Made by group d of the minor global trendwatching 2015. It is about creating and capturing uncontested market space, thereby making the competition irrelevant. What is blue ocean strategy about blue ocean strategy. I wish i could say my own pursuit of enlightenment led me to chan kim and renee mauborgnes masterpiece on embracing and leveraging difference. Chan kim and renee mauborgne, professors at insead. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. Blue ocean strategy is a book published in 2005 and written by w. 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. To use, insert the card at a gas station as you would a credit card. Alternative forms of transportation buyer utility map current state of the industry remember the days as student without a car the concept any. The blue ocean strategy works to create an untapped marketplace outside of the traditional market boundaries.
Zipcar members also have the option to book a bmw, or a small sedan, or a. 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. Feb 03, 2015 buy blue ocean strategy, expanded edition revised ed. Furthermore the blue ocean strategy was awarded with. Estrategia do oceano azul blue ocean strategy em portugues do brasil by w chan kim, ren. A milestone work that overturns the customary pondering system, this top of the line business book diagrams an intense new way of winning whats to come. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking.
The blue ocean strategy is a business book that has become mandatory for modern managers by proposing an organized structure to identify and implement differentiation in any industry and help you grow your business faster. The book the origin of the terms red and blue oceans comes from blue ocean strategy how to create uncontested market space and make the competition irrelevant. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. May 27, 2014 for that there is nothing better than something called the blue ocean strategy. All in all, blue ocean strategy is a book worth reading. Summary of the first four chapters of the international bestseller blue ocean strategy. Creating a blue ocean strategylook for commercial opportunities using a variety of methods including looking at alternative industries, across strategic groups, at different buyers, or switching emotional and functional product qualities.
The first principle of blue ocean strategy is to reconstruct market boundaries to break from the competition and create blue oceans. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. Blue ocean strategy including examples and pdf download. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. Buy blue ocean strategy, expanded edition revised ed. 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. Its authors, insead professors w chan kim and renee mauborgne, continued their steady progress up the thinkers50 list, finishing second to christensen this year. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. Blue ocean strategy makes the competition irrelevant by creating a new market space where there is no competitions.
A global bestseller and one of the best business strategy books available, blue ocean strategy challenges everything you thought you knew about strategic. Zipcar back in 2000, in lieu of overcrowding in the us car rental market, zipcar implemented a blue ocean strategy and established its carsharing business as the dominant alternative to car ownership. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Start writing about zipcar is an example of ownership with this example essay. We are an alternative to traditional car rental and car ownership. 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. In the case of zipcar, a primary competitor is rental car services. Just think of its initial blue ocean shift in book retailing that separated it from the pack with its offering of the largest selection of books in the world. Zipcar is the worlds largest car sharing and car club service. How to create uncontested market space and make the competition irrelevant, a book by professors w.
A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. The expanded edition of blue ocean strategy, is metaphorical, witty, and almost biblical in its commentary of the bloody waters of competitive red ocean market forces. Blue ocean shift is the essential followup to blue ocean strategy, the classic and over 4 million copy global bestseller by worldrenowned professors chan kim and renee mauborgne. 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. The seminal book blue ocean strategy has sold over 4 million copies globally and is in print in 46 languages. 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. Recognized as one of the most iconic and impactful strategy books ever written, blue ocean strategy argues that cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. 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. That is, you are swimming in a blue ocean, largely devoid of the competitors fighting in the commoditized red ocean space. 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. Zipcar places selfserve cars in urban neighborhoods that you can rent for a. 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.
Summary of the blue ocean strategy, with application to flexicar, the australian car sharing company. This is the holy grail that marketers have been seeking since we began thinking about product differentiation, market segmentation, positioning, and all the. Blue ocean strategy at frances insead business school 1468 words 6 pages. Zappos, threadless, or zipcar are also getting ready to redefine what. To create a blue ocean strategy, organizations must be committed to value innovation. Blue ocean strategies a summary blue ocean strategy is a business strategy book first published in 2005 and. The authors use the metaphor of the blue ocean as a direct contrast to red oceans.
