Chan kim and renee mauborgne 2006 blue ocean strategy has been described as a must read for all business students. The second of the two implementation principles involves designing execution levers into the strategy itself. 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 economist a great read for any leader looking to get a real edge in business and establish a real competitive advantage in the market. The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. How to create uncontested market space and make the competition irrelevant, a. Earn cash for the school or get double the profit with scholastic dollars. 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. Chan kim and renee mauborgnes articles on blue ocean strategy, all in one place. In this book summary of blue ocean strategy, well outline the key. 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 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. Blue ocean strategy is a book published in 2005 and written by w. Fair process may sound like a soft issue, but understanding its value is crucial for managers trying to adapt their companies to the demands of the knowledge.
The seminal book blue ocean strategy has sold over 4 million copies. In this framechanging book, kim and mauborgne present a proven analytical framework and the tools for successfully creating and capturing blue oceans. To minimize the risk of distrust, noncooperation and even sabotage, the book recommends a fair process in making and executing strategy, which involves engagement, explanation and expectation clarity. Blue ocean strategy introduces analytical tools to minimize risk. 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. The seminal book blue ocean strategy has sold over 3. How to create uncontested market space and the make competition irrelevant 2005. This book brings the best of those articles together all in one place. 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 drive the process. Chan kim and renee mauborgne, professors at insead. Using the five scenarios participants work in teams as they learn to apply key concepts of tipping point leadership and fair process. Blue ocean strategy how to create uncontested market. Although blue oceans enable a firm to gain uncontested market space, it is only for a time that this is so. Value innovation strategy competes in an uncontested market space.
The best books and stories brought to life with unforgettable characters. In the prior book the tools were described, but this book follow up with instructions on sequencing and use. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. Nike will present a clear balanced scorecard at the very centre of the business, presenting all employees with the potential prosperity that the blue ocean strategy provides. In every case, the decisive factor is what the authors call fair processfairness in the way that a company makes and executes decisions. To join the free indie business book club, click here. This principle aims to help reduce management risk by incorporating a system of fair process into the development of the strategy, managerial and employee attitudes and behaviors, and consequently the execution of the strategy.
The fourstep process is designed around the concepts and analytic tools of blue ocean strategy and fair process. Nike will activley pursue a transparent and holistic policy of fair process fish bowl management external barriers. Pdf blue ocean strategy download full pdf book download. It is based on the three e principles of engagement, explanation and expectation clarity. The belief that blue ocean strategy is a theory of marketing and a niche strategy. Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group. 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 the result of a decadelong study of 150 strategic moves spanning more than 30 industries over 100 years 18802000. The belief that blue ocean strategy sees competition as bad when in fact it can be good for. Tipping point leadership and fair process in action the case centre, for educators. Throughout the book they use the metaphor of red and blue oceans red oceans represent markets where competition is intense and bloody, while blue oceans are potential markets not yet served by. Achieved via the delivery of features that have a highest marginal benefit to customer needs.
He is known as coauthor of the 2005 book blue ocean strategy. Blue ocean shift is the essential follow up to blue ocean strategy, the classic. The premise of the book is that companies can succeed by creating. Featured case series blue ocean strategy the case centre, for. Chan kim and renee mauborgne a simplified book summary of how to execute a blue ocean strategy. Chan kim and renee mauborgne in their book blue ocean strategy. 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. List the factors the customer cares about, and current dimensions of competition. 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 shift is the essential follow up to blue ocean strategy, the. Based on an eponymously titled book, this strategy argues that cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. The first part presents key concepts of blue ocean strategy, including value innovation the simultaneous. In short, the whole book could be summed up in the very first chapter where value innovation is explained because value innovation is not the cornerstone of blue ocean strategy it is blue ocean strategy. The seminal book blue ocean strategy has sold over 4 million copies globally and is in print in 46 languages.
