There are many pros and cons of this strategy the main and considerable advantage of this strategy is the first mover benefit in terms of market penetration where the companies. To seize new profit and growth opportunities, they also need to create blue oceans. An introduction to blue ocean strategy mba knowledge base. How to create uncontested market space and make the competition irrelevant by w. Rather than competing within the confines of the existing industry or. Apr, 2016 this strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. Chan kim and renee mauborgne, published by harvard business school press, boston, massachusetts, 2005, isbn 97815996192. A global bestseller and one of the best business strategy books available, blue ocean strategy challenges everything you thought you knew about strategic. 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. This is a book summary i have written originally as part of the assignment for my harvard innovation and entrepreneurship class. Chan kim and renee mauborgne in the indie business book club. The authors of the bestselling book blue ocean strategy have spent over a decade exploring that question. 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. Furthermore the blue ocean strategy was awarded with.
Blue ocean strategy, page 47 based on their research, kim and mauborgne found six approaches to reconstructing market boundaries which, collectively, are known as the six paths framework. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of. It is being published in a recordbreaking 44 languages and is a w. Inside business 360,united states if you are still wondering whether to pick up a copy of blue ocean strategy, we hope this article will convince you. 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. Blue ocean strategy including examples and pdf download. Theyve progressed every year since to 15th in 2005. Blue ocean strategy is the most successful book on business.
Everyday low prices and free delivery on eligible orders. Blue ocean strategy is a new way of thinking, a new strategic mindset, a bold new path to winning the future. Blue ocean strategy is a value innovation strategic move that opens up new uncontested market, creates new demand, makes the competition. How to create uncontested market space and make the competition irrelevant is a book that shows how companies can create their own unique niches. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. Essay on blue ocean strategy a marketing book 1053 words.
Blue ocean strategy blue ocean strategy challenges nokia to break out of the red ocean of bloody competition by creating uncontested market space that makes the competition irrelevant. Competition is in every market, you cant escape it nor can you run away from it. How to create uncontested market space and make the competition irrelevant book online at best prices in india on. The strategy canvas provides a highly visual tool to help look at future options. A lot has been written about it and i would have said practically everything had been said about it until i looked up the book on amazon to see the current price. Inside business 360,united states if you are still wondering whether to pick up a copy of blue ocean strategy, we. These visual frameworks and tools are designed to not only. 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. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. Chan kimand renee mauborgne, with an objective to determine the strategy of flipkart. Sep 26, 2016 the strategy canvas provides a highly visual tool to help look at future options. Buy blue ocean strategy, expanded edition revised ed.
Blue ocean strategy is the most successful book on business masterplanning 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. The first principle of blue ocean strategy is to reconstruct market boundaries to break from the competition 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. The insead blue ocean strategy open enrolment programme is based on the groundbreaking work developed by insead professors chan kim and renee mauborgne. Furthermore the blue ocean strategy was awarded with the best business book of 2005. Based on 15 years of research, the authors used 150 successful strategic moves spanning 120 years of business history and across 30 industries to bring the blue. The premise of the book is that companies can succeed by creating. Value innovation value innovation is created in the region where a companys actions favorably affect both its cost structure and its value proposition to. Blue ocean strategy is a groundbreaking book on opening up uncontested markets. Buy blue ocean strategy book online at best prices in india on. In this article you will learn how to make your competition irrelevant and have sales and profit. Jul, 2018 for struggling businesses, mauborgne recommended the strategy canvas, which is featured in her and kims newest book, blue ocean shift.
But, lets first understand what is blue ocean and how it is different from red ocean strategy. The blue ocean strategy can be extremely rewarding, but can also be the most work intensive. Blue ocean strategy is the best way to stand out in a crowded market. Blue ocean strategy tells how to stand out from your competitors. The blue ocean strategy works to create an untapped marketplace outside of the traditional market boundaries. Implications for firm strategy and industry configuration. The blue ocean strategy reader meet your next favorite book. Blue ocean strategy blue ocean strategy introduction blue ocean strategy is a marketing book by w. Jan 14, 2015 blue ocean strategy is a new way of thinking, a new strategic mindset, a bold new path to winning the future. You may or may not agree with the central philosophy, but you will be inspired. Blue ocean strategy can be applied across sectors or businesses.
