Pdf a pragmatic and holistic approach to strategic. 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. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking away from the competition. The book titled blue ocean strategy is not helpful to management dont buy it and if you already have it dump it. But, contrary to the approach of ocean strategy, should do so by thinking about market environment shifts, how these could impact customer sets, and whether those. Blue ocean strategy tools a diagnostic tool for building a compelling blue ocean strategy it captures the current state of play in the known market space allow you to understand. There is ample opportunity for growth that is both profitable and rapid. Application of blue ocean strategy to chinese 3g mobile. Welcome to blue ocean strategy were thrilled to have you on board. Once a company has developed a blue ocean strategy with a profitable business model, the next challenge is strategy execution. Hello fellow wikipedians, i have just modified one external link on blue ocean strategy. The thesis tries to find whether all services are important to chinese 3g operators competiveness and how to create a. Using blue ocean strategy to reduce new product failure.
Blue ocean strategy is a book published in 2005 and written by w. 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. The most appropriate unit of analysis is the strategic move, the set of managerial actions and decisions involved in making a major marketcreating business offering. The premise of the book is that companies can succeed by creating. A pragmatic and holistic approach to strategic formulation through adopting balanced scorecard, swot analysis and blue ocean strategy a case study of a consumer product manufacturer in china. The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. The purpose of this study was to apply blue ocean strategy to chinese 3g mobile telecom industry. Blue ocean strategy blue ocean strategy is a strategic move that organizations or individuals use to create new product or ideas. Tru group inc blue ocean strategy belongs in the dead sea. Blue ocean strategy workshop at disted hospitality campus this short article examines the many ways blue ocean strategy bos can be used to create a better educational system. This short article examines the many ways blue ocean strategy bos can be used to create a better educational system. Blue ocean strategy and sustainability for strategic management. May 30, 2017 it reduced costs by using plastic instead of metal, for example, and reducing the parts in each watch from 150 to 50. Jul 16, 2015 the blue ocean strategy tools strategy canvas this tool serves as both a diagnostic aid and an action framework for creating blue ocean strategies.
Chan kim harvard business school press, 2005, conceived of a new way for companies to drive profitable growth. Its authors, insead professors w chan kim and renee mauborgne, continued their steady progress up the thinkers50 list, finishing second to christensen this year. 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. The strategy can transform a current product or idea or create something total new. Strategi pengembangan produk product development strategy, yaitu strategi yang berusaha mengembangkan produk baru untuk pasar yang sudah ada dalam rangka memenuhi perubahan kebutuhan dan keinginan konsumen. 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. It is noteworthy that in bos, we do not benchmark competitors and the only way to swim directly from red to blue oceans is via innovation. 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. The risks of following a blue ocean strategy the adaptive. After reading you will understand the basics of this powerful strategy tool what is the blue ocean strategy. However, the price competition only results in a red ocean, where the costs of competition. Blue ocean strategy chapter 14 the four action framework chapter two.
Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. The three characteristics for a blue ocean strategy to be successful were used as follows. Venture strategies have been used by large multinationals for decades. The concept of ideal strategy and its realization using white. Core competences are important for the performance and success of the company goddard, 1997. This international bestselling book sold more than a million copies in its first year of publication, and has. Using bos to create new market space in sustainability. Red ocean in blue oceans, demand is created rather than fought over. Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to.
To join the free indie business book club, click here. This article explains the blue ocean strategy, developed by w. The concept of ideal strategy and its realization using. 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. Value innovation strategy competes in an uncontested market space.
Four hurdles to strategy execution blue ocean strategy. With blue ocean strategy tools and analytics, companies can now pursue and create blue oceans. Blue ocean strategy is a strategy that advice companies to go to a new market, which interest. It requires the right research, patience and focus. Blue ocean strategy case study service nsw 3 1 introduction blue ocean strategy1 has been used extensively to transform the public sector around the world at a local, state and national level. The process sounds very much like how bos is used every day in the business world because not surprisingly, people in practically any industry ask similar questions. This blog article is a overview of some of the key points of the book by w. Various types of strategies are used in strategic management such as red ocean strategy, blue ocean strategy, green ocean strategy, purple ocean strategy and black ocean strategy. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Critique of blue ocean strategy by tru group inc strategy consultants ocean strategy, red or blue, belongs in the dead sea. Blue ocean strategy describes how to build a business strategy that operates outside of the traditional norms. Kondisi red ocean adalah kondisi di mana adanya persaingan sangat ketat untuk mendapatkan pasar yang sama dengan kompetitor. In a red ocean environment the market becomes more fierce and crowded as. Aug 28, 2012 this strategy especially tries to offset this unconscious part in an analytical framework.
This post defines blue ocean strategy and explores a few examples while pointing out the five main risks of pivoting in the search for a rich blue sea without competitors. Chan kim and renee mauborgne, professors at insead. Blue ocean strategy argues that tomorrows leading companies will succeed not by battling competitors, but by creating blue oceans of uncontested market space, where competition is rendered irrelevant of companies that made competition irrelevant in their industries to elicit the strategic logic behind blue ocean strategy. Strategi samudera biru wikipedia bahasa indonesia, ensiklopedia. Chan kim and renee mauborgne, are both prominent professors at insead in fontainebleau, france. Management can and should be visionary in formulating strategy. Our theory is not to be confused with similarlynamed strategies that deal with environmental impact of business. Strategi samudera biru, atau lebih populer dengan istilahnya dalam bahasa inggris, blue ocean strategy, adalah strategi yang menantang perusahaan untuk. In accordance with the long term planning ltp 20142018 on property business development and investment which requires large amount of capital, wika gedung is planning to divest some of its.