Motivating people requires more than overcoming organizational hurdles and winning peoples trust with fair process. Chan kim and renee mauborgnes work on creating new market spaces was originally published in the pages of harvard. Blue ocean strategy is the most successful book on business masterplanning in recent years. Chan kim and renee mauborgne in the indie business book club. Without fair process it will be hard to implement a strategy. As the book s story unfolds, it becomes increasingly clear that blue ocean strategy is about a lot more than just formulating a strategy or implementing a single initiative. When fair process is exercised in the strategy formulation phase, people trust that a level playing field exists, inspiring voluntary cooperation during the execution phase. It is being published in a recordbreaking 46 languages and is a bestseller across five continents. The blue ocean strategy implementation selfdiagnostic is comprised of a series of probing questions that offer executive participants a practical tool for assessing the level of organizational blue ocean strategy implementation selfdiagnostic. Blue ocean strategy formulation the four principles of. As outlined in our book, tipping point leadership allows you to. The authors of blue ocean strategy reveal how they sold. Blue ocean strategy is a bad book, but it is not your usual bad book.
A lot has been written about it and i would have said practically everything had been said about it until i looked up the book on amazon to see the current price. Fair process may sound like a soft issue, but understanding its value is crucial for managers trying to adapt their companies to the demands of the knowledgebased economy. The first part presents key concepts of blue ocean strategy, including value. Blue ocean strategy from business strategy gurus a to z. They are the authors of blue ocean strategy, which has sold over 3. Cirque du soleil has created a blue ocean and has invented a new form of live entertainment, one that is. Compared with red ocean strategy, blue ocean strategy represents a significant departure from the status quo. This volume includes the articles value innovation. How to create uncontested market space and make competition irrelevant, is a market space that is undeveloped, and untapped by competitors. Eight key points of blue ocean strategy insead knowledge. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. This blog article is the third in a series of five blog articles on the book blue ocean strategy by w. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Fair process is a key pillar of blue ocean strategy that is central to building execution into strategy.
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. Blue ocean leadership is designed to be applied across the three distinct management levels. A structured process of visual awakening, exploration, strategy fair and communication pushes a companys strategy towards blue ocean. This article is about the combination of the blue ocean strategy together with a project management methodology with the objective to help small and medium companies to surpass the actual financial turmoil and tough competitiviness in the red ocean in order to find their own blue ocean. The sequel to blue ocean strategy, blue ocean shift outlines a methodology to identify blue ocean opportunities. It is built based on our strategy practices in the field with. It calls for profiles for leaders that are tailored to the very different. The blue ocean strategy implementation scenario case offers a set of interactive group scenarios which are designed to deepen the participants understanding of blue ocean strategy implementation principles. It is based on the three e principles of engagement. Whether people are senior executives or shop employees, they all look to these elements. Based on 15 years of research, the authors used 150 successful strategic moves spanning 120 years of business history and across 30 industries to bring the blue.
A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. An introduction to blue ocean strategy mba knowledge base. Organizations must make fair process the modus operandi. They apply a decisionmaking strategy that jerry describes as by consensus. The book suggests that any implementation should engage employees in strategic decisions that affect. Engage people in decisions that directly affect them, explain why decisions are made the way they are, and clarify what will be expected of them after the changes. It is, quite possibly, one of the best selling business books ever published. How to create uncontested market space and make the competition irrelevant by w. Lecture on tipping point leadership and fair process in action. The belief that blue ocean strategy is the same as innovation. Companies should instead look for new market space and ways to reinvent the industry. 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. Embraced by organizations and industries worldwide, blue ocean strategy is a global phenomenon that has sold over 4 million copies.
The misconception that blue ocean strategy is a lowcost strategy that focuses on low pricing. To draw a blue ocean strategy, focus on the big picture and reach beyond existing demand, a good strategy has three qualities. Tipping point leadership and fair process in action. 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. Blue ocean strategy blue ocean strategy is a business strategy book published in 2005 by harvard business school publishing corporation in united state of america, it was written by w. A secure, cashfree way to shop the fair with yearround shopping online. Managing in the knowledge economy, creating new maket space, knowing a winning business idea when you see one, charting your companys future, tipping point leadership, blue ocean strategy, how.
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