Using the four actions described by kim and mauborgne in their book, we can discover and define new rules important attributes of a blue ocean. Planning and managing disruptive business models for rfid. Pros and cons of blue ocean strategy essay example. Want to learn the rest of blue ocean strategy in 21 minutes. Value innovation strategy competes in an uncontested market space. To join the free indie business book club, click here. Chan kim and renee mauborgne of the blue ocean strategy institute and professors at frances insead business school and cofounders of the value innovation. Blue ocean strategy looks outside the existing market boundaries and realize there is a larger set of potential buyers. 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. Apr 03, 2020 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. 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 strategies summary blue ocean strategies a. In this article you will learn how to make your competition irrelevant and have sales and profit. Lexus, powered by a version of lyft or zipcar thats hosted by toyota.
Their book teaches readers how to create uncontested markets for. Using the four actions described by kim and mauborgne in their book, we can. Secondly, users proceed to reserve a specific car model at their preferred. There are many pros and cons of this strategy the main and considerable advantage of this strategy is the first mover benefit in terms of market penetration where the companies see no competition and hence these companies become.
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. May 30, 2017 t his month, we read blue ocean strategy by w. Blue ocean strategy bos is a management concept which prescribes that organizations, rather than going headtohead with competitors, try to create and exploit new market spaces, socalled blue. Drawing on more than a decade of new research, blue ocean shift is the definitive guide to help you move beyond competing, inspire your peoples confidence, and seize new growth. Blue ocean strategy looks outside the existing market boundaries and. For that there is nothing better than something called the blue ocean strategy. In 7, the authors identify blue ocean strategy as a process that. Chan kim and renee mauborgne in their bestselling book of the same name. Sep 26, 2016 the strategy canvas provides a highly visual tool to help look at future options. Sep 10, 20 blue ocean strategy looks outside the existing market boundaries and realize there is a larger set of potential buyers.
You may or may not agree with the central philosophy, but you will be inspired. Essay on blue ocean strategy a marketing book 1053. It is being published in a recordbreaking 44 languages and is a w. This blog article is a overview of some of the key points of the book by w. 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. Compared to car rentals firms that charge users on a per day basis, zipcar offers users the flexibility of deciding the number of hours and distance of car usage. His book blue ocean strategy, coauthored with renee mauborgne, has sold 3. Blue ocean strategy is a bad book, but it is not your usual bad book.
The blue ocean strategy can be extremely rewarding, but can also be the most work intensive. May 26, 2015 summary of the first four chapters of the international bestseller blue ocean strategy. Blue ocean strategy is about creativity and finding new markets that allow a company not to get involved inand bogged down byhyper competition, said w. Everyday low prices and free delivery on eligible orders. That is, you are swimming in a blue ocean, largely devoid of the competitors fighting in the commoditized red. How to create uncontested market space and make the competition irrelevant from the worlds largest community of rea. Innovating user value the interrelations of business model. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Blue ocean strategy can be found on amazon blue ocean strategy. Business model perspective on blue ocean strategy and the creation of new markets. The authors stress that value and innovation must work together simultaneously in order to develop a blue ocean strategy. Chan kim and renee mauborgne, develops and explains how to beat the competition by reaching beyond it into new unexplored markets. Chan, mauborgne, renee, mauborgne, renee a download it once and read it on your kindle device, pc, phones or tablets.
Sep 24, 2017 in 2005, blue ocean strategy, expanded edition. 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. Pdf blue ocean strategy download full pdf book download. The blue ocean strategy explains how to guide your business across seas with less competition and greater profitability.
There are two types of oceans in this world, according to authors w. Draw the strategy canvasmaximise the size of your blue ocean by looking at noncustomers. Cirque du soleil redefined circus creating a blue ocean where their value. Chan kim and renee mauborgne propose a different strategic objective creating an entirely new market space for the company where there are no competitors rather than battling in the existing space. Chan kim and renee mauborgne in the indie business book club. Achieved via the delivery of features that have a highest marginal benefit to customer needs. While the book is aimed primarily at large, traditional businesses, our book club members managed to. He is known as coauthor of the 2005 book blue ocean strategy. The strategy canvas provides a highly visual tool to help look at future options. You can find the free gas card in the visor over the drivers seat of every zipcar.
Unlock the full book summary of blue ocean strategy by signing up for shortform. Blue ocean strategy formulation the four principles of. Based on their research, kim and mauborgne found six approaches to reconstructing market boundaries which, collectively, are known as the six paths framework. Andre williams chaz oswald kassidy tubergen strategic canvas eliminate no more hub. Yes, gas is included in the cost of your zipcar membership. 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 with feuding competitors. The goal is to enable brands to directly rent or lend their products and services to.