Blue Ocean Strategy (BOS) is the simultaneous pursuit of differentiation and low-cost to create new market space. The strategy states that if you want your business to get into the ‘blue ocean’, you have to create a value innovation . Challenge the assumptions governing many company’s strategies that keep these companies trapped in Red Oceans I decided to give it a try and I must confess it has been a tedious task, or rather a challenge to try and do outside my regular working hours. The award winning book about the requirements for strategic success is also about transforming, rebuilding and creating new markets. Present companies with commercially viable Blue Ocean ideas. Price and features, for example, tend to be common ones. The creation of blue oceans is about driving costs down while simultaneously driving value up for buyers. I love when I listen to the little voice and the … Blue Ocean Strategy is meant to break the old rules and rewritten it. Blue Ocean Strategy enables a fundamental transformation in mindset. BLUE OCEAN STRATEGY Critique of the book titled, 釘 lue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevantby W. Chan Kim and Renee Mauborgne, published by Harvard Business School Press, Boston, Massachussets, 2005, ISBN 978-59139-619-2. They’re fighting it out in the bloody red ocean of rising competition and lowering demand. In their book, Blue Ocean Strategy (2004), Kim and Mauborgne examine four challenges a manager faces when instituting change in an organization. To be able to do that, you have to look at your process innovation from a new perspective. The strategy is specifically a marketing theory and thus, a marketing strategy. It is a great way to mobilize thinking around new differentiators (value creation). Blue Ocean Strategy ends with ten cognitive traps that can deter you from creating blue oceans or that jeopardize your execution. I can now incorporate the “Blue Ocean” Strategy and Shift in my process. Blue Ocean Strategy is a business strategy book that promotes creating new market space or "blue ocean" rather than competing in an existing industry. If that individual changes purchasing habits based upon aesthetics or fashion, there is a new customer market. “Blue ocean shift is a systematic process to move your organization from cutthroat markets with bloody competition—what we think of as red oceans full of sharks—to wide-open blue oceans, or new markets devoid of competition, in a way that brings your people along.” According to Kim and Mauborgne, "Blue Ocean Strategy challenges companies to … It asserts that for businesses to win in the future, they must stop competing. blue ocean strategy, case study, iTunes, Netflix, strategy, ten schools of strategy. Blue Ocean Strategy Summary Chapter 11: Red Ocean Mistakes . BLUE OCEAN STRATEGY. A blue ocean strategy enables the creation of new markets, buy moving beyond the boundaries of existing red ocean markets to create uncontested markets. A key concept of this blue ocean strategy is value innovation. Ocean Strategy on the stuff that companies have no choice but to compete with But the blue ocean market based on the assumption that the limits are not just born of the mind of managers . In 2017, Peter Thomas, now executive director at the Leasing Foundation, wrote an overview of new technologies that will impact the leasing industry. This article focuses on “what is blue ocean strategy”. For example, and individual may purchase cloths of a vehicle for its functional purpose. Value innovation is a new way of thinking about and executing strategy that results in the creation of a blue ocean. “Using Blue Ocean Strategy can help companies focus on truly defining a unique offering, something that stands out above the rest and can be recognized by the market. Fortunately, there is a handy tool for this called the blue ocean strategy canvas. In order to understand these characteristics, knowledge of Blue Ocean Strategy Canvas is … As a result, our travel package could operate without competition. Have a general application across industries. For example, "competing factors" in blue ocean strategy are similar to the definition of "finite and infinite dimensions" in Funky Business. A critical evaluation of Blue Ocean Strategy and its value to SMEs. Heck, here is a even an app for that! Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant W. Chan Kim and Renée Mauborgne Harvard Business School Press This is an especially thought-provoking book that, as have so many others, evolved from an article published in the Harvard Business Review. It is about strategy that embraces the entire system of a company’s activities. 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. [1] It contains retrospective case studies of business success stories the authors claim were Blue Ocean Strategies. Value Innovation Value innovation places equal emphasis on value and innovation. 