The blue ocean strategy book defines red oceans as those which already contain a high level of competition. Public sector application and research, including the application of blue ocean shift, blue ocean strategy, and blue ocean leadership to governments and nonprofits. Remember what the product that company delivers is all about. 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. 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. The 4 actions framework is a core strategic tool used in 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. This blog article is a overview of some of the key points of the book by w. Four actions framework of blue ocean applied to jet blue. Intelligent readers dont need help figuring that out. The four actions framework guide your student life with this. Blue ocean strategy value innovation strategy canvas four actions. Why should companies continue to fight in tough competitive markets waters that are red with blood when they can find new waters that ar.
Before the blue ocean strategy framework can be applied, many strategists utilize porters 1979 five forces theory as a strategy canvas can only be created once one captures the contemporary state of the play by detailing the factors that players compete on in terms of products, services and even delivery. The four actions framework is used to help create value innovation and break the valuecost tradeoff. Blue ocean strategy is the systematic pursuit of new market and new demand creation through the simultaneous pursuit of differentiation and lower cost value innovation. Blue ocean strategy canvas excel template ignition framework. It is being published in a recordbreaking 44 languages. The four pillars of blue ocean leadership insead knowledge.
The premise on which the blue ocean strategy thesis is built, is a simple one. The books online companion has a number of free tools for readers to download. Chan kim and renee mauborgne was first published in 2005. There is a strong market for cheaper substitutes to. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition.
The bos is a successful example of executing change as a crucial source of high business growth tushman and oreilly, 1997, in contrast to conventional strategy models that. How to create uncontested market space and make the competition irrelevant, a. In other words, before one can identify what bos strategy well suits a company, one. It pushes companies not only to ask the questions posed in the four actions framework but also to act on all four to create a new value curve or strategic. Blue ocean strategy is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. In a blue ocean you change the playing field of strategy. Creating barriers in the value proposition, people and profit. 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. They are ranked in the top 3 in the thinkers50 listing of the worlds top management gurus and are the recipients of. A game theorists guide to success in business and life by avinash k. Together, they wrote a bestselling book blue ocean strategy. Strategy canvas four actions framework errc grid six paths framework. 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. The top 15 strategic management books startup grind.
How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. Four actions framework template blue ocean framework miro. The research focused on discovering the common factors that lead to the creation of blue oceans and the key differences that separate those winners from the mere survivors and those adrift in the red ocean. Blue ocean shift is the essential follow up to blue ocean strategy, the classic and 3. Chan kim and renee mauborgne in 2005, the blue ocean strategy is a relatively new planning framework. Many of the case studies are based on how large companies have. Mece is an acronym for mutually exclusive me and collectively exhaustive ce. Canon copier industry case study blue ocean strategy example. 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 subscription model removed costs associated with low value activities in purchasing and deploying the service, allowing them to focus on strategic activities with a greater impact on their business customers could test the application in a single work group or division first, then extend the use. 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.
The six paths framework and four action models are used in creation of many successful ecommerce. Blue ocean strategic sequence for barnes and noble forum. These two professors, and game strategy theorists, use case studies from pop culture, history and sports to prove how individual and business interactions can use game components as. 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 idea of a blue ocean is to create an uncontested market space for your company. The company was able to identify and answer the needs of a specific and new market in the us by applying the four actions framework of the blue. Use our free blue ocean 4 actions framework template to create, collaborate on.
In an already contested market, there is a natural cap in place on the potential of your. Strategic planning frameworks and models smartsheet. The blue ocean strategy book itself offers a variety of tools and frameworks for a. Strategy tool is a generic name for any method, model, technique, tool, technology. In particular, the case addresses the concern of business executives over the applicability of blue ocean strategy in the b2b area. In this exercise use the strategic canvas and four actions framework to see if you can identify a blue ocean company within or outside an existing red ocean industry. Introduction it is not hard to see why blue ocean strategy has been so popular. The fouractions frameworkon blue ocean strategy to reduce, create, raise and eliminate industry practices to create a blue ocean fromthe industry red ocean. Based on a study of 150 strategic moves spanning more than 100 years across 30 industries, the authors argue that. The four actions framework aids in eliminating the tradeoff between differentiation and low cost within a company. The strategy canvas captures the current strategic landscape and future prospects for a company. Apply the fouraction framework of eliminate, raise, reduce, and create. It is being published in a recordbreaking 44 languages and is a bestseller across five continents. By reorienting a company towards the factors being.
Rank yourself and each competitor for each of the competitive factors creating a strategy curve. It allows users to clearly see the factors that the industry competes on and the factors that are being ignored. Sadly, most of your sins could easily be ascribed to 80% of the business strategy books published nowadays. The seminal book blue ocean strategy has sold over 3. Although there is an inevitability to having to compete in crowded markets, there are too many advantages to avoiding this situation to ignore the possibility of looking for blue space. The database and research have continued to expand. Introduction to strategy strategy mba crystal ball. Blue ocean strategic sequence for barnes and noble jonathan jolley, student university, united states, member barnes and noble while it is not presently in a blue ocean environment it is certainly a company that has a history of pursuing such environments and appears to be following the same procedures to achieve blue ocean strategy success. In their 2017 new york times bestselling book, blue ocean shift, kim and. A fouraction framework for blueocean innovation the. Blue ocean strategybos frameworks and tools include.
