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. Aug 08, 2019 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. His book blue ocean strategy, coauthored with renee mauborgne, has sold 3. They are the authors of blue ocean strategy, which has sold over 3. 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. How to create uncontested market space and make the competition irrelevant, a book by professors w. List the factors the customer cares about, and current dimensions of competition. Renee mauborgne 1963 is a professional and a professor of strategy at insead. Closing the gap between blue ocean strategy and execution. Blue ocean strategy is when an organization breaks away from the conventional approach to facilitate the creation of new uncontested market space thereby making competition irrelevant.
Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. Blue ocean leadership involves a four step process developed by w. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. Blue ocean strategy authors reveal how they sold 4m. It is, quite possibly, one of the best selling business books ever published.
How to create uncontested market space and make competition irrelevant, is a market space that is undeveloped, and untapped by competitors. To create a blue ocean strategy, organizations must be committed to value innovation. May 30, 2017 it reduced costs by using plastic instead of metal, for example, and reducing the parts in each watch from 150 to 50. Study 31 terms blue ocean strategy flashcards quizlet. 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. The first part presents key concepts of blue ocean strategy, including value innovation the simultaneous. Chan kim biography, publications and books toolshero.
Blue ocean strategy is, itself, a blue ocean in the strategy world. View notes blue ocean strategies summary from mgmt 430 at university of washington. The book suggests that any implementation should engage employees in strategic decisions that affect. Sounds simple, but most organizations dont practice fair process. It reduced costs by using plastic instead of metal, for example, and reducing the parts in each watch from 150 to 50.
Jan 07, 2012 you have probably heard about or read blue ocean strategy by w. How to create uncontested market space and make the competition irrelevant from the worlds largest community of rea. Fair process is a key pillar of blue ocean strategy that is central to building execution into strategy. The authors came in a second spot on the thinkers 50 for 2011. Blue ocean strategy formulation the four principles of. Blue ocean shift is the essential follow up to blue ocean strategy, the. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. It calls for profiles for leaders that are tailored to the very different. This, the authors refer to as the cornerstone of the blue ocean strategy. 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. The blue ocean strategy implementation scenario case offers a set of interactive group scenarios which are designed to deepen the participants understanding of blue ocean strategy implementation principles.
This is also called fair process, in an incredible book, blue ocean strategy by. This article is about the combination of the blue ocean strategy together with a project management methodology with the objective to help small and medium companies to surpass the actual financial turmoil and tough competitiviness in the red ocean in order to find their own blue ocean. 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. As mentioned by spencer johnson in who moved my cheese. To draw a blue ocean strategy, focus on the big picture and reach beyond existing demand, a good strategy has three qualities. 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. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute.
It is built based on our strategy practices in the field with. Blue ocean strategy term pioneermigratorsettler pms map. Blue ocean strategy is a book published in 2005 and written by w. Blue ocean strategy proposes that businesses can have more success by creating a blue ocean, rather than trying to compete in the red ocean. It is based on the three e principles of engagement. It is being published in a recordbreaking 44 languages and is a w. The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. The blue ocean strategy implementation selfdiagnostic is comprised of a series of probing questions that offer executive participants a practical tool for assessing the level of organizational hurdles that exist in their organization and the effectiveness of past and future strategies to overcome them. Tipping point leadership and fair process in action the case centre, for educators. Create a new market space through innovating on the value you give to the customer. Fair process may sound like a soft issue, but understanding its value is crucial for managers trying to adapt their companies to the demands of the knowledgebased economy. Motivating people requires more than overcoming organizational hurdles and winning peoples trust with fair process.
How to create uncontested market space and make the competition irrelevant by w. They apply a decisionmaking strategy that jerry describes as by consensus. Organizations must make fair process the modus operandi. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. Tipping point leadership and fair process in action.
Blue ocean leadership is designed to be applied across the three distinct management levels. Renee mauborgne biography, publications and books toolshero. Blue ocean shift, however, provides a clear process for business identifying opportunities and developing plans for. It has been translated into 42 languages and sold over 2 million copies so it fair to say it has made quite a splash. Nov 14, 2008 to draw a blue ocean strategy, focus on the big picture and reach beyond existing demand, a good strategy has three qualities. Blue ocean strategy is the result of a decadelong study of 150 strategic moves spanning more than 30 industries over 100 years 18802000. Sep 24, 2017 in 2005, blue ocean strategy, expanded edition. Build execution into strategy be fair in the book, the author focus on the fair process. Blue ocean strategy chapter 14 the four action framework chapter two. When fair process is exercised in the strategy formulation phase, people trust that a level playing field exists, inspiring voluntary cooperation during the execution phase. While blue ocean strategy helped to identify new avenues for strategic success, it fell short on providing the actual steps needed to jump from a crowded marketplace into the fabled blue ocean of the title. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Blue ocean strategies a summary blue ocean strategy is a business strategy book first published in 2005 and. She is also cofounder of the blue ocean strategy and codirector of the blue ocean strategy institute.
