Six principles of blue ocean strategy book pdf

Blue ocean strategy is a book published in 2005 and written by w. Working with our partners at thinkers50 we have created email protected it showcases some of the very best thinkers in the field of strategy and beyond. Jan 14, 2015 blue ocean strategy is a new way of thinking, a new strategic mindset, a bold new path to winning the future. Blue ocean strategy available for download and read online in other formats.

Blue ocean strategy how to create uncontested market. 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. What is blue ocean strategy about blue ocean strategy. Blue ocean strategy blue ocean strategy pdf blue ocean strategy 2004 five keys to blue ocean strategy book summary blue ocean strategy compte nickel blue ocean strategy blue ocean strategy expanded edition blue ocean strategy book by w. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. Blue ocean strategy is a bad book, but it is not your usual bad book. The evolution of blue ocean strategy vivechan international journal.

The seminal book blue ocean strategy has sold over 3. Blue ocean strategy, also referred to as blue ocean shift, is a marketing strategy where there is a single firm selling a differentiated product or there can be very few firms selling products that are differentiated in the market. Blue ocean has six basic principles t o form a strategy. Blue ocean strategy is a powerful framework for finding new business opportunities. Value innovation strategy canvas four actions framework six paths. Value innovation strategy competes in an uncontested market space. To join the free indie business book club, click here. Eight key points of blue ocean strategy heres the essence of blue ocean strategy captured in eight key points. Hence, the sixth principle of the blue ocean strategy asserts the need to build execution into the strategy itself. Based on a study of 150 strategic moves spanning more than 100 years. Blue ocean strategy is a marketing theory and the title of a book published in 2004 written by w. Instead of focusing solely on the moment a customer purchases a book as the.

Blue ocean strategy is about value innovation in general, in which no emphasis is put on reducing the speed to market. It is being published in a recordbreaking 44 languages and is a. How to create uncontested market space and make competition irrelevant, is a market space that is undeveloped, and untapped by competitors. 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 ocean. May 30, 2017 to join the free indie business book club, click here. It is being published in a recordbreaking 44 languages and is a bestsel w. How is blue ocean strategy different from a classic differentiation 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 oceans and to do so in a way. The six principles of blue ocean strategy formulation principles 1. Keywords blue oceans, value innovation, four action framework, strategy. 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. The first principle of blue ocean strategy is to reconstruct market boundaries to break from the competition and create blue oceans. Reviewing the blue ocean strategy universiteit twente. 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.

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. 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. Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. Chan kim is the codirector of the insead blue ocean strategy institute and a chair. Provides stepbystep process provides a stepped process for implementation gives management an alternative to traditional strategies 6. The premise of the book is that companies can succeed by creating. International journal of economics, co mmerce and management, u nited kin gdom. It is based on the view that market boundaries and industry structure are not a given and can be. Renew blue ocean as much as possible and remove any renewal risk. The first highlighted case from the blue ocean strategy book is the cirque du soleil. Strategy canvas the strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. Blue ocean leadership is designed to be applied across the three distinct management levels. 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. The insead blue ocean strategy open enrolment programme is based on the groundbreaking work developed by insead professors chan kim and renee mauborgne.

The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. Apr 10, 2012 blue ocean strategy blue ocean strategy tools bos strategy tools six principles of blue ocean formulating blue ocean strategy the principles that drive the successful formulation are reconstruct market boundaries, focus on the big picture, not numbers, reach beyond existing reconstruct market focus on the big demand, and get the strategic. Kicking off the book with four analytical tools that promise to help firms find and exploit untapped markets, the authors offer a step by step approach, comprised of six principles, on how to break away from the competition of red oceans and execute a blue ocean strategy. 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 formulation the four principles of strategy formation. This blog article is a overview of some of the key points of the book by w. Blue ocean strategy case study service nsw 3 1 introduction blue ocean strategy1 has been used extensively to transform the public sector around the world at a local, state and national level. Blue ocean strategy is the most successful book on business masterplanning. Blue ocean strategy presents a systematic approach to making the competition irrelevant and outlines principles and tools any organization can use to create and capture their own blue oceans. It is a coalition dedicated to helping organizations bridge the gap between strategy design and strategy delivery. Blue ocean strategy chapter 6 get the strategic sequence right netflix in this chapter, professor w.

Reach beyond existing demand reduce scales reisk 4. We hope that it acts as a catalyst for readers to get things done. 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 blue ocean strategy is base on the realization that a much more valuable for firms. Our aim is to make the formulation and execution of blue ocean strategy as systematic and actionable as competing in the red waters of known market space. Blue ocean strategy displays an orderly way to deal with making the challenge unessential and traces standards and instruments any organization can use to make and catch their blue seas. Applying these core principles into your strategy will guide you in creating the right blue ocean strategy for your business. For app developers we help make the competition irrelevant. Chan kim and renee mauborgne in the indie business book club. Everyday low prices and free delivery on eligible orders. The six sigma management strategy originated in 1986 from motorolas drive towards reducing defects by minimizing variation in processes. To learn more about the power of blue ocean strategy, visit blueoceanstrategy. Aug 08, 2019 these four formulation principles address how an organization can create blue oceans by looking across the six conventional boundaries of competition six paths framework, reduce their planning. Buy blue ocean strategy, expanded edition revised ed.

