepted dogmas of competitionbased strategy the value cost tradeoff. Chan kim and renee mauborgne in their book titled blue ocean strategy. Blue ocean strategy and new business models in the food. It will show you what it takes to shift from bloody competition to new markets. The book is intended for all businessmen from various industries, those eager to learn new ways, techniques, methods, and strategies that are not only beneficial in the business world but also in other aspects of life. 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. Buy blue ocean strategy, expanded edition revised ed. This, the authors refer to as the cornerstone of the blue ocean strategy. Framework to reconstruct buyer value elements in crafting a new value curve. Companies should instead look for new market space and ways to reinvent the industry. Eliminatereduceraisecreate grid errc grid blue ocean.
The blue ocean strategy concept was introduced by chan kim. Figure 2 value innovation blue ocean strategy, 2015. When these four questions are answered, you will then be able to come up with a new value curve to unlock your companys very own blue ocean. Before we dive into blue ocean strategy examples, lets get clear on what a. With the aid of the four actions framework figure 4 and the eliminatereduceraisecreate grid, a new value curve can be drawn within the strategy canvas that breaks away from the industry value curve thereby creating a blue ocean. He is the coauthor, along with renee mauborgne, of the book blue ocean strategy. It shows how a new blue ocean strategy creates a unique value curve, focusing on values critical to customers at the expense of lessimportant factors. After having dealt with the blue ocean metaphor as well as having clarified the concept of value innovation, the chapter moves on by describing the basic analytical tools and frameworks that characterize the blue ocean strategy. The first part presents key concepts of blue ocean strategy, including value innovation the simultaneous pursuit of. May 24, 2011 if you are going to create a blue ocean from within a red ocean the key tool to use is a value curve. Sometimes they even create new factors, thereby changing the industrys. 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 seminal book blue ocean strategy has sold over 4 million copies globally and is in print in 46 languages.
How to create uncontested market space and make the competition irrelevant by chan kim and renee mauborgne. The value curve model strategy tools training from. It pushes companies not only to ask the questions posed in the four actions framework but also to act on all four to create a new value curve or strategic profile, which is essential to unlocking a new blue ocean. How to create blue oceans using value curves arif harbott. Achetez et telechargez ebook blue ocean strategy, expanded edition. Chan kim and renee mauborgne, professors at insead, back in 2004. One of my favorite business books is called blue ocean strategy, written by w. Create a new market space through innovating on the value you give to the customer. The value curvea graphic depiction of the way a company or an industry configures its offering to customersis a powerful tool for creating new market space. How to create uncontested market space and make the competition irrelevant, w. A good and concise book on using strategy to unlock new demand in blue ocean and making competition irrelevant, instead of competing in existing market space of red ocean. Blue ocean strategy powerpoint templates present better. The term is coined from the book blue ocean strategy penned by w.
Apr 03, 2010 value innovation the cornerstone of bos value innovation places equal emphasis on value and innovation. In this article you will learn how to make your competition irrelevant and have sales and profit. The four actions framework is used to add new values to the strategic canvas value curve. The value curve model can be used to instantly show where the aspect of. The authors use the metaphor of the blue ocean as a direct contrast to red oceans.
This analytic tool complements the four actions framework. Chan kim and renee mauborgne, professors at insead. Jul 17, 2018 when these four questions are answered, you will then be able to come up with a new value curve to unlock your companys very own blue ocean. It was expanded upon in their bestselling 2005 book, blue ocean strategy. The value curve is a graphic depiction of the way a company configures its offering to customers. Written by the business worlds new gurus, blue ocean strategy continues to. Value innovation the cornerstone of bos value innovation places equal emphasis on value and innovation. Next up is the uniquely brilliant example of cirque du soleil, the legendary entertainment company that performs in over 300 cities for more than 150 million spectators in a world where circuses are. Drawing on more than a decade of new work, kim and mauborgne show you how to move beyond competing, inspire. May 31, 2016 in this book summary of blue ocean strategy, well outline the key concepts, tools and tips from the book to help you create uncontested market space and make your competition totally irrelevant. First of all, the concept is really formed out of a book by kim and mauborgne, who wrote this book on blue ocean strategy a number of years ago. Sep 17, 2015 3 stocks that followed blue ocean strategy.