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. In yesterday’s example, we created a biking event that evidenced blue ocean strategy. Let’s revisit the six steps of the Blue Ocean strategy from a process point-of-view. Test Your Assumptions Using The Blue Ocean Canvas. In this context, value innovation is built … This article is Part 3 of a review of the concept of Blue Ocean Strategy for Travel Agents. The Blue Ocean Strategy seems to be a perfect solution for present companies to become sustainable successful. With regard to Blue Ocean Strategy, the Four-Actions Framework is designed to challenge traditional assumptions about marketing strategy by asking four key questions. Once you’ve identified a few of your blue ocean opportunities, you will need to make sure that your blue oceans are really blue oceans. 6 Basic approaches to remaking market boundaries. Blue Ocean Strategy’s goal is to make the competition irrelevant. Blue Ocean is a strategy of innovation in new market space where competition does not exist. It is based on practical approaches that have proven results during live market executions. Which of the following IS NOT one of these questions? I recently wondered why we shouldn't apply Blue Ocean Strategy to telco’s within the Networked Society. a. Hence, blue ocean strategy is a theory of transformation that shows how a company can bring about an innovative change in an industry through disruptive and nondisruptive forces of innovation. A good strategy should equally focus on execution & communication. Review: 'Blue Ocean Strategy' by W. Chan Kim & Renee Mauborgne. In Blue Ocean Strategy, there are three simple characteristics or yard stick used to evaluate strategies – Focus, Divergence and Compelling tagline. Blue Ocean Strategy is based on “time and again” proven data rather than unproven theories. b. tangible product or service advancements) accompanied by demonstrable savings. Blue Ocean Strategy Red Ocean Strategy 2. 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. blue ocean strategy [46] or as a disruptive innovation, it is wise to begin in incremental stages in assessing the effectiveness of a new idea in a new market space [47]. A blue ocean strategy posits that when a customer changes the purpose of purchasing, a new market is created. The main assumption of this theory is that strategy is a link between both the internal and external en- These will be phrased as myths that are then debunked: Myth: Blue ocean strategy is a customer-led strategy focusing on existing customers. A lot of businesses–by definition–are not blue ocean companies. #3. Blue ocean strategy is based on over decade-long study of more than 150 strategic moves spanning more than 30 industries over 100 years. In the Blue Ocean strategy, you must offer your customers a value innovation (i.e. This “Blue Ocean” (Strategy and Shift) addresses exactly where I am. BOS is all about minimizing risks due to competition threat and maximizing opportunities by exploring new boundaries. I’ve had a dilemma on how to get clarity on my ICA. Most managers fail to embed the changes they implement due to ignorance of the basic assumptions that drive culture. Blue Ocean strategy – in case you have not come across the concept before – is based on the idea that most organizations within any field or industry compete on the same basic factors. Which factors should be reduced well below the industry뭩 standard? It develops mental horizons and helps in recognizing the opportunities. Based on looking at familiar data from a new perspective. 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 cost”. Defining Blue Ocean Strategy: Red Ocean Versus Blue Ocean. This represents great alignment for me. Dr. Brian Gladden has done an excellent job in working with my clients to help them see their true potential through using the tools of Blue Ocean Strategy.” Brett Sargent Just as blue ocean strategy claims that a red ocean strategy does not guarantee success, Funky Business explained that "Competitive Strategy is the route to nowhere". The thesis of Blue Ocean Strategy is simple: why compete with other firms if you don’t have to? Click here for Parts 1 and 2. In W. Chan Kim and Renée Mauborgne’s latest book, Blue Ocean Shift, they outline three components to a blue ocean strategy: Blue Ocean Strategy seeks to make the competition irrelevant by creating a leap in value for both the company and its buyers. In this essay I will critically analyze and evaluate the Blue Ocean Strategy; its value to small-to-medium size enterprises and how it can create a demand in today’s hyper-competitive market space.I will also discuss the key elements required to develop the Blue Ocean Strategy. In contrast to Michael Porter’s work, W. Chan Kim and Renee Mauborgne advocate a different approach to strategy: focus on creating new industries that change the competitive landscape completely. Sequence of blue ocean. In contrast to blue ocean strategy, a red ocean strategy is competition-based, the industry’s structural conditions are given, and firms compete within those conditions , , . The table outlines these six basic assumptions and the pathway managers can take to break away from head-to-head competition towards blue ocean creation. The good news is, the shift to a happy blue ocean is possible.