First and foremost on their list is a tool used to break out of competition and make competition irrelevant called the strategy canvas. 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. It allows users to clearly see the factors that the industry competes on and the factors that are being ignored. By reorienting a company towards the factors being ignored, it can capture uncontested market space. 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. Social sector application and research, including such topics as how blue ocean strategy can be applied in the developing world to mitigate poverty and improve education and health. 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. Made by group d of the minor global trendwatching 2015.
Blue ocean strategy canvas excel template ignition framework. The frameworks offered in blue ocean strategy, on the other hand such as the strategy canvas and the four actions framework are specifically aimed at helping companies to come up with new. Analysis plandata usedkey assumptions analysis plan. Without analytic frameworks to create blue oceans and principles to. It provides guidelines to identify new competing factors and therefore be more creative during later phases of innovation and design a new buyer value curve. Conventional wisdom asserts that the greater the change, the greater the resources and time you will need to. Strategy and thinking is not limited by preconceived barriers, and a shift happens from a focus on the supply side to a focus on the demand. History of industry 200220032 very successful ipod sales no desire from apple to create a pda steve jobs believes that cell phones will eventually carry the pda information americans carried cell. Four actions framework of blue ocean applied to jet blue 1. The authors of the bestselling blue ocean strategy have spent over a decade exploring that question. The blue ocean strategy four actions framework also called eliminate reduce raise create grid errc grid is a complementary tool to the strategy canvas.
Help you attract groups of customers that you wouldnt attract using traditional strategies in your industry. The four actions framework is used to help create value innovation and break the valuecost trade. What is the blue ocean strategy the term blue ocean was coined by two professors w. The perception about tata nano changed from the peoples car to the cheapest car.
Chan kim and renee mauborgne was first published in 2005. 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. Using bos to create new market space in sustainability. Learn how to eliminate, raise, reduce, and create new factors of competition. Business strategy frameworks provide the following benefits. Inde 599 19 overview industry prelaunch 5 forces analysis 4 actions framework strategy canvas 6 paths risk assessment post launch success. While this came in appendix a in the book, this is a good time to cover three industries with repeated blue ocean creation. The four actions framework aids in eliminating the tradeoff between. Summary capter 1 4 of blue ocean strategy by lauri di. Four actions framework template blue ocean framework miro.
Blue ocean strategy including examples and pdf download. His book blue ocean strategy, coauthored with renee mauborgne, has sold 3. Chan kim and renee mauborgne in their book titled blue ocean strategy. Blue ocean strategy and sustainability for strategic. Chan kim and renee mauborgne heres the strategy create new markets. According to the wine economist, it is because it is not just wine, but a new type of product within the wine industry.
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. This blog article is a overview of some of the key points of the book by w. The blue ocean strategy recommends that a successful business should be able to develop a new demand in an uncontested markets rather than compete directly with. Shortform has the worlds best summaries of books you. This framework addresses not only the analytic aspects behind the creation of blue ocean strategy but also the allimportant human aspects of how to bring an organization and its people on this journey with a willingness to execute these ideas in. Core competences are important for the performance and success of the company goddard, 1997. The premise of the book is that companies can succeed by creating. When you apply the four actions framework to the strategy canvas of your industry, you.
Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Eight key points of blue ocean strategy heres the essence of blue ocean strategy captured in eight key points. This tool is the central diagnostic and action framework for building a compelling blue ocean strategy. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Jul 16, 2015 in this article, we will look at 1 what is a blue ocean strategy. Blue ocean strategy as a tool for improving a companys marketing function. Tata nano car strategic management free 30day trial. 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. Blue ocean strategy chapter 14 the four action framework chapter two. Help you structure your organization so that you can serve your customers needs faster and more efficiently. Bos four actions framework errc grid innovating now. Sep 03, 2019 the frameworks offered in blue ocean strategy, on the other hand such as the strategy canvas and the four actions framework are specifically aimed at helping companies to come up with new. Tata nano was sold as another car in conventional dealerships.
Pdf blue ocean strategy as a tool for improving a companys. In this summary, well give a synopsis of the key concepts, tools and tips from the book. The fouractions frameworkon blue ocean strategy to reduce, create, raise and eliminate industry practices to create a blue ocean fromthe industry red ocean. In a blue ocean you change the playing field of strategy.
The following are 21 business strategy frameworks that are. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. Blue ocean strategy is a book published in 2005 and written by w. Misalignment of strategy propositions and consequences value proposition utility price. Based on a study of 150 strategic moves spanning more than 100 years and 30 industries, blue ocean strategy addresses this question and provides a systematic approach to drafting and implementing your own blue ocean strategy. Chan, mauborgne, renee, mauborgne, renee a download it once and read it on your kindle device, pc, phones or tablets. Four actions framework blue ocean strategy posted by allen cheng mar 16, 2020 this article is an excerpt from the shortform summary of blue ocean strategy by w. Chan kim and renee mauborgne in the indie business book club. Then the blue ocean practical introduction course is right for you. Blue ocean strategy formulation the four principles of. Blue ocean strategy is a bad book, but it is not your usual bad book. Create your own market winning business strategy for free. Four actions framework of blue ocean applied to jet blue.