What is the blue ocean strategy the term blue ocean was coined by two professors w. How ikea created a new market henning wenzel andreas forster term paper business economics offline marketing and online marketing publish your bachelors or masters thesis, dissertation, term paper or essay. Blue ocean strategys four actions framework poses four central questions that. Chan kim and renee mauborgne have created a comprehensive set of analytic tools and frameworks to create blue oceans of new market space. It is a simple, visual means of testing whether your strategy is different enough from your competitors to be workable, and to help you to compare your strategy against those of other major industry players. In this article, we will look at 1 what is a blue ocean strategy. The eliminatereduceraisecreate errc grid developed by w. Blue ocean strategy pursues differentiation while lowers cost. 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. Through good real life examples of companies teaches you the importance of value innovation over technology innovation. When expressed through a value curve, an effective blue ocean strategy like. Jul 16, 2015 in this article, we will look at 1 what is a blue ocean strategy. It is drawn by plotting the companies offering relative to other alternatives based on key success factors in the industry.
Nov 14, 2008 blue ocean strategy is a value innovation strategic move that opens up new uncontested market, creates new demand, makes the competition irrelevant and helps a company to generate more revenue than competitors that focus narrowly on the existing crowded market. Blue ocean strategy available for download and read online in other formats. Feb 03, 2015 the premise on which the blue ocean strategy thesis is built, is a simple one. Value innovation value innovation is created in the region where a companys actions favorably affect both its cost structure and its value proposition to. The strategy canvas is a central diagnostic tool and an action framework of blue. Along with the theory, the book presents tools and frameworks to help an. Free blue ocean strategy powerpoint templates now that youve done the hard work of identifying your blue ocean strategy, its time to present it to top management. Blue ocean strategy is a powerful framework for finding new business opportunities. The strategy canvas is a central diagnostic tool and an action framework of blue ocean. It is thus a powerful tool to create new market spaces blue ocean strategy. But its not always clear how to create a blue ocean strategy for yourself.
Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group. To create a new value curve, the blue ocean strategy has four key questions that question the strategic logic and business model of the sector. Blue ocean strategy presents a systematic approach to making the competition irrelevant and. When a companys value curve, or its competitors, meets the three criteria that define a good blue ocean strategyfocus, divergence, and a compelling tagline that speaks to the marketthe company is on the right track. How to create uncontested market space and the make. The concept was further expanded in their bestselling book of 2005, blue ocean strategy. The graphic below done with the following blue ocean excel template illustrates nintendos wii strategy and is almost selfexplanatory. Note that while drawing a new value curve, both differentiation and low cost.
Value innovation is a new way of thinking about and executing strategy that results in the creation of a blue ocean. Creating new market space requires a different pattern of strategic thinking. This is done through detailed description of six reconstruction. Chan kim and renee mauborgne, develops and explains how to beat the competition by reaching beyond it into new unexplored markets. The value curve model visualises products comparisons which, in an increasingly competitive environment, helps product managers face the challenge of finding ways to differentiate their products click to tweet value curve case study. The basic component of our strategy canvas, the value curve, is a tool we. The misconception that blue ocean strategy is about new technologies. The misconception that blue ocean strategy and differentiation strategy are synonymous. Find all the books, read about the author, and more. Value innovation is a new way of thinking about and executing strategy that results in the creation of a blue ocean and a break from the competition.
Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking away from the. Now, 12 years later, the authors offer an exciting new book that. How to create uncontested market space and make the competition irrelevant at. The creation of blue oceans is about driving costs down while simultaneously driving value up for buyers. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Blue ocean strategy is the most successful book on business. How are innovations revealed in a blue ocean strategy. This blog article is a overview of some of the key points of the book by w.
Chan kim and renee mauborgne is a simple matrix like tool that drives companies to focus simultaneously on eliminating and reducing, as well as raising and creating while unlocking a new blue ocean. The belief that to create a blue ocean, you must be first to market. It opens up new possibilities that are not available to organizations operating within the existing costvalue structure. In effect, blue ocean strategy involves marketcreating innovation. Chan kim and renee mauborgnes articles on blue ocean strategy, all in one place. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. A value curve or strategic profile is the graphic depiction of a companys. The misconception that blue ocean strategy is a lowcost strategy that focuses on low pricing.
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