Red ocean in blue oceans, demand is created rather than fought over. Namun ternyata, kesuksesan sebuah perusahaan kini tidak lagi diukur dengan memenangi persaingan berdarahdarah di red ocean strategy. May 30, 2017 t his month, we read blue ocean strategy by w. Embraced by organizations and industries worldwide, blue ocean strategy is a global phenomenon. Renee mauborgne of insead explains how a landmark idea is evolving. It is about creating and capturing uncontested market space, thereby making the competition irrelevant. As market power has moved from companies to consumers, and global. However, the blue ocean strategy takes a different view.
All in all, blue ocean strategy is a book worth reading. Forbes takes privacy seriously and is committed to transparency. Blue ocean strategy is a book published in 2005 and written by w. This blog article is a overview of some of the key points of the book by w. Overview of the blue ocean strategy 3665 words bartleby. They represent businesses that may not be around today, or werent around until they came on to the scene. Blue ocean strategy the blue ocean approach is a strategic tool that helps innovation strategists asses current and desired future strategic states whereasred ocean is a current state.
Blue ocean strategy case study service nsw 2 foreword service nsw is an important initiative in the delivery of an improved customer experience for the citizens and businesses of new south wales. It gives the idea of creating blue oceans by building a new. Their book teaches readers how to create uncontested markets for. The blue ocean strategy concerns itself with creating uncontested market space. Blue ocean strategy for small businesses fundbox blog. Red oceans of vicious competition, why not move to the blue oceans where there was. Blue ocean vs red ocean strategies 6 major differences red bull case study. In the decade since the publication of the first edition of our book, blue ocean strategy, weve had. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. In a red ocean strategy, companies focus on existing customers and compete in existing market space. Mauborgne, blue ocean strategy challenges companies to break out of the red ocean of. Professors chan kim and renee mauborgne introduced the concepts of red and blue oceans in their international bestseller blue ocean strategy.
You may or may not agree with the central philosophy, but you will be inspired. Summary of the first four chapters of the international bestseller blue ocean strategy. This tool is the central diagnostic and action framework for building a compelling blue ocean strategy. Blue ocean vs red ocean strategies 6 major differences. First published in 2005, it was updated and expanded with fresh content in 2015. What is blue ocean strategy about blue ocean strategy. In this article you will learn how to make your competition irrelevant and have sales and profit. The strategy clearly brings out the fact that the only way to beat competition is to stop trying to beat it. Heres a look at the basic premise of blue ocean strategy, and how you can apply it to your small business strategy.
Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. Blue ocean strategy, outlines the processes of removing the fight for competitive advantage and the battle for differentiation typical of many corporate strategies. While the red ocean strategy is a head to head battle where the players of a particular segment compete with each other remaining in the same market space i. Achieved via the delivery of features that have a highest marginal benefit to customer needs. The authors stress that value and innovation must work together simultaneously in order to develop a blue ocean strategy. Value innovation strategy competes in an uncontested market space. We will introduce the aspects of red ocean strategies that most of the companies use around the world, and then we will compare the advantages and disadvantages of using blue ocean strategies. Business strategy is all about how you intend to differentiate yourself from the competition and how you plan to get there. For that there is nothing better than something called the blue ocean strategy. Blue vs red ocean endicott masters in international admin. 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. Based on a study of 150 strategic moves spanning more than 100 years. The authors describe red oceans as the existing industries in a known market space.
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. So far, blue ocean support relies on a data base of case studies that does not statistically analyze overall patterns. There is ample opportunity for growth that is both profitable and rapid. Let me try to explain this in simple terms for the benefit of everyone. Mar 10, 2015 back in 2008, i wrote a paper on blue ocean strategy which was published at the international conference on management.
Red ocean strategy and blue ocean strategy youtube. 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. Based on a study of 150 strategic moves, spanning more than 100 years. In red oceans, there is a competitiveadvantage worldview, companies are often driven to outperform rivals and capture greater shares of existing or shrinking market space. Blue ocean strategy is the most successful book on business. Sep 26, 2016 the strategy canvas provides a highly visual tool to help look at future options. May 26, 2015 summary of the first four chapters of the international bestseller blue ocean strategy. 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. A red ocean is a metaphor for a market full of competitors. Blue ocean strategy adalah strategi menciptakan ruang pasar baru yang belum termanfaatkan. Blue ocean strategy red ocean strategy blue ocean strategy compete in existing market space. Blue ocean strategy ist eine methode zur entwicklung dauerhaft profitabler geschaftsmodelle. History and background a video game console is just a computer that is made only.