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. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of strategy and international management at insead. Blue ocean strategy chapter 1 4 the four action framework chapter two. The blue ocean strategy recommends that a successful business should be able to develop a new demand in an uncontested markets rather than compete directly with other competitors in the industry. Public sector application and research, including the application of blue ocean shift, blue ocean strategy, and blue ocean leadership to governments and nonprofits. Blue ocean strategy is a landmark idea founded by w. How to create uncontested market space and the make. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of. They assert that these strategic moves create a leap in value for the company. A fouraction framework for blueocean innovation the. This tool is the central diagnostic and action framework for building a. Drawing on more than a decade of new work, kim and mauborgne show you how. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w.
A good blue ocean strategy has items in each of the four grids. Blue ocean strategy how to create uncontested market space. Professor of mis school of business administration gonzaga university spokane, wa 99258 usa. It was built on the notion of creating new markets where competition is irrelevant and the opportunity to grow and be profitable is unlimited. Value innovation is created in the region where a companys actions favorably affect both. 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.
The concept of blue ocean is based on the idea that the business universe is made up. The company was able to identify and answer the needs of a specific and new market in the us by applying the four actions framework of the blue ocean strategy, as used to help create value innovation. They have seen that the trouble lies in managers mental modelsingrained assumptions and. Together, they wrote a bestselling book blue ocean strategy. Inde 599 19 overview industry prelaunch 5 forces analysis 4 actions framework strategy canvas 6 paths risk assessment post launch success history of industry 200220032. To break the tradeoff between differentiation and low cost in creating a new value curve, the framework poses four key questions, shown in the diagram, to challenge an industry. The strategy canvas captures the current strategic landscape and future prospects for a company. Blue ocean strategy and sustainability for strategic management. 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. Chen, information systems theory and practices blue ocean strategy.
Achieved via the delivery of features that have a highest marginal benefit to customer needs. Blue ocean strategy 4 actions framework powerpoint diagram. It hinges on a shift from convergence to divergence in value curves at lower costs. The structure can be created or recreated by the steps taken by players in the market. 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 blue oceans and to do so in a way that people own and. Chan kim and renee mauborgne in their bestselling book of the same name. Summary of the first four chapters of the international bestseller blue ocean strategy. Blue ocean shift is the definitive guide to shift you, your team, and your organization to new heights of confidence, market creation, and growth. The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. The strategy canvas is both a diagnostic and an action framework for building a. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. Use our free blue ocean 4 actions framework template to create, collaborate on with your. In this article, we will look at 1 what is a 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. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. In their 2017 new york times bestselling book, blue ocean shift, kim and. Build your blue ocean strategy with the four actions framework. The second is the four actions framework, which provides insight into potential blue oceans. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition.
Blue ocean strategy how to create uncontested market. Four actions framework blue ocean strategy shortform blog. How to create uncontested market space and make the competition irrelevant pdf by w. Mar 15, 2014 four actions framework of blue ocean applied to jet blue 1. 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 costs.
Oct 09, 2017 a fouraction framework for blueocean innovation. How is blue ocean strategy different from a classic differentiation strategy. May 26, 2015 summary of the first four chapters of the international bestseller blue ocean strategy. Summary capter 1 4 of blue ocean strategy by lauri di vino. It is being published in a recordbreaking 44 languages and is a w. May 14, 2011 the blue ocean strategy four actions framework also called eliminate reduce raise create grid errc grid is a complementary tool to the strategy canvas. Chen, information systems theory and practices red ocean vs. This tool serves as both a diagnostic aid and an action framework for creating blue ocean strategies. 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. The six paths framework in formulating blue ocean strategy. Value innovation strategy competes in an uncontested market space. Pdf harvard business school press blue ocean strategy rajeh. 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. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future.
What is distinctive about blue ocean strategy as a theory. To join the free indie business book club, click here. Download unlimited powerpoint templates, charts and graphics for your presentations with our annual plan. May 30, 2017 t his month, we read blue ocean strategy by w.
Blue ocean strategy how to create uncontested market space and make the competition irrelevant boston. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Miro has multiple exporting options, like saving to pdf. Blue ocean strategy ist eine methode zur entwicklung dauerhaft profitabler geschaftsmodelle aus dem bereich des strategischen managements. Compared with red ocean strategy, blue ocean strategy represents a significant departure from the status quo. Pdf harvard business school press blue ocean strategy. 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. 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. 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.
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. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. Strategy canvas four actions framework errc grid six paths framework pioneer. Chan kim and renee mauborgne, professors at insead.