But its not always clear how to create a blue ocean strategy for yourself. But, lets first understand what is blue ocean and how it is different from red ocean strategy. Focus on the big picture, not the numbers reduce planning risk 3. Strategy in a practical way the study of six principles play a significant role 4. 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. Maximizes opportunityminimizes risk mitigates risk increases odds of success 7. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. How to create uncontested market space and the make competition irrelevant 2005. This bachelor thesis provides a general overview of the theoretical principles of the blue ocean strategy targeting the assessment of opportunities for stationary fashion retail companies according to.

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. The structure can be created or recreated by the steps taken by players in the market. The next two parts of the book cover these two categories of principle respectively, in addition to the application of tools and. Jun 08, 2007 the six principles of blue ocean strategy risk factor each principle attenuates evaluation principles risk factor each principle attenuates formulation principles 8. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. 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. Blue ocean strategy how to create uncontested market space. Expertise in saas deployment to the accounting profession and small to medium sized business owners, blue ocean principles works with vendors to create strategies that increase user adoption and partnerships to support growth initiatives. Consider this your guide to creating uncontested market spaceand making the competition irrelevant. All these principles can serve all sorts of companies, no matter the industry they are in. It is about creating and capturing uncontested market space, thereby making the competition irrelevant.

Based on 15 years of research, the authors used 150 successful strategic moves spanning 120 years of business history and across 30 industries to. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. Chan kim and renee mauborgne, professors at insead. Jul 16, 2015 the blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. Chan kim and renee mauborgne in their book blue ocean strategy. Blue ocean strategy, expanded edition w chan kim, renee. Blue ocean principles business development consulting. The six principles of blue ocean strategy formulation principles reconstruct market boundaries focus on the big picture, not the numbers reach beyond existing demand get the strategic sequence right execution principles overcome key organizational hurdles build execution into strategy. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. Also, they serve as essential pointers about their future strategy.

Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to. Value innovation value innovation places equal emphasis on value and innovation. Business strategy usually occurs at business unit or product level emphasizing the improvement of competitive position of a firms products or services in an industry or market segment served by that business unit. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. Get the strategic sequence right reduce business model risk executive principles 5. The six principles are presented in the following table. Chan kim build up the regulations which can robust the business model to ensure that a healthy profit on blue ocean market space. Six principles of blue ocean strategy there are six main principles that guide companies through the formulation and execution of their blue ocean strategy in a systematic risk minimizing and opportunity maximizing manner. 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. It is based on the three e principles of engagement, explanation and expectation clarity. His book blue ocean strategy, coauthored with renee mauborgne, has sold 3. Aug 28, 2012 blue ocean strategy is about value innovation in general, in which no emphasis is put on reducing the speed to market. Built on common strategic patterns of blue ocean strategy.

Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. Blue ocean strategy described in the book of the same name, written by kim vichan and renee moborn of blue ocean strategy institute is investigated. This book builds on and extends this work by providing a narrative arc that draws. List the factors the customer cares about, and current dimensions of competition. Some strategic planning models are based on theories that dont quite pan out during gotomarket executions. One of the first shows was titled we reinvent the circus. In this article you will learn how to make your competition irrelevant and have sales and profit.

Fair process is a key pillar of blue ocean strategy that is central to building execution into strategy. Pdf blue ocean strategy download full pdf book download. Blue ocean strategy introduces analytical tools to minimize risk. Doing entails acknowledging the fact that an organization is not just about the toplevel management, middle management, or the employees. Chan kim and renee mauborgne have created a comprehensive set of analytic tools and frameworks to create blue oceans of new market space. Blue ocean strategy can be applied across sectors or businesses. What is distinctive about blue ocean strategy as a. A landmark work that upends traditional thinking about strategy, this bestselling book charts a bold new path to winning the future. 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. Only then can companies step up to the challenge of creating blue oceans in a smart and responsible way that is both opportunity maximizing and risk minimizing. The creation of blue oceans is about driving costs down while simultaneously driving value up for buyers. Furthermore the blue ocean strategy was awarded with. Yet the book also shows that the kind of leadership and management needed to implement a blue ocean strategy initiative is very different from the typical big bureaucracy, where strategy. How to create uncontested market space and make the competition irrelevant pdf by w.

Business strategy falls in the in the realm of corporate strategy. Jul 28, 2018 blue ocean strategy was coined by professors w. 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. Lastly, the blue ocean strategy shows you how to create a winwin outcome. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant.

Value innovation is a new way of thinking about and executing strategy that results in the creation of a blue ocean. Blue ocean strategy globalization, entrepreneurship and. Each of the six principles in blue ocean strategy expressly addresses how to mitigate. It calls for profiles for leaders that are tailored to the very different. They didnt compete in the same market from the conventional circus. 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. The six paths framework in formulating blue ocean strategy. 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. 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. Blue ocean strategy is a strategy that advice companies to go to a new market, which interest customers and avoid competition from the existing market.