The goal of a blue ocean strategy is for organizations to find and develop blue oceans uncontested, growing markets and avoid red oceans overdeveloped, saturated markets. Discussion blue ocean strategy versus red ocean strategy every blue ocean company would ultimately reach to. 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. Red ocean strategies focuses on competing in a marketplace that already exists and beating the game. Blue ocean strategy is a powerful framework for finding new business opportunities.
What is distinctive about blue ocean strategy as a. Implementing the blue ocean strategy is, simply put, a gargantuan task. Blue ocean strategy with boss business simulation stratx. The value of having a blue ocean strategy is better understood when compared to a red ocean strategy. The concept of blue ocean strategy first took the business world by storm in 2005 when authors w. A red ocean is a saturated market with industry competitors. So blue ocean strategy is about how can any company or organization break out. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. Want more secrets and tricks like the blue ocean strategy. Sarah layton in blue ocean strategy on april 21, 2009. An introduction to blue ocean strategy mba knowledge base. Our aim is to make the formulation and execution of blue ocean strategy as systematic and actionable as competing in the red waters of known market space.
This blog article is a overview of some of the key points of the book by w. Blue ocean strategy powerpoint templates present better. These systems started to gain popularity in the 1970s with consoles that played only pong. To understand red ocean strategy let us begin by defining blue ocean strategy.
The authors use the metaphor of the blue ocean as a direct contrast to red oceans. Chan kim and renee mauborgne, develops and explains how to beat the competition by reaching beyond it into new unexplored markets. Blue ocean strategy can be applied across sectors or businesses. Blue ocean strategy adalah strategi menciptakan ruang pasar baru yang belum termanfaatkan. Bos is all about minimizing risks due to competition threat and maximizing opportunities by exploring new boundaries. Generating new demand lies at the heart of any marketcreating strategy. Blue ocean strategy displays an orderly way to deal with making the challenge unessential and traces standards and instruments any organization can use to make and catch their blue seas. But, lets first understand what is blue ocean and how it is different from red ocean strategy. Importance of the blue ocean strategy to a business. See comparison between red and blue ocean strategies here in one simple table.
But its not always clear how to create a blue ocean strategy for yourself. Namun ternyata, kesuksesan sebuah perusahaan kini tidak lagi diukur dengan memenangi persaingan berdarahdarah di red ocean strategy. Chan kim and renee mauborgne wrote a bestselling book, blue ocean strategy, which has been translated into 43 languages. Blue ocean strategy provides a systematic approach to break out of the red ocean of severe competition and make the competition irrelevant by reconstructing market boundaries to create a leap in value for both the company and its buyers. 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. In this article you will learn how to make your competition irrelevant and have sales and profit. These strategies are used in organizations by top level executive managers for long term organizational sustainability and to face or deviate from the competition. Red ocean in blue oceans, demand is created rather than fought over. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. This new market space is created by launching new offerings, with the aim being to make the competition irrelevant so that an organization can grow, uncontested, at least in the beginning. Your course participants will truly experience the power of blue ocean strategy by applying the theory and using the methodologies and tools described in the book. The authors describe red oceans as the existing industries in a known market space. Blue ocean strategy pdf blue ocean strategy five keys to blue ocean strategy blue ocean strategy 2004 blue ocean strategy expanded edition book summary blue ocean strategy blue ocean strategy book by w.
Blue ocean strategy, outlines the processes of removing the fight for competitive advantage and the battle for differentiation typical of many corporate strategies. How to create uncontested market space and make the competition irrelevant pdf by w. The red ocean strategy focuses on the competition, while the blue ocean strategy is all about innovation. Itu sebabnya kini hadir istilah baru yang disebut blue ocean strategy. 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. Watch this video to understand the essence of blue ocean strategy, the worldwide bestseller written by worldrenowned professors chan kim. Blue ocean strategy is the 2015 update to the classic business strategy text of the same name originally published in 2005.
How to create uncontested market space and make the competition irrelevant, a book by professors w. Professors of strategy at insead and codirectors of the insead blue ocean strategy institute. While competitionbased red ocean strategy assumes that an industrys structural conditions are given and that. Value innovation strategy competes in an uncontested market space. Innovation, new market space and creating demand are central characteristics. How does blue ocean strategy differ from red ocean strategy. Blue ocean strategy is a concept that has been pioneered by insead professors, w. Pdf blue ocean strategy as a tool for improving a companys. Like the blue ocean, it is vast, deep and powerful in terms of opportunity and profitable growth. Blue ocean strategy is where a company creates a completely new market space or market category. Companies face cutthroat competition within defined and accepted industry boundaries. There is ample opportunity for growth that is both profitable and rapid. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy.
But its much more common for a blue ocean to be created from within a red ocean when a company expands the boundaries of an existing industry. Blue ocean strategy is a book published in 2005 and written by w. 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. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. 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. History and background a video game console is just a computer that is made only. How to create uncontested market space and make the competition irrelevant. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. When we think of competition between companies like coke and pepsi or walmart and costco, we think of competitors fighting to get the biggest share of. Achieved via the delivery of features that have a highest marginal benefit to customer needs. The chart above summarizes the distinct characteristics of competing in red oceans red ocean strategy versus creating a blue ocean blue ocean strategy.
The blue ocean strategy simulation was designed with extensive input from the authors of the bestselling book blue ocean strategy. Download it once and read it on your kindle device, pc, phones or tablets. 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. First published in 2005, it was updated and expanded with fresh content in 2015. But many companies have done their homework and succeeded thanks to this strategy. The authors use the terms blue oceans and red oceans to describe the entire market universe.
The text offers a practical handbook to business students and entrepreneurs who wish to rise above the fray of the competition, become pioneers in previously uncharted market territory, and gain access to impressive growth opportunities and an untapped customer base. 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. The books blue ocean strategy and blue ocean shift both provide insights on how you can create an offering so differentiated that you become a category of one and dominate a. How to find and capitalize on a previously unknown market space. These competitors may possess a competitive advantage driven by cost, differentiation, or niche market strategies. How to create uncontested market space and make the competition irrelevant, w. 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. In red oceans, industry boundaries are defined and accepted, and the.
It is aimed at enriching blue ocean strategy with a case study in which we see the process of creating a blue. Origin of the terms professors chan kim and renee mauborgne introduced the concepts of red and blue oceans in their international bestseller blue ocean strategy. Blue ocean strategy including examples and pdf download. Red oceans are all the industries in existence today. However, blue ocean strategy provides a robust mechanism to mitigate risks and increase the odds of success. Eight key points of blue ocean strategy heres the essence of blue ocean strategy captured in eight key points. Only then can companies step up to the challenge of creating blue oceans in a smart and.
Red oceans represent all the industries in existence todaythe known market space. They are the authors of blue ocean strategy, which has sold over 3. A red ocean strategy is a strategy that aims to fight and beat the competition. The result of the competition is destruction, which draws the analogy of red blood in. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition.675 654 654 1526 1503 1224 1101 821 265 878 1201 827 925 252 551 679 318 7 512 30 1369 300 1334 934 67 469 1062 621 553 443 1023 117 148 213