Blue Ocean Strategy Summary Chapter 11: Red Ocean Mistakes . BLUE OCEAN STRATEGY. If you’re here to self-educate, see our case studies, articles and other recommended reading, videos, podcasts, webinars, software and more to inform your journey. Traditional Competitive Strategies. This strategy makes the competitors irrelevant and the main driver of the company’s profits are the decreased costs. You must keep in mind that there is a deeper potential of the marketplace that hasn’t been explored yet. Authors believe that the red ocean stands for a market that is overwhelmed with competitors, and the blue ocean represents an unknown market without rivals. They uncovered a systematic process of achieving growth that works whether you are a cash-strapped startup, non-profit, small business, or a large, established company. Value innovation is the cornerstone of Blue Ocean Strategy. Blue Ocean Strategy vs. 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. The approach of blue ocean strategy is as follows: i. By the end of the course you will be able to: Know Who developed the Blue Ocean Strategy, Understand What is a Business Universe, Differentiate between Blue Ocean and Red Ocean, Describe Ways to Create Blue Oceans, Understand Key Terms Related to Blue Ocean Strategy, Learn the Steps to Create a Blue Ocean Strategy, List the Blue Ocean Strategy Tools, Learn What is Meant by … Blue ocean strategy makes competition irrelevant but tries to create and capture a new market. Adoption. Blue Ocean Studio™ All the tools you need to build a powerful strategy in one collaborative, online platform. " You may or may not agree with the central philosophy, but you will be inspired. Learn how to engage your colleagues in a Blue Ocean Strategy process. Blue Ocean Strategy is a business marketing strategy of creating a new market space for its services and products. 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. Rather than competing for a slice of an increasingly shrinking pie – the red ocean strategy – a blue ocean strategy sees a business creating a pie of … Blue Ocean Strategy – Approaches of Blue Ocean Strategy . The first example of blue ocean strategy comes from computer games giant, Nintendo, in the form of the Nintendo Wii. These will be phrased as myths that are then debunked: Myth: Blue ocean strategy is a customer-led strategy focusing on existing customers. We’ll cover 15+ Blue Ocean Strategy examples so you can figure out how to create your own blue ocean. Working back from that vision of a blue ocean strategy, you can identify what must be changed today to unlock a new blue ocean. The blue ocean strategy fundamentally challenges leaders to assess the value rather than the technology. The Strategy Canvas provides a highly visual tool to help look at future options. All in all, Blue Ocean Strategy is a book worth reading. Blue Ocean Strategy vs. Red Ocean Strategy. Develop an actionable plan. This is a key principle of blue ocean strategy which sees low … Blue Ocean Idea Index The blue ocean idea index is a simple but robust test demonstrating how the sequence of utility, price, cost, and adoption form an integral whole to ensure commercial success through blue ocean strategy. In Search of a Logical Conclusion If there is one trend that I think warrants deeper consideration than it has gotten, it … Blue ocean strategy is based on over decade-long study of more than 150 strategic moves spanning more than 30 industries over 100 years. We assess the profit and growth consequences of blue oceans and discuss why their creation is a rising imperative for compa-nies in the future. It rejects the principles of trading low cost vs value proposed by Michael Porter. A critical evaluation of Blue Ocean Strategy and its value to SMEs. ∗Blue Ocean Strategy is a: ∗Value Innovation Strategy – competes in an uncontested market space ∗“Combination Strategy ”: pursue differentiation while controlling costs. The value curve of blue ocean strategy always stands apart from the competitors. 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. The crux of the strategy is a value-cost trade off. The terms blue and red oceans were introduced by W. Chan Kim and Renée Mauborgne in their book Blue Ocean Strategy. ate blue oceans. Where Red Ocean Strategy is a zero-sum game that is all about splitting up the pie between rivals, Blue Ocean Strategy is about creating the pie and/or enlarging it. Blue Ocean Strategy Competing in overcrowded industries is no way to sustain high performance. Free Content & Not-So-Free Content. Blue Ocean Strategy is a powerful framework for finding new business opportunities. The first hurdle described in the fifth principle is the cognitive hurdle, or the unwillingness of the people of a firm to recognize the need for change. Motivate your organisation. The real opportunity is to create blue oceans of uncontested market space. 