Yet, the blue ocean metaphor is also misleading, for it suggests that the red versus blue distinction is the main distinct and new contribution of the book. He is best known for coauthoring the book blue ocean strategy and ranked second in the thinkers50 of the most influential management thinkers alive. The idea behind the book is the advantages of the blue ocean strategy over the red ocean strategy. How to create uncontested market space and the make competition. It is being published in a recordbreaking 46 languages and is a bestseller across five continents. His book blue ocean strategy, coauthored with renee mauborgne, has sold 3. Drawing on more than a decade of new work, kim and mauborgne show you how to move beyond. How to create uncontested market space and make the competition irrelevant. This bibliography was generated on cite this for me. Their solution involves taking a creative approach to the normal view of competition. Mcdonalds using blue ocean strategy essay 479 words. Super fast and accurate citation program save time when referencing.
A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. How to create uncontested market space and make competition irrelevant, is a market space that is undeveloped, and untapped by competitors. The limitations of blue oceans strategies and an unexpected alternative author. Renee mauborgne in a book that challenges everything you thought you knew about the requirements for strategic success, kim and mauborgne argue that cutthroat competition results in nothing but a bloody red ocean of. This article describes how to break free of these red ocean traps. Well, according to professors w chan kim and renee mauborgne, authors of famous book blue ocean strategy, striving to penetrate the competition in an dominant market is a bad business strategy.
It is being published in a recordbreaking 44 languages and is a w. Covering topics none of your competitors are touching. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. The concept of blue ocean strategies is new in the business world as it was first published in 2005 in the book manual blue ocean strategy, by w. These citations may not conform precisely to your selected citation style. 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. Chan kim and rene mauborgne, claimed that competition can be rendered irrelevant. Blue ocean strategy states that an organization can produce higher growth and profits by creating new demand in an uncontested market space than by competing headtohead with other suppliers for known customers in an existing industry. Based on a study of 150 strategic moves spanning more than 100 years. Mcdonalds using blue ocean strategy mcdonalds is using blue ocean strategy bos. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of. First published in 2005, it was updated and expanded with fresh content in 2015.
This bibliography was generated on cite this for me on wednesday, april 19, 2017. And finally, we will raise a certain numbers of limits to underline the fact that strategy is not a science. Drawing on more than a decade of new work, kim and mauborgne show you how to move. By that we can see that there is a lot of interest by the business people and academics around the world about that subject. To date, blue ocean strategy and blue ocean shift teaching materials have been adopted by over 2800 universities in over 100 countries across the globe. The fundamental premise of the blue ocean strategy is that as opposed to continuing to compete in the red ocean, you should try to find new space in which to sell your goods and services. A company will have more success, fewer risks, and increased profits in a blue ocean market. 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. These are the sources and citations used to research blue ocean strategy. While this came in appendix a in the book, this is a good time to cover three industries with repeated blue ocean creation. He is known as coauthor of the 2005 book blue ocean strategy. Military and corporate strategy 7776 words bartleby.
A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. 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. 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. In the normal framework, competition is a zerosum game. Blue ocean strategy katharina niciejewska, dimitar. Kim w chan and mauborgne renee in their most sellable book entitle blue ocean strategy how to create uncontested market space and make the competition irrelevant. 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. The blue ocean strategy which we boiled down to four steps is all about considering new approaches to make your blog unique by. To do so, the commercial offers of selected airlines were compared to validate any attempts to apply the blue ocean strategy concept.
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. According to kim alternative appendix figure approach blue ocean strategy build a blue business model buyer group buyer utility buyer utility map called the visual cdi challenge circuses cirque du soleil companys strategy companys value curve competition irrelevant competitors complementors concentrate consider cost innovations create a blue. These are the sources and citations used to research marketing strategy. Use features like bookmarks, note taking and highlighting while reading red ocean traps harvard. Recognized as one of the most iconic and impactful strategy books ever written, blue ocean strategy, now updated with fresh content from the authors, argues that cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. How to create uncontested market space and make the competition irrelevant, w. The article analyzes the value innovation of red collar group in shandong province based on the perspective of blue ocean strategy, using the four actions framework and the strategy canvas as the analysis tools to study the business model.
Compare and contrast the concept of blue ocean strategy. Blue ocean strategy set your company apart from competition. Please use this display as a guideline and modify as needed. This article investigates the applicability of blue ocean strategy in regard to lowcost airlines in the civil airline industry. Blue ocean strategy is the most successful book on business masterplanning. Dan herman the vast red and blue oceans of the marketing world tsunamied into our awareness and vocabulary a few years ago, when two insead professors, w. Is your business idea as innovative as a blue ocean strategy. Chan kim born 1952 is a koreanborn business theorist, professors of strategy and management at insead, and codirector of the insead blue ocean strategy institute in fontainebleau, france. Chan kim and renee mauborgne, develops and explains how to beat the competition by reaching beyond it into new unexplored markets. Everyone who has read the book blue ocean strategy by w.
Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking away from the. The authors use the metaphor of the blue ocean as a direct contrast to red oceans. To make it clear and justifying my true insight about this book, ill explain a piece of red before we go deep into the blue ocean. In a blue ocean because of the uniqueness of your offering you are able to service your customers in uncontested at least for now space.
Blue ocean strategy, also referred to as blue ocean shift, is a marketing strategy where there is a single firm selling a differentiated product or there can be very few firms selling products that are differentiated in the market. Refining your blue ocean strategy with helpful tools. 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 use the blue ocean strategy to revitalize your blog. Embraced by organizations and industries worldwide, blue ocean strategy is a global phenomenon that has sold over 4 million copies. Chan kim is a korean born business theorist and codirector of the insead blue ocean strategy institute. Blue ocean strategy is a book published in 2005 and written by w. What is the blue ocean strategy the term blue ocean was coined by two professors w. The historical origin of military strategy a the birth of military strategy military strategy is a set of ideas implemented by military organizations to pursue desired strategic goals. Chan kim and renee mauborgne in their book titled blue ocean strategy. Integrated advertising, promotion, and marketing communications.