Specify what successful goals are, and what constitutes failure. Blue Ocean Strategy - Summary and Examples 1. Find which factors they couldnât care less about. At least a few of your assumptions are probably wrong. Furthermore, no downstream step should strongly influence an upstream step. According to the authors themselves, W. Chan Kim & Renee Mauborgne, the blue ocean strategy has 8 core principles: It’s grounded in data The strategy pursues differentiation and low cost It creates uncontested market space Blue Ocean Strategy How to Create Uncontested Market Space and Make the Competition Irrelevant Facilitators : Yip Khai Biau (ymike27@hotmail.com) & Lieu Yoke Sun Group/Presentation Title Agilent Restricted Date ##, 200X 2. Blue Ocean Strategy was first published in 2005 to explain how organizations can successfully make the leap from cut-throat “red oceans” to wide-open “blue oceans”. Blue Ocean Strategy by W. Chan Kim and Renée Mauborgne Book Summary & Commentary 4.5 on Amazon 2004 240 pages "Blue Ocean Strategy argues that firms need to go beyond competing and the mere improvement of product or services in overcrowded industries and pursue value innovation to open up new market space and make the competition irrelevant." Sequence of Blue Ocean Strategy An important part of blue ocean strategy is to “get the strategic sequence right.” This sequence fleshes out and validates blue ocean ideas to ensure their commercial viability. To get a big change, mobilize massive effort. ★DOWNLOAD THIS FREE PDF SUMMARY HERE MY FREE BOOK TO LIVING YOUR DREAM LIFE” SPONSOR BESTBOOKBITS BY USING PATREON SUPPORT BESTBOOKBITS BY CLICKING THE LINKS BELOW 150 PDF Summaries Coaching Program Subscribe to My Channel Website Instagram Spotify Facebook Book Club Mailing List Creating Blue Oceans Rather than compete … Blue Ocean Strategy, Expanded Edition: How to Create Uncontested Market Space and Make the Competition Irrelevant - Kindle edition by Kim, W. Chan, Mauborgne, Renée A.. Download it once and read it on your Kindle device, PC, phones or tablets. It cost $850, half the price of existing cars. QUICK SUMMARY: A blue ocean, as described in Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant, is a market space that is undeveloped, and untapped by competitors.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 blue ocean strategy explains how to guide your business across seas with less competition and greater … Cutting out the fluff: you don't spend your time wondering what the author's point is. Does your business idea really add superior customer value? In the 1990s, telecom in Japan consisted of cell phones (not yet connected to the internet) and the internet accessible through desktop computers. In this summary, we’ll give a synopsis of the key concepts, tools and tips from the book. What would your customer not miss if it were gone? Blue ocean strategies can be depicted on a strategy canvas, which shows how your offering and competing offerings stack up along a range of factors. This phone served as the gateway to the internet for a generation of Japanese users and was the first smartphone to be mass-adopted by a country. In so doing: All blue ocean strategies do something similar. If you canât offer something of buyer utility, thereâs little point in figuring out how much it costs to produce. The “Blue Ocean Strategy, Expanded Edition: How to Create Uncontested Market Space and Make the Competition Irrelevant” is a beautiful book for business owners because it offers strategists to establish sustainable long term dominance. Summary of Blue Ocean Strategy by W. Chan Kim and Renée A. Mauborgne | Includes Analysis Preview: Blue Ocean Strategy, Expanded Edition: How to Create Uncontested Market Space and Make the Competition Irrelevant is the 2015 update to the classic business strategy text of the same name originally published in 2005.The text offers a practical handbook to business … What alternatives do customers have to your product? In 1984, Chrysler unveiled the minivan, a cross between a car and a van. BLUE OCEAN STRATEGY Critique of the book titled, 釘 lue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevantby W. Chan Kim and Renee Mauborgne, published by Harvard Business School Press, Boston, Massachussets, 2005, ISBN 978-59139-619-2. In these red oceans, market structures are known, and companies try to outperform rivals to grab share of existing demand. Donât just focus on competition for market share of the existing industry, a classic red ocean strategy. But the importance of the people proposition is less obvious, particularly for top-down managers, as employees and partners can sabotage the project without buy-in. What is a blue ocean? Based on a study of 150 strategic moves spanning more than a hundred years and thirty industries, Kim and Mauborgne argue that tomorrow’s leading companies will succeed not by battling competitors, but by creating “blue oceans” of uncontested market space ripe for growth. Thus, it didnât represent clear value over a fully-featured used car, which would cost the same but carry more cachet and have more features. Stakeholders often arenât convinced of the gravity of the problem and the need for a strategic change. Cirque du Soleilâs shows featured similar acrobatic wonderment and thrill as circuses. Weâll cover more of what this looks like in a number of examples, as well as frameworks for visualizing this. Blue Ocean Strategy proposes going in this strategic sequence: Altogether, these form the ultimate goal - a profitable business. The third considers cost, which affects profit margin. It cut down on costly expenses that didnât provide customer value â star performers and animal shows. The Problem: Current markets are flooded with competition. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. Blue oceans strategy is the approach that suggests a company is better off searching for ways to play in uncontested market places instead of engaging with competition in existing marketing spaces. Made by Group D of the Minor Global Trendwatching 2015 Assignment 3 Book Summary: Blue Ocean Strategy Submitted to: Mushtaq Ahmed Course Instructor Institute of Business Administration University of Dhaka Submitted by: Kazi Hirok Al-Arafat Roll: 92 Batch: 19th (BBA) Institute of Business Administration, University of Dhaka March 29, 2014 Blue Ocean Strategy: How to Create Uncontested Market Space and Make the … By 1924 the price was down to $290. Myth: Blue ocean strategy requires new technologies. It identifies the important factors of competition in the industry, It shows the strategic profile of current competitors, including your company, It shows how a new blue ocean strategy creates a unique value curve, focusing on values critical to customers at the expense of less-important factors. Limiting car options reduced the number of unique parts needed. In this frame-changing book, Kim and Mauborgne present a proven