Canopus business management group we empower your organization. The six pathways included in the blue ocean strategy is a framework of six pathways to succeed in a blue ocean market. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of. An introduction to blue ocean strategy mba knowledge base. Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group.
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 six pathways included in the blue ocean strategy is a. Feb 01, 2016 strategy canvas key competing factors offeringlevel 23. Blue ocean strategy how to create uncontested market. Conventional wisdom asserts that the greater the change, the greater the resources and time you will need to. 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. Barriers to imitation adopting a blue ocean creators business model is hard thing to do. 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. Tru group inc strategic planning consultants white paper download. What is the six paths framework, and how can it be used to reconstruct market boundaries in order to break from competition and create blue oceans.
Typically, companies in the red ocean pursue incremental improvements for customers through either low cost or differentiation. Following are the six paths framework involved in formulating the blue ocean strategy. Chan kim and renee mauborgne, professors at insead. In this paper, i will provide an analysis of all of the blue ocean strategy tools and make suggestions to assist country club x in exiting the red ocean of headtohead competition and move towards a blue ocean of uncontested market space. Deputy manager marketing, jain irrigation systems ltd. To understand how an organisation achieves alignment to produce a highperforming and sustainable blue ocean, consider the case of the uk charity, comic relief. To break from competition, a organization has to reconstruct the market boundary which is the first and foremost principle in creating blue ocean strategy. Sep 24, 2017 blue ocean strategy requires a different mindset.
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. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. In this article you will learn how to make your competition irrelevant and have sales and profit. Blue ocean idea index boi other companies companies should build their blue ocean strategy in the sequence of utility, price, cost, and adoption, these criteria form an integral whole to ensure commercial success.
This paper presents a methodical and critical analysis of the key elements regarding the strategic management literature and the blue ocean strategy. The fish market will need to follow the six path strategy to. Furthermore the blue ocean strategy was awarded with. Blue ocean shift outlines the process of how to extract and interpret the results of your six paths market exploration and develop blue ocean alternatives blue ocean shift presents a sample completed eliminatereduceraisecreate errc grid and a resulting tobe strategy canvas for your reference. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. Summary capter 1 4 of blue ocean strategy by lauri di. I am trying to move a red ocean company to a blue ocean company. Also blue ocean strategy is a system approach that requires not only getting each strategic element right but also aligning them in an integral system to deliver value innovation.
As part of our ongoing series, blue ocean strategy wisdom, we turn to pages 47 48 of the book blue ocean strategy coauthored by professor w. Blue ocean strategy is a growth strategy framework focused on the idea of creating an uncontested market spacei. Achieved via the delivery of features that have a highest marginal benefit to customer needs. In this summary, well give a synopsis of the key concepts, tools and tips from the book. Six key areas where we look beyond current boundaries to find free market space. May 26, 2015 summary of the first four chapters of the international bestseller blue ocean strategy. The book titled blue ocean strategy is not helpful to management dont buy it and if you already have it dump it.
It is being published in a recordbreaking 44 languages and is a w. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of strategy and international management at insead. 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. His book blue ocean strategy, coauthored with renee mauborgne, has sold 3. How to build a sustainable blue ocean insead knowledge. View notes blue ocean strategies summary from mgmt 430 at university of washington.
The six paths framework in formulating blue ocean strategy. 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 about value innovation in general, in which no emphasis is put on reducing the speed to market. The six principle of blue ocean strategy should serve as essential pointers for every company thinking about its future strategy if it aspires to lead the increasingly overcrowded business world. 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. This canvas helps you identify commercially compelling blue oceans by reconstructing market boundaries. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Blue ocean strategy aims to create new revenue sectors, but implies a strong research of your market. 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. How to create uncontested market space and make the competition irrelevant, a. Value innovation strategy competes in an uncontested market space. Blue ocean strategies a summary blue ocean strategy is a business strategy book first published in 2005 and. The blue ocean strategy as a method for developing sustainable profitable frameworks implies the fundamental idea of developing new innovational markets with a majority of new customers. 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.
