4 actions of blue ocean strategy book

Jul 28, 2018 blue ocean strategy was coined by professors w. Blue ocean strategy formulation the four principles of. The first part presents key concepts of blue ocean strategy, including value. This tool is the central diagnostic and action framework for building a. Chan kim and renee mauborgne is used to reconstruct buyer value elements in crafting a new value curve or strategic profile. 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. 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. The strategy canvas the strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Blue ocean strategy the four actions framework to reconstruct buyer value elements in crafting a new value curve, blue ocean strategy has developed the four actions framework.

Blue ocean strategy including examples and pdf download. This blog article is a overview of some of the key points of the book by w. Achieved via the delivery of features that have a highest marginal benefit to customer needs. It is based on the view that market boundaries and industry structure are not a given and can be. Based on 15 years of research, the authors used 150 successful strategic moves spanning 120 years of business history and across 30 industries to. Sarah layton in blue ocean strategy on july 6, 2009. Aug 16, 2018 efforts to achieve popularity and recognition of your brand becomes a perfect engine for the progress of your company. This tool is the central diagnostic and action framework for building a compelling blue ocean strategy. Beyond competing proven steps to inspire confidence and seize new growth. The sequel to blue ocean strategy, blue ocean shift outlines a methodology to identify blue ocean opportunities. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure.

Jul 17, 2018 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 proposes that businesses can have more success by creating a blue ocean, rather than trying to compete in the red ocean. Blue ocean strategy ist eine methode zur entwicklung dauerhaft profitabler geschaftsmodelle aus dem bereich des strategischen managements. Blue ocean strategy has sold over 4 million copies, is being published in a recordbreaking 46 languages, and is a bestseller across five continents. 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.

Summary of the first four chapters of the international bestseller blue ocean strategy. To make your life easier, you can download these free templates that have been made especially for blue ocean strategy presentations. Once a blue ocean is discovered, management must clearly formulate the blue ocean strategy and take the actual actions to implement the new strategy. Sep 26, 2016 the strategy canvas provides a highly visual tool to help look at future options. How to create uncontested market space and the make competition irrelevant 2005. The rapid pace of innovation and change in recent years has led scholars and executives to search for an approach to strategy that is more dynamic than harvard professor michael porters classic five forces. Blue ocean strategy is the most successful book on business. Mauborgne nevertheless attack him head on, arguing that the five forces analysis is a formula for remaining in red oceans, where the sharks compete.

While the book is aimed primarily at large, traditional businesses, our book club members managed to scale some of the advice to fit our needs. 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. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. The first part presents key concepts of blue ocean strategy, including value innovation the simultaneous pursuit of differentiation and low cost and key analytical tools and frameworks such as the strategy canvas, the four actions framework and the eliminatereduceraisecreate grid. Oct 10, 2007 blue ocean strategy the four actions framework to reconstruct buyer value elements in crafting a new value curve, blue ocean strategy has developed the four actions framework. The misconception that blue ocean strategy is a lowcost strategy that focuses on low pricing. In a blue ocean you change the playing field of strategy. 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. Blue ocean strategy blue ocean strategy is a business strategy book published in 2005 by harvard business school publishing corporation in united state of america, it was written by w. May 26, 2015 summary of the first four chapters of the international bestseller blue ocean strategy. This book brings the best of those articles together all in one place. 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. Blue ocean strategy refers to innovation and development of products and services that have not been offered previously.

The idea, the thoughts, the progression of the book is simply amazingi profoundly prescribe this book to all the folks who need to have any kind of effect in their vocations. 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. The first part presents key concepts of blue ocean strategy, including value innovation the simultaneous pursuit of differentiation and low cost and key analytical tools and frameworks such as the strategy canvas and the four actions framework. Kim and mauborgne recommend that businesses consider what they call the four actions framework to reconstruct buyer value elements in crafting a new value. 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. Reaching a blue ocean is a great option to draw attention and create a big name. The four actions framework is used to help create value innovation and break the valuecost trade. Blue ocean strategy is referred to a market for a product where there is no competition or very less competition. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. Thinkers50 strategy award for best business book of the decade. Although blue oceans enable a firm to gain uncontested market space, it is only for a time that this is so. How to create uncontested market space and make the competition irrelevant, a book by professors w. Bos four actions framework errc grid innovating now. In 2019, chan kim and renee mauborgne were named the worlds most influential business thinkers by thinkers50.

Blue ocean strategys four actions framework poses four central questions that let companies break the valuecost tradeoff and create a blue ocean. They are professors of strategy at insead, one of the worlds top business schools, and codirectors of the insead blue ocean strategy institute in fontainebleau, france. 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. Theirs is not the typical business management books vague call to action.

Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. It is being published in a recordbreaking 44 languages and is a w. Blue ocean strategy can be found on amazon blue ocean strategy. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of. To join the free indie business book club, click here. Blue ocean strategy your name mkt421 due date instructor name blue ocean strategy a blue ocean is uncontested market space that does not exist now, but will in the future. Value innovation strategy competes in an uncontested market space. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. May 30, 2017 to join the free indie business book club, click here. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute.

The seminal book blue ocean strategy has sold over 3. One of the most successful efforts to do so is the book blue ocean strategy, by w. 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. An introduction to blue ocean strategy mba knowledge base. They are the recipients of numerous academic and management awards around the world. Effective blue ocean strategy should be about risk minimization and not risk taking. Chan kim and renee mauborgne in their book blue ocean strategy. Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group. 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. 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. The belief that blue ocean strategy is the same as innovation. Blue ocean strategy is a bad book, but it is not your usual bad book.

How to create uncontested market space and make competition irrelevant, is a market space that is undeveloped, and untapped by competitors. Chan kim and mauborgne have therefore constructed more frameworks that can help with this process like. 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. To break the tradeoff between differentiation and low cost and to create a new value curve, there are four key questions to challenge an industrys strategic logic and. The belief that to create a blue ocean, you must be first to market. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. 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. You may or may not agree with the central philosophy, but you will be inspired. All in all, blue ocean strategy is a book worth reading. With the aid of the four actions framework figure 4 and the. The misconception that blue ocean strategy and differentiation strategy are synonymous.

What is blue ocean strategy about blue ocean strategy. The structure can be created or recreated by the steps taken by players in the market. The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. 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. Framework that poses four central questions that let companies break the valuecost tradeoff and create a blue ocean. The premise of the book is that companies can succeed by creating. With this groundbreaking book, kim and mauborgneboth professors at. First and foremost on their list is a tool used to break out of competition and make competition irrelevant called the strategy canvas. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking.

Chan kim and renee mauborgne of the blue ocean strategy institute and professors at frances insead business school and cofounders of the value innovation. 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. 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. The simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. Blue ocean strategy powerpoint templates present better. In short, the whole book could be summed up in the very first chapter where value innovation is explained because value innovation is not the cornerstone of blue ocean strategy it is blue ocean strategy. Blending developments into one advancement which is blue ocean is a wow factor of this book. Aug 08, 2019 the first part presents key concepts of blue ocean strategy, including value innovation the simultaneous pursuit of differentiation and low cost and key analytical tools and frameworks.

Value innovation strategy canvas four actions framework six paths. It is about creating and capturing uncontested market space, thereby making the competition irrelevant. Recently i came across a new marketing gimmick word blue ocean strategy bos and i started grabbing the details and came to know there is a book titled blue ocean strategy how to create uncontested market space and make the competition irrelevant written by authors w. The global phenomenon, embraced by business worldwide and. His book blue ocean strategy, coauthored with renee mauborgne, has sold 3.

Blue ocean strategy is a book published in 2005 and written by w. In contrast, blue ocean strategy originated from a study that took place over 10 years and analyzed company successes and failures in more than 30 industries. Four actions framework blue ocean strategy shortform blog. Blue ocean strategy is the most successful book on business masterplanning. Made by group d of the minor global trendwatching 2015. 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. 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. Together, they wrote a bestselling book blue ocean strategy. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. The strategy canvas provides a highly visual tool to help look at future options. Chan kim and renee mauborgne in the indie business book club.

The economist a great read for any leader looking to get a real edge in business and establish a real competitive advantage in the market. 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. Each chapter is extremely in depth and contains real actions steps to take, and includes a wealth of flow charts and graphs which are not only helpful, but easy to understand. Companies should instead look for new market space and ways to reinvent the industry. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Chan, mauborgne, renee, mauborgne, renee a download it once and read it on your kindle device, pc, phones or tablets. Jan 12, 2020 once a blue ocean is discovered, management must clearly formulate the blue ocean strategy and take the actual actions to implement the new strategy. Along with the complexity of implementing blue ocean strategy, there will be a great margin too. The first part presents key concepts of blue ocean strategy, including value innovation the simultaneous pursuit of differentiation and low cost and key analytical tools and frameworks. Some strategic planning models are based on theories that dont quite pan out during gotomarket executions. Based on 15 years of research, the authors used 150 successful strategic moves spanning 120 years of business history and across 30.

In the prior book the tools were described, but this book follow up with instructions on sequencing and use. Sep 24, 2017 in 2005, blue ocean strategy, expanded edition. Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. While this came in appendix a in the book, this is a good time to cover three industries with repeated blue ocean creation. Jul 16, 2015 the blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. 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. The blue ocean strategy four actions framework also called eliminate reduce raise create grid errc grid is a complementary tool to the strategy canvas. Blue ocean strategy can be applied across sectors or businesses.