Summary of the book conventional business models are geared towards operating in the traditional market space. Achieved via the delivery of features that have a highest marginal benefit to customer needs. 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. Pros and cons of blue ocean strategy essay example. The blue ocean strategy book has been sold over 3,5 million times, was published in 43 languages and is a bestseller across five continents. Blue ocean strategy is a business strategy book, first published on february 3, 2005 by the harvard business school press. Value innovation strategy competes in an uncontested market space. Chan kim and renee maubourgne published a book, blue ocean strategy. Chan kim and renee mauborgne in their book blue ocean strategy. The metaphor defined in the book is that many companies compete with their rivals in bloody red oceans. 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. After reading the book, i can summarize the idea behind the blue ocean strategy in two main statements which are. One of the first shows was titled we reinvent the circus.
How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. Pros and cons of blue ocean strategy essay sample blue ocean strategy makes the competition irrelevant by creating a new market space where there is no competitions. Creating a blue ocean in indian retail ecommerce business. Chan kim and renee mauborgne, professors at insead.
How to create uncontested market space and make competition. Blue ocean strategy is a bad book, but it is not your usual bad book. Blue ocean strategy is a systematic approach to finding innovative, cost efficient, value adding, productmarket matches. Blue ocean strategy proposes that businesses can have more success by creating a blue ocean, rather than trying to compete in the red ocean the traditional market space that is filled.
The book succeeds in showing how businesses, can outdo their competitors. Chan kim and renee mauborgne 2006 blue ocean strategy has been described as a must read for all business students. Buy blue ocean strategy book online at low prices in india. Blue ocean strategy can be found on amazon blue ocean strategy. How to create uncontested market space and make competition irrelevant, is a market space that is undeveloped, and untapped by competitors. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking away from the competition. Comparative of red ocean and blue ocean the first highlighted case from the blue ocean strategy book is the cirque du soleil. Chan kim and renee mauborgne in their bestselling book of the same name. This blog article takes a look at what kind of roi some companies have achieved by implementing a blue.
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. The blue ocean strategy has been used by companies like cirque du soleil to completely redefine the industries they entered by turning the conventional industry boundaries on its head. Based on a study of 150 strategic moves spanning more than 100 years. What a company will do if it adopts a blue ocean strategy skills practiced making connections use understanding of the concept of a blue ocean strategy to identify its effects on a business. We need a different kind of mental make up to be in a saturated market. Its authors, insead professors w chan kim and renee mauborgne, continued their steady progress up the thinkers50 list, finishing second to christensen this year. May 14, 2020 in short you need to create your own blue ocean strategy. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. Reviewing the blue ocean strategy universiteit twente. A blue ocean is the complete opposite of the existing red oceans in the market that quickly drown a new company before they can gain success. 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. This blog article is a overview of some of the key points of the book by w. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. To join the free indie business book club, click here.
Jan 20, 2015 blue ocean strategy is the most successful book on business masterplanning 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. How to create uncontested market space and the make competition irrelevant 2005. This book brings the best of those articles together all in one place. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. The book mostly borrows from a range of over 140 strategic marketing moves within a period of over a century. Blue ocean strategy is a book published in 2005 and written by w. The seminal book blue ocean strategy has sold over 3. In short you need to create your own blue ocean strategy. Blue ocean strategy generally refers to the creation by a company of a new, uncontested market space that makes competitors irrelevant and that creates new consumer value often while decreasing costs. His book blue ocean strategy, coauthored with renee mauborgne, has sold 3.
This blog article takes a look at what kind of roi some companies have achieved by implementing a blue ocean strategy by w. Basing their studies on 150 strategic business moves that stretch over 300 years and 30. Blue ocean strategy is referred to a market for a product where there is no competition or very less competition. All in all, blue ocean strategy is a book worth reading. Their iconic and impactful books, blue ocean strategy and blue ocean shift, provide a systematic approach to making the competition irrelevant and tools any organisation can use to shift from. May 30, 2017 to join the free indie business book club, click here. Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new. 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. Essay on blue ocean strategy a marketing book 1053. Instead of dividing up existing and often shrinking demand and benchmarking competition, blue ocean strategy is about growing demand and breaking away from.