5 elements of blue ocean strategy pdf

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. Several factors decides corporate strategy to emerge. Blue ocean strategy including examples and pdf download. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. 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.

In this article you will learn how to make your competition irrelevant and have sales and profit. The premise of the book is that companies can succeed by creating. Rather than competing within the confines of the existing industry or trying to steal customers from rivals bloody or red ocean strategy w. Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group. Blue ocean strategy doesnt aim to outperform the competition. Providing clear and familiar concepts and cases is both the books strong point, as well as its weak point. List the factors the customer cares about, and current dimensions of competition. 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. Pdf blue ocean strategy for creating value of the organization. It is an andand, not an eitheror strategy 2 it maximizes opportunity while. The buffer blog has exposed a blue ocean strategy by harnessing acumen for research and compiling data. Very few businesses reach the transparency level that buffer openly embraces.

Provides stepbystep process provides a stepped process for implementation gives management an alternative to traditional strategies 6. Travel research online,united states travel research online, a blog for the travel agent community, runs a series of 10 posts dedicated to blue ocean strategy theory and its practical application for travel agents. Strategy toolbox powerpoint template envato elements. The concept of ideal strategy and its realization using white ocean. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. It reduced costs by using plastic instead of metal, for example, and reducing the parts in each watch from 150 to 50. Blue ocean strategy is a theory explained in a 2005 book by w. Now, 12 years later, the authors offer an exciting new book that synthesizes their experience in assisting with the implementation of blue ocean. The structure can be created or recreated by the steps taken by players in the market. Blue ocean strategy, strategic planning, chocolate industry, case study, industry, jordan. T analysis tows matrix buildmeasurelearn feedback loop critical success factors porters diamond kaizen strategy model innovation circle kellers brand equity model the mckinsey 7s framework the ansoff matrix the gemckinsey matrix the value disciplines model blue ocean strategy mintzbergs 5s strategy. They are the authors of the international bestselling book blue ocean strategy which is recognized as one of the most iconic and impactful strategy books ever written, and the recently released.

Some strategic planning models are based on theories that dont quite pan out during gotomarket executions. In this way, it swam into a blue ocean, offering a plastic watch at a price that allowed people to purchase two or three watches at one. Blue ocean strategy makes companies to come out of ocean of bloody competition by creating market space which is uncontested and that makes the completion irrelevant. Top 5 strategy development tools free ebook in pdf format. By examining the success elements of 150 companies in over 30 industries, founders of the blue ocean concept realized patterns of strategic thinking in the creation of new market spaces which was the basis for the blue ocean strategy. The green ocean innovation model looks beyond the limitations of blue and green ocean strategies.

Pdf blue ocean strategy as a tool for improving a companys. It is a good read for beginners, but more sophisticated readers will probably find it useless since there is nothing particularly new in it. Study 31 terms blue ocean strategy flashcards quizlet. What is blue ocean strategy about blue ocean strategy. Maximizes opportunityminimizes risk mitigates risk increases odds of success 7. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking.

The elements of a great blue ocean strategy for travel agents. The blue ocean strategy is based on the concept that industry structure and market. Using bos to create new market space in sustainability. T analysis buildmeasurelearn feedback loop critical success factors porters diamond t. 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. Extreme openness is another blue ocean technique that buffer uses on their open blog. How to create uncontested market space and make the competition irrelevant by w. Blue ocean strategy is a book published in 2005 and written by w. 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. This case comes with a twopart video interview with ceo peter cuneo who launched a blue ocean. The fundamental premise is that most companies fight competitors headtohead in the same space, chasing the same customers with very similar products, creating a bloodyred ocean in their feeding frenzy. The logic behind blue ocean strategy parts with tradi tional models focused. 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. The blue ocean strategy is presumably based on the use of value innovations.

These include corporate strategy, business strategy, and functional strategy in section 1. Blue ocean strategy can be applied across sectors or businesses. The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. The three key components of a successful blue ocean shift.

Blue ocean strategy is referred to a market for a product where there is no competition or very less competition. Chapter 5 shows how to maximize the size of a blue ocean. Strategy is a plan, a how, a means of getting from here to there. The on the blue ocean strategy essay 1969 words 8 pages. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. In contrast, blue ocean strategy originated from a study that took place over 10 years and analyzed company successes and failures in more than 30 industries. Blue ocean strategy formulation the four principles of. Restoring a blue ocean explains one of the greatest turnarounds in modern business history. Motivation desire for challenge six principals of blue ocean strategy. Value innovation is a new way of thinking about and executing strategy that results in the creation of a blue ocean. The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. It combines the best elements of both to gain statistical significant results which aid innovation efforts in their best manner. Eight key points of blue ocean strategy heres the essence of blue ocean strategy captured in eight key points.

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. Public sector application and research, including the application of blue ocean shift, blue ocean strategy, and blue ocean leadership to governments and nonprofits. Business strategy powerpoint template envato elements. Blue ocean strategy is a strategy that advice companies to go to a new market, which interest customers and avoid competition from the existing market. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. Blue ocean strategy case study service nsw 5 at the end of 2012 there were an estimated 380 nsw government shopfronts, 100 call centres, 8,000 phone numbers and 900 web sites that customers needed to select from and navigate through if they needed to transact with the nsw government. Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. Michel porter supports to compete in existing market space, beat the competition, exploit existing demand, make the valuecost tradeoff, align the whole. Companies should instead look for new market space and ways to reinvent the industry. Renee mauborgne, coauthor of blue ocean strategy and the new book blue ocean shift, on why disrupting an industry doesnt need to be an entrepreneurs goal. How to create uncontested market space and make the. Pdf on apr 1, 2012, ibrahim rawabdeh and others published blue ocean strategy as a tool for.

Now, 12 years later, the authors offer an exciting new book that synthesizes their experience in assisting with the implementation of blue ocean strategy. Our blue ocean strategy summary outlines only the most key elements. The creation of blue oceans is about driving costs down while simultaneously driving value up for buyers. S matrix kaizen strategy the innovation circle kellers brand equity model the mckinsey 7s framework the ansoff matrix the gemckinsey matrix the value disciplines model blue ocean strategy mintzbergs 5s strategy. Blue ocean strategy with products and marketing group 5. What is distinctive about blue ocean strategy as a theory. Value innovation value innovation places equal emphasis on value and innovation. The authors use the term blue ocean strategy to refer to the new management approach they are selling in their book. Blue ocean strategy introduces analytical tools to minimize risk. Pdf for creating new demands and open up a new market space the pursuit of differentiation. This was a blue ocean opportunity staring them in the face. Those who want to create a blue ocean strategy for their company must focus on value innovation that makes the competition irrelevant by the simultaneous pursuit of differentiation and low cost, thus creating a leap in value for the customers and an uncontested market space for the company.

The four actions framework reconstructs buyer value elements by posing four key questions that challenge an industrys strategic logic and. This blog article is a overview of some of the key points of the book by w. Blue ocean strategy and sustainability for strategic. 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.

Blue ocean strategy provides a clear fourstep process to create your tobe blue ocean strategy 5 it pursues differentiation and low cost blue ocean strategy is based on the simultaneous pursuit of di. Engagement trust bulit relationship togetherness and enthusiasm. Competitive forces different business units face different structural conditions with different resources, capabilities and different strategic mind. Since, dividing up existing demand and benchmarking the competitors, blue ocean strategy is.