The best book for noncompetitive strategy striving. Chan kim and renee mauborgne that builds execution into strategy by creating peoples buyin up front. Listen to these blue ocean donors very carefully with engaging, accepting respect 4. Chan kim and renee mauborgne, published by harvard business school press, boston, massachusetts, 2005, isbn 97815996192 blue ocean strategy is a business strategy book, first published on february 3, 2005. Chan kim and renee mauborgne, professors at insead. It requires the right research, patience and focus. Tools and frameworks for creating and capturing blue oceans it is constructed to create a new value curve and when you apply the four actions framework to the strategy canvas of your industry, you get a. Blue ocean strategy how to create uncontested market. You have probably heard about or read blue ocean strategy by w. Chan kim and renee mauborgne of the blue ocean strategy institute and professors at frances insead business school and cofounders of the value innovation.
The premise of the book is that companies can succeed by creating. Apr 10, 2012 blue ocean strategy six principles of blue ocean strategy executing blue ocean strategy build execution into strategy fair process of strategy strategy formulation process 3es fair process engagement, explanation, expectation clarity attitudes trust and commitment i feel my opinions counts behavior voluntary cooperation i. Some equate it to the work we find in peter thiels zero to one. How to create uncontested market space and make the competition irrelevant. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of.
Competitive forces different business units face different structural conditions with different resources, capabilities and different strategic mind. And fish for a blue ocean cluster of neighbors to serve and a red ocean strategy 1. Blue ocean shift is the essential followup to blue ocean strategy, the classic and over 4 million copy global bestseller by worldrenowned professors chan kim and renee mauborgne drawing on more than a decade of new research, blue ocean shift is the definitive guide to help you move beyond competing, inspire your peoples confidence, and seize new growth. The blue ocean strategy and shift promote a fresh look at innovation webwire,japan to achieve high growth, organizations need to focus on noncustomers and capturing new markets instead of competing among crowds of challengers, advises w. Blue ocean strategy how to create uncontested market space. The premise on which the blue ocean strategy thesis is built, is a simple one. May 17, 2019 blue ocean strategy is, itself, a blue ocean in the strategy world.
Using the five scenarios participants work in teams as they learn to apply key concepts of tipping point leadership and fair process. It allows leaders to gain a clear understanding of just what changes it would take to bring out the best in their people, while conserving their most precious resource. Here we develop an alternative approach to the existing strategic planning process that is based not on preparing a document but on drawing a strategy canvas. Companies pursue blue ocean strategies to make competition irrelevant. The seminal book blue ocean strategy has sold over 4 million copies globally and is in print in 46 languages. Without fair process it will be hard to implement a strategy. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. That is a fine book and an extension of blue ocean thinking.
The authors of blue ocean strategy reveal how they sold. Chan kim at the panasonics crossvalue innovation forum 2018 in tokyo. Blue ocean strategy from business strategy gurus a to z. Blue ocean strategies summary blue ocean strategies a. The blue ocean strategy implementation scenario case offers a set of. The fourstep process is designed around the concepts and analytic tools of blue ocean strategy and fair process. This approach consistently produces strategies that unlock the creativity of a wide range of people within an organization, open companies eyes to blue oceans, and are easy to. The risks of following a blue ocean strategy the adaptive. A structured process of visual awakening, exploration, strategy fair and communication pushes a companys strategy towards blue ocean. Blue ocean strategy introduces analytical tools to minimize risk.
It is being published in a recordbreaking 44 languages and is a bestseller across five. When fair process is exercised in the strategy formulation phase, people trust that a level playing field exists, inspiring voluntary cooperation during the. The blue ocean strategy implementation selfdiagnostic is comprised of a series of probing questions that offer executive participants a practical tool for assessing the level of organizational blue ocean strategy implementation selfdiagnostic. Blue ocean strategy blue ocean strategy is a business strategy book published in 2005 by harvard business school publishing corporation in united state of america, it was written by w. By fair process we mean engaging all the affected people in the process, explaining to them the basis of decisions and the reasons people will be promoted or sidestepped in the future, and setting clear expectations of what that means to employees performance. He is the coauthor, along with renee mauborgne, of the book blue ocean strategy. Blue ocean strategy is a bad book, but it is not your usual bad book.
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