8 Blue Ocean Strategy can be found on Amazon – Blue Ocean Strategy The Nintendo Wii launched in 2006 and at its heart is the concept of value innovation. Introduction. Blue Ocean Strategy is a concept that has been pioneered by INSEAD Professors, W. Chan Kim, and Renee Mauborgne. blue ocean strategy and describe its defining characteristics. Audience Definition. Reactively formed strategies tries to keep up with the competition, thus loosing uniqueness. Blue ocean strategy doesn’t aim to out-perform the competition. Blue Ocean Strategy and Blue Ocean Shift Kim and Mauborgne have been researching what it takes to break out of the red ocean of competition and generate strong profitable growth for over 30 years. This template enables managers and executives to create a detailed and comprehensible blue ocean strategy. Implementing the blue ocean strategy is, simply put, a gargantuan task. In this 5 minute blog, I’ll tell you what the difference is between a red vs blue ocean, and how certain entrepreneurial skills can help you survive a bloody red ocean. Quick Review of Blue Ocean Strategy Blue Ocean Strategy ends with ten cognitive traps that can deter you from creating blue oceans or that jeopardize your execution. Slides about blue ocean strategy. Acquire an in-depth understanding of Blue Ocean Strategy tools and concepts developed at INSEAD. Start developing Blue Ocean Strategy for your organisation in order to break away from the competition … Whereas conventional strategic approaches drive companies to define their industry similarly and focus on being the best within it, blue ocean strategy prompts them to break out of the accepted The Blue Ocean Strategy represents the simultaneous pursuit of high product differentiation and low cost, thereby making competition irrelevant. ∗Achieved via the delivery of features that have a highest marginal benefit to customer needs . We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. 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. To map current value propositions and then to create innovative new value. Instead of dividing up exist-ing—and often shrinking—demand and benchmarking competi-tors, blue ocean strategy is about growing demand and breaking Since its first edition, Blue Ocean Strategy has been revised and expanded in 2015 and has become a bestseller with over 4 million copies sold in 46 languages. Blue Ocean Strategy is the only strategic planning method recognised in BOTH of Harvard Business Review’s Ten Must Reads on Strategy AND on Change Management. In order to create this shift in attention from Red Oceans to Blue Oceans the authors came up with a concept called ‘ Value Innovation ‘ that allows for a simultaneous pursuit of both differentiation and low-cost. Extremely impressive platform.It really helped our understanding of the big picture, solved a host of problems and revealed new opportunities." Let’s go back now to Nintendo’s case. One, makes you read Blue Ocean Strategy and two makes you appreciate the power of creating blue oceans. A so large change threatens the status quo, and for that reason it may provoke insecurity and resistance among company’s stakeholders. The book is recognized as one of the most iconic and impactful strategy books ever written and is the recipient of numerous distinguished awards. Blue Ocean Strategy breaks down the key techniques to successfully executing tipping point leadership. But many companies have done their homework and succeeded thanks to this strategy. Divergence helps differentiating company from the industry’s average profile and helps them to achieve a leap in value on strategy canvas, such as low-cost business model. Uber is the best case study to understand the power of Blue Ocean Strategy. W. Chan Kim and Rene Mauborgne (2005) presented a new strategy named blue ocean strategy. But it’s not always clear how to create a blue ocean strategy for yourself. Gain a new framework for strategy design and implementation. The Profit Model of Blue Ocean Strategy. The blue ocean strategy, on the other hand, involves finding, developing or creating new and uncontested markets. Uber is the disruptive company of the recent decade, they have redefined an industry and changed how we move through the world. The value of having a blue ocean strategy is better understood when compared to a red ocean strategy. A blue ocean strategy is based on creating demand that is not currently in existence, rather than fighting over it with other companies. Here’s a neat little summary for each strategy: I hope this post does two things. The Blue Ocean Strategy, theorized by W. Chan Kim and Renée Mauborgne, is the idea of creating a new demand for your products with a whole new audience based on a different pricing strategy or a product differentiation. This strategy, which is based on extensive research of hundreds of companies spanning across decades and including several industries, proclaims that instead of battling competitors, companies can create new markets for themselves. It aims to make the competition irrelevant by reconstructing industry boundaries. Concerns of employees, business partners and general public must be addressed to avoid resistance and fears, when changing the current status quo. Because, only with a blue ocean strategy and the right entrepreneurial mindset, you can swim into a more profitable and distinct blue uncontested market space.
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