Blue ocean strategy proposes that businesses can have more success by creating a blue ocean, rather than trying to compete in the red ocean the traditional market space that is filled with feuding competitors. Summary of the first four chapters of the international bestseller blue ocean strategy. Relationship between the price and the indicator is not random, it tells a story for the divergence. Sep 24, 2017 in 2005, blue ocean strategy, expanded edition. Blue ocean vs red ocean strategies 6 major differences red bull case study published on june 2, 2016 june 2, 2016 91 likes 5 comments.
Blue ocean strategy for people who dont have time to read text books. Let me try to explain this in simple terms for the benefit of everyone. Long enough to describe the strategy and explain the pitfalls, but not padded too far. But, lets first understand what is blue ocean and how it is different from red ocean strategy. Blue ocean vs red ocean strategies 6 major differences red bull. The blue ocean strategy means that you find some aspect of your market that no one is doing, and try to dominate that, rather than fighting it out with other vendors in your space a red ocean strategy. The chart above summarizes the distinct characteristics of competing in red oceans red ocean strategy. In red oceans, business leaders and entrepreneurs are in a cage of creating competitive strategies as dominant business thinking. 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.
This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. Besides that, it is a book penned by two friends, which by the way is something that i. Red bull assignment example topics and well written essays. Jul 28, 2018 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. 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. They published these findings in a 2005 book called the blue ocean strategy, which detailed what the strategy meant, examples. Marketing strategy every blue ocean will eventually turn. Its authors, insead professors w chan kim and renee mauborgne, continued their steady progress up the thinkers50 list, finishing second to christensen this year. Blue ocean strategy can be found on amazon blue ocean strategy.
Made by group d of the minor global trendwatching 2015. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. Everyday low prices and free delivery on eligible orders. Red ocean blue is focused, disciplined, honest and there is absolutely no b. Like the blue ocean, it is vast, deep and powerful in terms of opportunity and profitable growth. The strategy canvas provides a highly visual tool to help look at future options. In this book summary of blue ocean strategy, well outline the key concepts, tools and tips from the book to help you create uncontested market space and make your competition totally irrelevant. Oct 31, 2011 red bull blue ocean strategy presentation explores red bulls strategic management and marketing tactics. Blue ocean strategy is the most successful book on business masterplanning.
Henry ford, launching the automobile, had a blue ocean strategy. Red bull blue ocean strategy presentation explores red bulls strategic management and marketing tactics. A blue ocean strategy in contrast, denote all the industries not in existence today the unknown market space, untainted by competition. May 26, 2015 summary of the first four chapters of the international bestseller blue ocean strategy. How to create uncontested market space and make the competition irrelevant, a book by professors w. Analyze the trend of the 1minute through the 60minute charts. Chan kim and renee mauborgne, are both prominent professors at insead in fontainebleau, france. How to create uncontested market space and make competition irrelevant by w. Blue ocean strategy can be applied across sectors or businesses.
Therefore the market is usually heavily populated by competition and there are a set of rules that is known. 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 authors use the metaphor of the blue ocean as a direct contrast to red oceans. These systems started to gain popularity in the 1970s with consoles that played only pong. In the red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known.
You can discover how much you know about it, including why it was first considered confrontational, by using the quiz. See comparison between red and blue ocean strategies here in one simple table. They represent businesses that may not be around today, or werent around until they came on to the scene. How to create uncontested market space and make competition irrelevant, is a market space that is undeveloped, and untapped by competitors. 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. You may or may not agree with the central philosophy, but you will be inspired. B2b consultants, web agencies, growth hackers and entrepreneurs even farmers can apply. The strategy clearly brings out the fact that the only way to beat competition is to stop trying to beat it. May 30, 2017 t his month, we read blue ocean strategy by w. Let us say the market that we operate is an ocean cle. Most blue oceans are created from within red oceans by expanding existing industry boundaries. Blue ocean strategy is a book published in 2005 and written by w.
Book blue ocean strategy how to survive in a red ocean. Buy blue ocean strategy, expanded edition revised ed. 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. After years and years of surviving in red bloody oceans, swarming with murderous competitors, finally theres a better alternative. Chan, mauborgne, renee, mauborgne, renee a download it once and read it on your kindle device, pc, phones or tablets. A blue ocean strategy is based on creating demand that is not currently in existence, rather than fighting over it with other companies. To create a blue ocean strategy, organizations must be committed to value innovation. Before that momentous event, people could go by train, by horse, or on foot to wherever they wished to go.