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. With a focus of not just beating your competition but making them irrelevant, blue ocean strategy is all about thinking outside the box. 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 strategy canvas provides a highly visual tool to help look at future options. Itu sebabnya kini hadir istilah baru yang disebut blue ocean strategy. The blue ocean strategy is a book about finding your niche within a niche so you can. Chan kim and renee mauborgne, professors at insead. Find your space in the blue oceanand build your blue ocean. To create a blue ocean strategy, organizations must be committed to value innovation. 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. The main selling point with blue ocean marketing is the focus on creating demand where there currently is none. Blue ocean strategy executive summary these days all major global organizations are focusing towards the latest concept of strategic management, the blue ocean strategy. How to create uncontested market space and make the competition irrelevant, a book by professors w. 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.
The mental models that undermine marketcreating strategies. Chan kim, and renee mauborgne of insead, a graduate business school with locations in europe and the middle east, put forth a simple, but effective argument as to why markets should be divided into two distinctly different categories. With this groundbreaking book, kim and mauborgneboth professors at. Red ocean strategies compete in existing markets which is referred to head. Even though, recently, white ocean has emerged in world business strategy. May 27, 2014 for that there is nothing better than something called the blue ocean strategy. I was pleased to be a part of a committed team in 2012 bringing service nsw to life, tasked with. There are two types of oceans in this world, according to authors w. Blue ocean strategy can be found on amazon blue ocean strategy. Made by group d of the minor global trendwatching 2015. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. In this 5 minute blog, ill tell you what the difference is between a red ocean vs blue ocean and how you can survive a red ocean and swim into a more profitable and audible blue one. Back in 2008, i wrote a paper on blue ocean strategy which was published at the international conference on management. Instead, kim and mauborgne 2005a, b, and c and kim et al.
Blue ocean strategy suggests that an organization should create new demand in an uncontested market space, or a blue ocean, rather than compete headtohead with other suppliers in an existing industry that is called red ocean. Instead, create a new marketplace for your business that allows you to write the rules. Blue ocean vs red ocean business strategies duration. Blue ocean strategy including examples and pdf download. Chan kim and renee mauborgne in the indie business book club. This is a business strategy book, more real and less fiction.
Winner of the best strategy and leadership book 2017 by 800ceoread. The vieoints of the authors are discussed with a greater clarity in order to clearify both the terms with respect to different references provided. The authors use the terms blue oceans and red oceans to describe the entire market universe. This concept, which seems new, is actually hundreds of years old. Blue ocean strategies on february 12, 2020 blog, b2b strategy and messaging, virtual vp of marketing it can be difficult to succeed with the cutthroat competition in the business environment today. 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. Blue ocean strategy the maturity of an industry has brought a company swimming in a red ocean, which means price war strategy, according to a bestseller book titled blue ocean strategy that is written by w. Chan kim and renee mauborgne, the writers of the 2005 book blue ocean strategy. These systems started to gain popularity in the 1970s with consoles that played only pong. Innovation, new market space and creating demand are central characteristics.
Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. Sep 24, 2017 in 2005, blue ocean strategy, expanded edition. In the international bestseller blue ocean strategy, w. Companies face cutthroat competition within defined and accepted industry boundaries. It sold more than 4 million copies and has been translated into 44 different languages. Rote ozeane red oceans hingegen bezeichnen gesattigte markte, charakterisiert durch harte konkurrenz, uberfullt mit. Blue ocean strategy is a bad book, but it is not your usual bad book. Blue ocean strategy presents a systematic approach to making the competition irrelevant and outlines principles and tools any company can use to create and capture their own blue oceans. How to create uncontested market space and make the competition irrelevant, professors w. The authors conclude that the blueocean strategy or innovation approach is sustainable. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking away from the competition. It has sold over 4 million copies and is being translated in a recordbreaking 46 languages. Jan 21, 2015 in their 2005 book entitled, blue ocean strategy.
How to create uncontested market space and make the competition irrelevant unabridged by w chan kim, renee mauborgne isbn. It presents a systematic approach to making the competition irrelevant and outlines principles and tools any organization. Jul 30, 2017 this strategy can work in the short run but it is a lot wiser for people to fast embrace the blue ocean strategy. Aug 27, 2012 to create a blue ocean strategy, organizations must be committed to value innovation.
Essay about blue ocean strategy 825 words bartleby. 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. 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 premise of blue ocean strategy is, as stated on page 4, red oceans represent all the industries in existence today. This strategy can work in the short run but it is a lot wiser for people to fast embrace the blue ocean strategy.