Blue ocean strategy is the most successful book on business masterplanning the economist a great read for any leader looking to get a real edge in business and establish a real competitive advantage in the market. Blue ocean strategy powerpoint template is a professional and modern presentation for the description or explanation of the blue ocean strategy theory. Strategy canvas excel template blue ocean strategy subject. Reviewing the blue ocean strategy universiteit twente. Blue ocean strategy business model blue ocean tools and. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Some strategic planning models are based on theories that dont quite pan out during gotomarket executions. The blue ocean strategy book has been sold over 3,5 million times, was published in 43 languages and is a bestseller across five continents. But wait, there was another blue ocean in the seventies according to the authors, when the japanese three competitors. By reorienting a company towards the factors being. The strategy canvas captures the current strategic landscape and future prospects for a company.
We use cookies to ensure you get the best experience on our website and continuing implies your consent read our full cookie policy okay, dont show me againread our. This sounds easier than it is to break out of your old mindsets. 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 niche strategy adopted by general motors increased overall market share from 20% to 50%. The premise of the book is that companies can succeed by creating. 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. How to create a billion dollar blue ocean strategy canvas.
Blue ocean strategy formulation the strategy canvas. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. Blue ocean strategy is a book published in 2005 and written by w. Value innovation strategy competes in an uncontested market space. Blue ocean strategy case study service nsw 3 1 introduction blue ocean strategy1 has been used extensively to transform the public sector around the world at a local, state and national level. Blue ocean strategy chapter 14 the four action framework chapter two. The essential analytics used throughout this case study are pioneermigratorsettler pms map, as is strategy canvas, threetier of noncustomers, buyer utility map bum, six paths framework.
One of the strengths of blue ocean strategy is that it is a way of thinking before you begin to do anything. The strategic logic of high growth hbr julyaugust 2004. In the example above we can see that southwest airlines has used car travel thinking to create an area of differentiation to their strategy author note. To fundamentally shift the strategy canvas of an industry, you.
A strategy canvas is the most fundamental tool used in the blue ocean strategy framework. Business model canvas with blue ocean strategy by hpa. This allows them to build a viable business model and ensure that a company profits from the blue ocean it is creating. In this article you will learn how to make your competition irrelevant and have sales and profit. Creating blue ocean markets using the strategy canvas open. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was. Do design a blue ocean strategy one must use the strategy canvas as tool for creating and developing the strategy and setting the business apart through developing the value curve based on the errc grid which stands for eliminatereduceraisecreate indicating which factors within the industry need to be eliminated, which need to be reduced. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Blending of opera and ballet with circus format while eliminating. It reduced costs by using plastic instead of metal, for example, and reducing the parts in each watch from 150 to 50.
Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. It graphically captures, in one simple picture, the current strategic. Blue ocean strategy excel template think outside of the box. The strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. Each tool has a slide for the description and application within the strategy analysis. 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. Strategy canvas from blue ocean strategy shortform blog. Blue ocean strategy including examples and pdf download. This tool is the central diagnostic and action framework for building a compelling blue ocean strategy. Before moving any further with a discussion on the strategy canvas, we need to go over the blue ocean strategy first. Blue ocean strategy makes companies to come out of ocean of bloody competition by creating market space which is uncontested and that makes the completion irrelevant.
Furthermore the blue ocean strategy was awarded with. Standard for permanence of paper for publications and documents in libraries and. To get started, first list the products or services you want to compare. Blue ocean shift is packed with realworld examples of organizations facing the same constraints we all face be they politics, bureaucracy, or limited resources that applied the very tools and process outlined in the book to shift from competi. These are how you will shift your strategic canvas into new territory. The six paths framework in formulating blue ocean strategy. Blue ocean strategy is a consistent pattern of strategic thinking behind the creation of new. Create your citations, reference lists and bibliographies automatically using the apa, mla, chicago, or harvard referencing styles. This allows you to understand where the competition is currently investing, the factors the industry currently competes on in products, service, and delivery, and what. It is designed to give you an immediate snapshot of how your businessproductservice stacks up against the competition. At some stage, numbers and documents must be compiled and discussed. Since, dividing up existing demand and benchmarking the competitors, blue ocean strategy is.
This is in contrast to the c o m p e tit i v e s t r at e gy ap p r o a c h where a large and growing alreadyserved market is identified and the entering firm tries to find a way to. In the book blue ocean strategy written by two eminent business theorists w. First and foremost on their list is a tool used to break out of competition and make competition irrelevant called the strategy canvas. Pdf blue ocean strategy as a tool for improving a companys. Apple observed the flood of illegal music file sharing that began in the late 1990s. Chan kim and renee mauborgne, this new strategy was originated. Once youve identified a few of your blue ocean opportunities, you will need to make sure that your blue oceans are really blue oceans. The strategy canvas is similar to the competitive analysis you might find in a qfd house of. To fundamentally shift the strategy canvas of an industry, you must begin by. Southwest koos er onder andere voor minder kosten te. The strategy canvas is a central diagnostic tool and an action framework of blue ocean. The strategy canvas from blue ocean strategy visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. It captures the current state of play in the known market space.
See where your strategy needs to change go into the field to explore the six paths to creating blue oceans observe the distinctive advantages of alternative products or services see which factors you should eliminate, create or change draw your to. 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. 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. In contrast, blue ocean strategy originated from a study that took place over 10 years and analyzed company successes and failures in more than 30 industries.
Jan 19, 2016 this process of developing a blue ocean market is facilitated by developing the strategy canvas and by using the fad template as an input into the strategy canvas. See where your strategy needs to change go into the field to explore the six paths to creating blue oceans observe the distinctive advantages of alternative products or services see which factors you should eliminate, create or change draw your to be strategy canvas based on insights from field. By reorienting a company towards the factors being ignored, it can capture uncontested market space. Blue ocean strategy ppt slides linkedin slideshare.
What are some successful examples of blue ocean strategy. In the contoso hotels strategic canvas, you can see the shift in their focus and their brand. The six paths framework in formulating blue ocean strategy are 1 look across alternative industries, 2 look across strategic groups within industry, 3look across buyer groups, 4 look across complementary product and service offerings, 5look across the functionalemotional orientation of an industry and 5look across time to shape trends. Companies need to build their blue ocean strategy in the sequence of buyer utility, price, cost, and adoption. Strategy canvas value curve for chocolate companies in jordan. This blog article is a overview of some of the key points of the book by w. Blue ocean strategy powerpoint template slidemodel. Southwest koos er onder andere voor minder kosten te maken voor o. It graphically captures, in one simple picture, the current strategic landscape. The authors also recommend creating a strategy canvas to show where you stand with respect to the competition. This work by the digitrans project is licensed under the creative commons attributionsharealike 4. Is it possible to apply blue ocean strategy for tourism. Jun 19, 2014 thus they have created a blue ocean strategy.
This process of developing a blue ocean market is facilitated by developing the strategy canvas and by using the fad template as an input into the strategy canvas. Chan kim and renee mauborgne, professors at insead. An introduction to blue ocean strategy mba knowledge base. Further the blue ocean strategy aims to create new best practice rule by breaking the existing value cost trade off, thereby creating uncontested market space, thus making the competition irrelevant. What determines whether blue ocean strategy is a innovation or generation analytical tool highly depends on the sequence that is used. Blue ocean strategy the strategy canvas click here to read this article. Drawing a strategy canvas is not, of course, the only part of the strategicplanning 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 insead blue ocean strategy institute is dedicated to extending the research on blue ocean shift, blue ocean strategy, and blue ocean leadership by. Tru group inc blue ocean strategy belongs in the dead sea. Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to.
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