This template is licensed under the creative commons attributionshare alike 4. As you can see the barriers are high and that is why we have seldom rapid imitation of the blue ocean strategy. To aid you in completing this step and all the other steps in. Jul 01, 2016 blue ocean strategy aims to create new revenue sectors, but implies a strong research of your market. 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.
In this series, though, i will focus on another set of powerful tools. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. Research showed that the following six assumptions keep companies trapped in creating red oceans. Value innovation is the cornerstone of blue ocean strategy 1 and it is the strategic move that allows a company to create a blue ocean.
This paper aims to give the main guidelines for strategic implementation of blue oceans strategy and how this kind of strategy is a part of turnaround management. 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 principles risk factor each principle attenuates. 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. 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. 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 entrepreneurship competition recommended for you. This framework is very innovative, as its principles challenge the conventional business strategy principles of fighting competitors headon. The goal of a blue ocean strategy is for organizations to find and develop blue oceans uncontested, growing markets and avoid red oceans overdeveloped, saturated markets. Use features like bookmarks, note taking and highlighting while reading application of blue ocean strategy to apples ipad. Blue ocean strategy for your learning business exploring. Compared with red ocean strategy, blue ocean strategy represents a significant departure from the status quo. Blue ocean strategies summary blue ocean strategies a. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w.
Fair process and blue ocean strategy commitment, trust, and voluntary cooperation are not merely attitudes or behaviors. Download it once and read it on your kindle device, pc, phones or tablets. Six paths framework blue ocean shift blue ocean strategy. Blue ocean shift outlines the process of how to extract and interpret the results of your six paths market exploration and develop blue ocean alternatives blue ocean shift presents a sample completed eliminatereduceraisecreate errc grid and a. The diagnostic framework is somewhat of a situational analysis. The six paths framework is a core strategic tool used in blue ocean strategy. Blue ocean strategies summary blue ocean strategies a summary blue ocean strategy is a business strategy book first published in 2005 and written by w. A company will have more success, fewer risks, and increased profits in a blue ocean market. It captures the current state of play in the known market space.
Summary of the first four chapters of the international bestseller blue ocean strategy. Aug 21, 2015 a successful blue ocean strategy that has sustainability requires that all three strategy propositions be aligned in support of both differentiation and low cost. 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. Mar 23, 2017 how to escape poverty is your thinking keeping you poor. The blue ocean strategy is a framework to help small companies grow into big ones. 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. The blue ocean idea index provides a simple but robust test of this system view. Made by group d of the minor global trendwatching 2015.
Tru group inc blue ocean strategy belongs in the dead sea. Look across alternative industries organizations compete not only within the industries but also with organizations in other industries which produce alternative product and services to their industry. Blue ocean strategy actionable tools and frameworks. 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.
It hinges on a shift from convergence to divergence in value curves at lower costs. Blue ocean strategy overview texas tech university. 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 strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. A blue ocean strategy kindle edition by saleem, faazil. Imitation is not the path to success, especially in. How to create uncontested market space and make the competition irrelevant, a book by professors w. 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. 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. Pdf impact of blue ocean strategy on organizational. 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. Blue ocean strategy and the dynamic nature of business. Blue ocean strategy including examples and pdf download.
A successful blue ocean strategy that has sustainability requires that all three strategy propositions be aligned in support of both differentiation and low cost. Strategy canvas key competing factors offeringlevel 23. There are six basic approaches to reconstruct market boundaries, also known as six paths framework. Jul 27, 2015 following are the six paths framework involved in formulating the blue ocean strategy. I am working with the world famous pike place fish market in the fish and seafood industry. What is the best blue ocean strategy for women fashion. Beating the competition the blue ocean way, marketing. The premise of the book is that companies can succeed by creating. Six path framework pattern for creating blue oceans. The authors develop a specific methodology to find unexplored niches in the market, mai. Blue ocean strategy is a book published in 2005 and written by w. Blue ocean strategy chapter 14 the four action framework chapter two.