The strategy canvas is both a diagnostic and an action framework for building a. Value innovation value innovation is created in the region where a companys actions favorably affect both its cost structure and its value proposition to buyers. May 26, 2015 summary of the first four chapters of the international bestseller blue ocean strategy. Miro has multiple exporting options, like saving to pdf. 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 such as the strategy canvas and the four actions framework. 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. Download it once and read it on your kindle device, pc, phones or tablets. Blue ocean strategy can be found on amazon blue ocean strategy. Chen, information systems theory and practices red ocean vs. Oct 09, 2017 a four action framework for blueocean innovation. By creating this plot, you can find imbalances in your strategy, such as only raising and creating which leads to overengineering and trying to be the best or only eliminating and reducing which leads to mere price competition. Blue ocean strategy with boss business simulation stratx. Blue ocean strategy is a landmark idea founded by w.
Chan kim and renee mauborgne tackle the central problem facing all businesses. Pdf impact of blue ocean strategy on organizational. Pdf harvard business school press blue ocean strategy rajeh. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure.
You may or may not agree with the central philosophy, but you will be inspired. They assert that these strategic moves create a leap in value for the company. Four actions framework of blue ocean applied to jet blue. After having dealt with the blue ocean metaphor as well as having clarified the concept of value innovation, the chapter moves on by describing the basic analytical tools and frameworks that characterize the blue ocean strategy. How to create uncontested market space and make the competition irrelevant, a book by professors w. 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. What is distinctive about blue ocean strategy as a theory.
They are professors of strategy at insead, one of the worlds top business schools, and codirectors of the insead blue ocean strategy institute in fontainebleau, france. Blue ocean strategy including examples and pdf download. Then the blue ocean practical introduction course is right for you. The concept of blue ocean is based on the idea that the business universe is made up. Jul 16, 2015 in this article, we will look at 1 what is a blue ocean strategy. How to create uncontested market space and the make. Everyday low prices and free delivery on eligible orders. Your productservice must raise and create customer value gain and simultaneously reduce and eliminate features or services that are less valued, or not valued at all, the customer pain. The four actions framework and errc grid tweet after you define the three tiers of non customers, the idea is that you poll these noncustomers and find out what it would take to purchase your product or service. A good blue ocean strategy has items in each of the four grids. 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. Feb 03, 2015 buy blue ocean strategy, expanded edition revised ed. Blue ocean strategy chapter 14 the four action framework chapter two.
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. Blue ocean strategy formulation the four principles of. Use our free blue ocean 4 actions framework template to create, collaborate on with your. Sep 26, 2016 the strategy canvas provides a highly visual tool to help look at future options. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Chan kim and renee mauborgne in their book titled blue ocean strategy. A fouraction framework for blueocean innovation the. This blog article is a overview of some of the key points of the book by w. 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. How is blue ocean strategy different from a classic differentiation strategy. In this article, we will look at 1 what is a blue ocean strategy. Blue ocean strategy case study service nsw 4 2 background to the establishment of service nsw australia has a threetiered system of government the federal or commonwealth government of australian, state governments and local government.
How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. 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. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. The fouractions frameworkon blue ocean strategy to reduce, create, raise and eliminate industry practices to create a blue ocean fromthe industry red ocean. About the blue ocean 4 actions framework template who created blue ocean 4 actions template. Sep 24, 2017 blue ocean strategy requires a different mindset. Chan kim and renee mauborgne in the indie business book club. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. Without analytic frameworks to create blue oceans and principles to. Blue ocean strategy as a tool for improving a companys marketing function. The four actions framework is used to help create value innovation and break the valuecost trade. Chan, mauborgne, renee, mauborgne, renee a download it once and read it on your kindle device, pc, phones or tablets. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking.
It was built on the notion of creating new markets where competition is irrelevant and the opportunity to grow and be profitable is unlimited. In a blue ocean you change the playing field of strategy. Strategy canvas four actions framework errc grid six paths framework pioneer. Value innovation is created in the region where a companys actions favorably affect both its cost structure and its value proportion to buyers. Mar 15, 2014 four actions framework of blue ocean applied to jet blue 1. The best strategy books of alltime updated for 2020 benzinga. What is the blue ocean strategy the term blue ocean was coined by two professors w.
Chan kim and renee mauborgne, professors at insead. Drawing on more than a decade of new work, kim and mauborgne show you how to move beyond competing, inspire your peoples confidence, and seize new growth, guiding you. Blue ocean strategy and new business models in the food. Value innovation strategy competes in an uncontested market space.
Blue ocean shift is the essential followup to blue ocean strategy, the classic 3. The second is the four actions framework, which provides insight into potential blue oceans. Summary capter 1 4 of blue ocean strategy by lauri di vino. In their 2017 new york times bestselling book, blue ocean shift, kim and.
Buy blue ocean strategy, expanded edition revised ed. Four actions framework blue ocean strategy shortform blog. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. While this came in appendix a in the book, this is a good time to cover three industries with repeated blue ocean creation.
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 4 actions framework use our free four actions. Together, they wrote a bestselling book blue ocean strategy. Blue ocean strategy and sustainability for strategic management. Each industry underwent continuous upheaval, each time spurred by a blue ocean strategy that 1 reduced factors unimportant to buyers, 2 increased factors important to buyers, 3 expanded the market. Blue ocean strategy on jet blue case study by neil k. 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.
How to create uncontested market space and make the competition irrelevant, a. Blue ocean strategy how to create uncontested market space and make the competition irrelevant w. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. 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. Blue ocean strategy is a book published in 2005 and written by w. Made by group d of the minor global trendwatching 2015. Summary of the first four chapters of the international bestseller blue ocean strategy.
Pdf blue ocean strategy as a tool for improving a companys. Blue oceans strategy is the approach that suggests a company is better off searching for ways to play in uncontested market places instead of engaging with. But, lets first understand what is blue ocean and how it is different from red ocean strategy. The four actions framework aids in eliminating the tradeoff between. Blue ocean strategy can be applied across sectors or businesses. May 30, 2017 t his month, we read blue ocean strategy by w. Eight key points of blue ocean strategy heres the essence of blue ocean strategy captured in eight key points. The blue ocean strategy simulation was designed with extensive input from the authors of the bestselling book blue ocean strategy.