Aim of this dissertation is to investigate whether eataly, the largest wine and food marketplace of the world, entered a blue ocean via business model innovation. Chan kim at the panasonics crossvalue innovation forum 2018 in tokyo. To make your life easier, you can download these free templates that have been made especially for blue ocean strategy presentations. A crucial tool in this odyssey is the fouractions framework. Four actions framework of blue ocean applied to jet blue 1. The blue ocean strategy framework has evolved from value.
Then the blue ocean practical introduction course is right for you. 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. Pdf impact of blue ocean strategy on organizational. See standard industrial classification manual 1987 and north amer. A fouraction framework for blueocean innovation the globe. Based on a study of 150 strategic moves spanning more than 100 years. In the prior book the tools were described, but this book follow up with instructions on sequencing and use. 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. 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.
Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. How to create uncontested market space and make the competition irrelevant, w. The concept of blue ocean is based on the idea that the business universe is made up. Remember what the product that company delivers is all about. This blog article is a overview of some of the key points of the book by w. Public sector application and research, including the application of blue ocean shift, blue ocean strategy, and blue ocean leadership to governments and nonprofits. This study is based on the pros and cons of the blue ocean strategy bos that offers users a framework for creating uncontested market space and diverts the views from the current competition to. Mar 15, 2014 four actions framework of blue ocean applied to jet blue 1. In 2019, chan kim and renee mauborgne were named the worlds most influential business thinkers by thinkers50. The strategy canvas is a central diagnostic tool and an action framework of blue. 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.
Social sector application and research, including such topics as how blue ocean strategy can be applied in the developing world to mitigate poverty and improve education and health. 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 formulation the four principles of. Sarah layton in blue ocean strategy on july 6, 2009. Pdf neither the industries nor the companies are doing all smart. The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. The blue ocean strategy and shift promote a fresh look at innovation webwire,japan to achieve high growth, organizations need to focus on noncustomers and capturing new markets instead of competing among crowds of challengers, advises w. The text offers a practical handbook to business students and entrepreneurs who wish to rise above the fray of the competition, become pioneers in previously uncharted market territory, and gain access to impressive growth opportunities and an untapped customer base. The premise of the book is that companies can succeed by creating. Using key blue ocean tools for strategy rethinking of a sme.
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. 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. Impact of blue ocean strategy on organizational performance. It was built on the notion of creating new markets where competition is irrelevant and the opportunity to grow and be profitable is unlimited. It is being published in a recordbreaking 44 languages and is a w. The four actions framework aids in eliminating the tradeoff between.
The basic strategy questions, swot analysis, porters 5 forces of competition, burgelmans strategy dynamics model, porters value chain, core competencies and resourcebased view, nonaka and takeuchis knowledge spiral, mckinseys 7s framework, scenario planning, ansoffs growth grid, bcgs product portfolio matrix, kim and mauborgnes blue. Blue ocean strategy as a tool for improving a companys marketing function. This allows you to understand where the competition is currently investing, the factors the industry currently competes on in products, service, and delivery, and what. 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. 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. An introduction to blue ocean strategy mba knowledge base. Jul 16, 2015 the blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. The text offers a practical handbook to business students and entrepreneurs who wish to rise above the fray of the competition, become pioneers in previously uncharted market territory, and gain access to impressive growth opportunities and an. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Blue ocean strategy chapter 1 4 the four action framework chapter two. Professor of mis school of business administration gonzaga university spokane, wa 99258 usa.
Blue ocean strategy introduces analytical tools to minimize risk. The four actions framework is used to help create value innovation and break the valuecost trade. This study focuses on kim and mauborgne four action framework tool of blue ocean strategy implemented by. What is blue ocean strategy about blue ocean strategy. The six paths framework in formulating blue ocean strategy. The structure can be created or recreated by the steps taken by players in the market. Made by group d of the minor global trendwatching 2015. May 30, 2017 to join the free indie business book club, click here. Blue ocean strategy can be found on amazon blue ocean strategy. Strategy canvas four actions framework errc grid six paths framework pioneer. Chan kim and renee mauborgne is used to reconstruct buyer value elements in crafting a new value curve or strategic profile. All in all, blue ocean strategy is a book worth reading.