analytical framework and the tools for successfully creating and capturing blue oceans. A range of options created new demand as buyers went up or down-market relative to the Model T. With frequent updates to cars, they were replaced more frequently, driving up demand. Though I am late to market with my review, it is only now that the book (published in 2005) has seeped into companies to the point where it is influencing strategy, so I might still be in time to save some lives. Here strategy is seen as making a choice between differentiation and low cost.21 In contrast, those that seek to create blue oceans pursue differentiation and low cost simultaneously.” ― W. Chan Kim, Blue Ocean Strategy, Expanded Edition: How to Create Uncontested Market Space and Make the Competition Irrelevant We first introduce a set of analytical tools and frameworks that show you how to sys-tematically act on this challenge, and, second, we elaborate the principles that define and separate blue ocean strategy … The further removed a person is from the strategic planning process, the more scared they will be. Generally, customers donât really care about the technology underlying the product â they care about whether the product solves their problems. Book Summary: Blue Ocean Strategy by W. Chan Kim and Renée Mauborgne The “Blue Ocean Strategy” book debunks the popular notion that in order to win in business, we must beat the competition. The first step to creating blue ocean strategy is to find new ideas and redefine markets as theyâre commonly understood. He graduated from Ross School of Business. Summary Of The Blue Ocean Strategy This strategic planning model is a departure from the typical management exercise that focuses on number crunching and competitive benchmarking. This creates a new product offering that doesnât currently exist, in a space without direct competitors. Yet in today’s overcrowded industries, competing head-on results in nothing but a bloody “red ocean” of rivals fighting over a shrinking profit pool. Blue Ocean Strategy By: W. Chan Kim & Renee Mauborgne Summary by: Jesse Starmer COM 459 2. For instance, shouldnât allow high costs to change your offering and buyer utility, because this will warp your strategy. The Big 3 owned 90% of the US market. Because of widespread access to information and resources today, it becomes too easy for businesses to enter an already established market. When Pret a Manger opened in 1986, professionals in Europe ate at restaurants for lunch. Examining a wide range of strategic moves across a host of industries, Blue Ocean Strategy highlights the six principles that every company can use to successfully formulate and execute blue ocean strategies. It presents a systematic approach to making the competition irrelevant and outlines principles and tools any organization can use to create and capture their … The point of this chapter is that you shouldnât develop and implement the blue ocean strategy in a silo, ignoring people on your team. Although some blue oceans … Bratton forced top brass to ride the subway everyday to see the graffiti, gangs, and aggressive beggars firsthand. Then test these with customers and your organization to figure out which ideas are leaders. How do you perpetuate your organization as your former blue oceans turn red? What other products or services do customers use to achieve the same goal? Its authors, INSEAD professors W Chan Kim and Renee Mauborgne, continued their steady progress up the Thinkers50 list, finishing second to Christensen this year. The performance theater was upgraded with more comfortable seats, avoiding circus hard benches and sawdust floors. Market share increased from 9% in 1908 to 61% in 1921, Now that cars were mass-market, Fordâs cars were getting boring. We use cookies to ensure you get the best experience on our website and continuing implies your consent -. Upending traditional thinking about strategy, this landmark book charts a bold new path to winning the future. Segmentation can create more value through focus, but it often constrains your market size necessarily. It is a roadmap to move you, your team, and your organization to new heights of confidence, market creation and growth. Instead, make people see the reality firsthand. Embraced by organizations and industries worldwide, Blue Ocean Strategy is a global phenomenon that has sold over 4 million copies. Cost â Can you attain your cost target to profit at your price? âBecause itâs a novel technology or approach, it must automatically improve customerâs lives!â. It then raises buyer value by creating new features or services the buyer wants. The massive pre-launch hype also caused overcommitment to manufacturing, rather than a leaner and iterative approach.). In the 1970s, Japanese manufacturers created a blue ocean of small, efficient, high-quality cars. MicroSummary: 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. In the time of Callaway Golfâs rise, the US golf industry generally focused on competing for share of existing golfers. Learn the book's critical concepts in 20 minutes or less. The further removed they are from strategic decision making, the more they need to be communicated to. … Myth: To create blue oceans, you must leave your core business. A blue ocean strategy reduces costs by reducing features or services that are competed over, but are not important to buyers. W. Chan Kim and Renee Mauborgne How to Create Uncontested Market Space and Make Competition Irrelevant This lowered popular impression of the company and dampened demand. All leveraged existing capabilities in new product areas. In travel, businesses tend to either own their own jet (less travel time but expensive and sitting idle much of the time) or book business-class commercial flights (more travel time but cheaper). The book offers several strategies. Donât tunnel vision on competing in your current industry â consider alternatives that customers have for your product. Blue oceans are being continuously created. Bratton invited his general manager for a tour of his squad, picking him up in one of the smaller cars. I strongly believe the reason most businesses fail is because they don’t do the type of preparation that Blue Ocean Shift teaches you how to do. tors, blue ocean strategy is about growing demand and breaking away from the competition. They removed animal acts and their associated care, training, transportation, and housing. The best way to understand value innovation is to consider âvalueâ and âinnovationâ separately. Goal: See customer problems in person for inspiration on new offerings. In other words, a blue ocean is a new, uncontested market space where the existing competition is irrelevant. This comes down to the business model - the nuts and bolts of what you will offer. Blue ocean strategy a book review 1. 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.
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