A instead of competing in existing industries, blue ocean strategy equips companies with frameworks and analytic tools to create their own blue ocean of. Presentation by robert wensley, brett lashley, joann slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Red ocean blue s mission is to help you make it keep it. Blue ocean strategy and blue ocean shift, created by worldrenowned professors chan kim and renee mauborgne, is a new way of thinking, a movement away from a.
Blue oceans denote all the industries not in existence today the unknown market space, unexplored and untainted by competition. Blue ocean strategy is a bad book, but it is not your usual bad book. In blue oceans, demand is created rather than fought over. Red bull blue ocean strategy presentation explores red bull s strategic management and marketing tactics. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. Value innovation strategy competes in an uncontested market space. Red bull is now the leader in a red ocean energy drink segment so perhaps introduce blue bull as a blue ocean product that does the opposite of an energy drink. Red ocean markets are large and the rate of product innovation is low. Blue ocean strategy is a business strategy book, first published on february 3, 2005 by the harvard business school press. Vthe cornerstone of blue ocean strategy is value innovation. Blue ocean strategy including examples and pdf download. Feb 03, 2015 buy blue ocean strategy, expanded edition revised ed. History and background a video game console is just a computer that is made only. I can only think of nyquil as a comparable drink product, but nyquil is a cold remedy product with.
Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. In contrast, blue ocean strategy is about how to get out of established market boundaries to leave the competition behind. All in all, blue ocean strategy is a book worth reading. How does blue ocean strategy differ from red ocean strategy. Achieved via the delivery of features that have a highest marginal benefit to customer needs. 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. Remember, the whole idea of blue ocean strategy is to have high value at low cost. If you are doing that, how can anyone compete with you.
A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. Back in 2008, i wrote a paper on blue ocean strategy which was published at the international conference on management. Sep 26, 2016 the strategy canvas provides a highly visual tool to help look at future options. Unlike red oceans, which are well explored and crowded with competitors. This blog article is a overview of some of the key points of the book by w. The authors stress that value and innovation must work together simultaneously in order to develop a blue ocean strategy. Download citation blue ocean strategy despite a longterm decline. Their book, blue ocean strategy, heralded the news to marketing managers and ceos all over the world.
Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. Blue bull calms people down, helps them to relax, or fall asleep in the evening. But its much more common for a blue ocean to be created from within a red ocean. Copy of red and blue ocean free download as powerpoint presentation.
Blue ocean vs red ocean strategies 6 major differences. Innovation, new market space and creating demand are central characteristics. May 31, 2016 in this book summary of blue ocean strategy, well outline the key concepts, tools and tips from the book to help you create uncontested market space and make your competition totally irrelevant. Blue ocean strategy proposes that businesses can have more success by creating a blue ocean, rather than trying to compete in the red ocean the traditional market.
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. 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. Chan kim and renee mauborgne, develops and explains how to beat the competition by reaching beyond it into new unexplored markets. Chan kim and renee mauborgne in the indie business book club. Blue ocean strategy is where a company creates a completely new market space or market category. You can discover how much you know about it, including why it was first. The blue ocean strategy concerns itself with creating uncontested market space. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. You must keep in mind that there is a deeper potential of the marketplace that hasnt been explored yet.
In simple terms, red ocean strategy is about how to outpace rivals in existing market space. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. A global bestseller and one of the best business strategy books available, blue. Sep 02, 2008 their book, blue ocean strategy, heralded the news to marketing managers and ceos all over the world. 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. As i was thinking of this, i thought about the book blue ocean strategy written by kim and mauborgne which i read recently after it was recommended by my friend jonah nyoni. Red ocean and blue ocean approach to industry boundaries. Pdf impact of blue ocean strategy on organizational.
Student questions blue ocean strategy from anonymous. Discussion blue ocean strategy versus red ocean strategy every blue ocean company would ultimately reach to the level of red ocean category as. This study is based on the pros and cons of the blue ocean strategy bos that offers users a framework for creating uncontested market space and diverts the views from the current competition to. They are rivaling head to head with their competition over the same consumer segments. To understand red ocean strategy let us begin by defining blue ocean strategy. An introduction to blue ocean strategy mba knowledge base.
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