Chan kim and renee mauborgne in their bestselling book of the same name. Instead, kim and mauborgne 2005a, b, and c and kim et al. Blue ocean strategy workshop at disted hospitality campus. Blue ocean strategy bos adalah suatu pendekatan strategi untuk. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. 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. In red oceans, there is a competitiveadvantage worldview, companies are often driven to outperform rivals and capture greater shares of existing or shrinking market space. The boeing 787 1 blue ocean strategy the boeing 787.
Just because blue ocean space is almost competitionfree, its. Jul 27, 2015 blue ocean strategy argues that tomorrows leading companies will succeed not by battling competitors, but by creating blue oceans of uncontested market space, where competition is rendered irrelevant of companies that made competition irrelevant in their industries to elicit the strategic logic behind blue ocean strategy. In a merger the companies retain their original names whereas in an acquisition the name of the company being acquired is changed to be the name of the acquiring company. In the book, the red ocean is an ocean filled with sharks businesses, and all the sharks going after the same food supply customers. Blue ocean strategy tools, methodologies and frameworks bring structure to what has historically been an unstructured problem in strategy informing organizations ability to create new market spaces systematically. Red ocean strategy pdf download download the blue ocean strategy summary pdf. Kemudian peneliti mencoba merumuskan strategi baru menggunakan perumusan strategi samudra biru. Blue ocean strategy one of the key tenets of blue ocean strategy is to avoid head to head competition and look for blue ocean through market reconstruction. Blue ocean strategy including examples and pdf download. With the necessary resources, blue oceans can be created and recorded successfully.
We call it value innovation because instead of focusing on beating the competition, you focus on making the competition irrelevant by creating a leap in value for buyers and your company, thereby opening up new and uncontested market space. Companies, like individuals, often have a tough time translating thought into action whether in red or blue oceans. Chan kim and renee mauborgne in the indie business book club. If you have any questions, or need the bot to ignore the links, or the page altogether, please visit this simple faq for additional information. Creators of blue ocean do not use competition as their benchmark but follow a different strategic logic that we call value innovation. D 1,2department of business administration, benson idahosa university, benin city, edo state, nigeria. The structure can be created or recreated by the steps taken by players in the market. The book describes a red versus blue ocean and provides tools and techniques to create blue oceans. Prinsip dari blue ocean strategy adalah menghilangkan kompetisi dengan menciptakan inovasi pada value yang dibawa oleh bisnis, baik. Boeing had just recently lost its title at the worlds largest supplier of commercial aircraft. The bluest ocean strategy for emerging ict business. Blue ocean strategy australia while blue ocean space is a comfortable zone, it might be unhealthy for business leaders in the long run.
The challenge of execution exists, of course, for any strategy. The company, however, is now in the middle of a bloody red ocean, with declining performance. Companies pursue blue ocean strategies to make competition irrelevant. Blue ocean strategy is innovative, and it creates a new market instead of fitting into the current market. Duopoly with boeing and airbus commanding 100 market share in large commercial aircraft.
Chinese 3g mobile telecom industry is a rapidly growing multiple industry which served a lot of services to customers. Study 21 terms strategic management exam 3 practice. These strategies are used in organizations by top level executive managers for long term organizational sustainability and to face or deviate from the competition. Set sail towards your blue ocean jk beteiligung gmbh. 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 time. 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. Blue ocean strategy is a business strategy book, first published on february 3, 2005 by the harvard business school press. Maruti nexa used blue ocean strategy to answer the challenges due to globalization in its nexa outlets. A merger is a pooling of equals whereas an acquisition involves one company, the acquirer, purchasing and absorbing the operations of another company, the acquired c. Theyve progressed every year since to 15th in 2005. So far, blue ocean support relies on a data base of case studies that does not statistically analyze overall patterns. The strategic logic of high growth for small and medium enterprises in nigeria. Value innovation is the cornerstone of blue ocean strategy.
Red oceans represents all the industries in existence read little women online pdf today. The blue ocean strategy bos is the strategic organizational approach that is based on the principle that companies should not engage in a. Rather than competing within the confines of the existing industry or. If we have a purple strategy as you described, then proponents of blue ocean cannot come into play as blue ocean is about an uncontested marketspace and purple means a bit of competition. We believe that blue ocean strategy will send you on the right path towards creating your own uncontested space. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades. Blue ocean strategy has helped numerous companies and organisations across the globe to create new market space and achieve pro. How to create uncontested market space and make the. Samudra biru menandakan industriindustri yang belum ada sekarang.
The body shop, for example, dominated the blue ocean it had created for more than a decade. Blue ocean strategy is often compared to venture strategy. This blog article takes a look at what kind of roi some companies have achieved by implementing a blue ocean strategy by w. Jul 15, 2014 blue ocean strategy, by renee mauborgne and w. The book titled blue ocean strategy is not helpful to management dont buy it and if you. 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. Blue ocean strategy and sustainability for strategic. On a graph, the horizontal axis depicts a range of factors that a company competes on while the vertical axis shows the offering level received by the buyers.
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