The structure can be created or recreated by the steps taken by players in the market. Mece framework mckinsey if are working for mckinsey, or any other elite consulting firm, youre probably be dealing with tons of data that you organize using the mece framework. List the factors the customer cares about, and current dimensions of competition. The blue ocean strategy recommends that a successful business should be able to develop a new demand in an uncontested markets rather than compete directly with other competitors in the industry. 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 formulation the four principles of strategy.
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. Another tool in the blue ocean strategy framework is the idea of creating a new value driver for the product or service in question. The four actions framework is used to help create value innovation and break. Drawing on more than a decade of new work, kim and mauborgne show you how to move beyond competing, inspire your peoples confidence, and seize new growth, guiding you stepbystep through how to take your. Create a new market space through innovating on the value you give to the customer. Summary of the first four chapters of the international bestseller blue ocean strategy.
Blue ocean strategys four actions framework poses four central questions that let companies break the valuecost tradeoff and create a blue ocean. With the aid of the four actions framework figure 4 and the. The blue ocean strategy tools four actions framework. 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.
This tool is the central diagnostic and action framework for building a compelling blue ocean strategy. Chen, information systems theory and practices red ocean vs. A crucial tool in this odyssey is the fouractions framework. Effective blue ocean strategy should be about risk minimization and not risk taking. Previous phones usually came in either one or two colors at the most. 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. Published october 9, 2017 updated october 10, 2017.
How to create uncontested market space and make the competition irrelevant, it seemed too good to be true. Chan kim and renee mauborgne focused on discovering the common factors that lead to the creation of blue oceans and the key differences that separate those winners from the mere survivors and those adrift in the red ocean. First, provide your strategy canvas and in detail explain the significance of the factors in your 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.
In this paper the blue ocean strategy is deployed on the online industry, especially on ecommerce. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. There are four things you would learn specifically alignment barriers. The strategy canvas the strategy canvas is both a diagnostic and an action framework for building a.
The strategy canvas the strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. Shortform has the worlds best summaries of books you should be reading. By contrast, a red ocean is a market space that is already developed and saturated. Het four actions framework van chan kim en mauborgne is een tool uit het boek blue ocean strategy om op een systematischere manier tot. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. Please identify the value innovation that you will be creating to move your business into a blue ocean market space. In their 2017 new york times bestselling book, blue ocean shift, kim and mauborgne. Four actions framework blue ocean strategy shortform blog. They are the authors of blue ocean strategy, which has sold over 3. A good blue ocean strategy has items in each of the four grids. There are 03 types of analytical tools in formulating and executing blue ocean strategy. Blue ocean strategy has challenged business leaders to. First and foremost on their list is a tool used to break out of competition and make competition irrelevant called the strategy canvas.
The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. 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. Canon copier industry case study blue ocean strategy. What is blue ocean strategy and how can you create one. 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. Sarah layton in blue ocean strategy on july 6, 2009. Analysis plandata usedkey assumptions analysis plan. The blue ocean strategy seems to be a perfect solution for present companies to become sustainable successful. Blue ocean strategy ppt slides linkedin slideshare. Chan kim and renee mauborgne is used to reconstruct buyer value elements in crafting a new value curve or strategic profile. It continues with shortcomings of current policymaking approaches and proposes a new approach based on a business strategy called the blue ocean strategy bos. According to the wine economist, it is because it is not just wine, but a new type of product within the wine industry. Reduce determine whether products or services have been overdesigned in the race to match and beat the competition. The subscription model removed costs associated with low value activities in purchasing and deploying the service, allowing them to focus on strategic activities with a greater impact on their business customers could test the application in a single work group or division first, then extend the use to other divisions once the test was successful.
A fouraction framework for blueocean innovation the globe and. Eliminate consider eliminating factors that companies in your industry have long competed on or factors are no longer have value or may even detract from value. Blue ocean strategy introduces analytical tools to minimize risk. Made by group d of the minor global trendwatching 2015. Reviewing the blue ocean strategy universiteit twente. How to create uncontested market space and make the competition irrelevant from the worlds largest community of rea. 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, the authors refer to as the cornerstone of the blue ocean strategy. I must confess that value innovation on a first read sounds counter intuitive to the twin principles of. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. Blue ocean strategy usually talks about creating a blue ocean for your business and creating barriers for other businesses to imitate. Drawing on more than a decade of new work, kim and mauborgne show you how to move beyond competing, inspire. Blue ocean strategy including examples and pdf download.
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