Value innovation strategy competes in an uncontested market space. They assert that these strategic moves create a leap in value for the company. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. Blue ocean strategy and sustainability for strategic management. 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. Summary of the first four chapters of the international bestseller blue ocean strategy. 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. There is ample opportunity for growth that is both profitable and rapid. In a blue ocean you change the playing field of strategy.
Chan kim and renee mauborgne in the indie business book club. Four actions framework of blue ocean applied to jet blue. About the blue ocean 4 actions framework template who created blue ocean 4 actions template. The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. The fouractions frameworkon blue ocean strategy to reduce, create, raise and eliminate industry practices to create a blue ocean fromthe industry red ocean. In their 2017 new york times bestselling book, blue ocean shift, kim and.
It exposes just how similar the players strategies look to buyers and reveals how. Four action framework eliminatereduceraisecreate example. The four actions framework and the eliminatereduceraisecreate grid are almost a straightforward stepbystep strategy which offers an answer to all four parts of the marketing mix. Pdf blue ocean strategy as a tool for improving a companys. Sep 24, 2017 blue ocean strategy requires a different mindset. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. Jul 28, 2018 the strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. Blue ocean strategy is a landmark idea founded by w.
Cirque du soleil is one of those examples they used to show the relevance of blue ocean strategy. 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. Chan kim, renee mauborgne, blue ocean strategy 2006 15. 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. 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.
Oct 09, 2017 a four action framework for blue ocean innovation. 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 bestseller across five continents. Blue ocean strategy 1creating blue oceans 3 2 analytical tools and frameworks 23 part two. The strategy canvas is both a diagnostic and an action framework for building a. It captures the current state of play in the known market space. 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.
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 ocean strategy is the 2015 update to the classic business strategy text of the same name originally published in 2005. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. Blue ocean strategy on jet blue case study by neil k. Formulating blue ocean strategy 3reconstruct market boundaries 47 4focus on the big picture, not the numbers 81 5reach beyond existing demand 101 6 get the strategic sequence right 117 fmkim. Blending developments into one advancement which is blue ocean is a wow factor of this book. A good blue ocean strategy has items in each of the four grids. Blue ocean strategy and new business models in the food.
Effective blue ocean strategy should be about risk minimization and not risk taking. Value innovation strategy canvas four actions framework six paths. 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. Chen, information systems theory and practices blue ocean strategy. The blue ocean strategy four actions framework also called eliminate reduce raise create grid errc grid is a complementary tool to the strategy canvas. Achieved via the delivery of features that have a highest marginal benefit to customer needs. 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 and the four actions framework. Chen, information systems theory and practices red ocean vs.
The strategy canvas the strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. Blue ocean strategy is a book published in 2005 and written by w. How to create uncontested market space and make the competition irrelevant, a book by professors w. Sep 26, 2016 the strategy canvas provides a highly visual tool to help look at future options. 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. List the factors the customer cares about, and current dimensions of competition. 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. 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. Blue ocean strategy powerpoint templates present better. To illustrate their ideas, chan kim and mauborgne used several reallife examples in their book.
The strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. Four actions framework blue ocean strategy shortform blog. First and foremost on their list is a tool used to break out of competition and make competition irrelevant called the strategy canvas. Chan kim and renee mauborgne, professors at insead. 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. His book blue ocean strategy, coauthored with renee mauborgne, has sold 3. Bos four actions framework errc grid innovating now. This tool is the central diagnostic and action framework for building a compelling blue ocean strategy. Blue ocean strategy has sold over 4 million copies, is being published in a recordbreaking 46 languages, and is a bestseller across five continents. Chan kim and renee mauborgne in their bestselling book of the same name. Blue ocean strategy including examples and pdf download.
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