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. Chen, information systems theory and practices red ocean vs. This framework addresses not only the analytic aspects behind the creation of blue ocean strategy but also the allimportant human aspects of how to bring an organization and its people on this journey with a willingness to execute these ideas in. For example, nintendo asked people in their three tiers why they didnt play games. The four actions framework is used to help create value innovation and break the valuecost trade. As shown in the diagram above, to break the tradeoff between differentiation and low cost and to create a new value curve, there are four key questions to challenge an industrys strategic logic and. Blue ocean strategy chapter 1 4 the four action framework chapter two. Blue ocean strategy is about creating and executing such strategic moves that unlock uncontested market space which render competitors irrelevant. Chan kim and renee mauborgne heres the strategy create new markets.
Pdf harvard business school press blue ocean strategy rajeh. A good blue ocean strategy has items in each of the four grids. Built on common strategic patterns of blue ocean strategy. To break the tradeoff between differentiation and low cost in creating a new value curve, the framework poses four key questions, shown in the diagram, to challenge an industry. Blue ocean strategy introduces analytical tools to minimize risk. 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. After you define the three tiers of non customers, the idea is that you poll these noncustomers and find out what it would take to purchase your product or service.
The objective of blue ocean strategy is to make competition irrelevant by creating a new value curve for both customers and the company itself. Blue ocean strategy 4 actions framework powerpoint diagram. How to create uncontested market space and make the competition irrelevant by w. The rapid pace of innovation and change in recent years has led scholars and executives to search for an approach to strategy that is more dynamic than harvard professor michael porters classic five forces. One of the most successful efforts to do so is the book blue ocean strategy, by w. Leave the statistics aside and see the big picture 3. What is blue ocean strategy about blue ocean strategy. How to create uncontested market space and make the competition irrelevant, a. Pdf blue ocean strategy as a tool for improving a companys. Figure 4 from blue ocean strategy and new business models in. The four actions framework is used to add new values to the strategic canvas value curve. The strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. Beyond competing proven steps to inspire confidence and seize new growth, a.
How to create uncontested market space and make the competition irrelevant pdf by w. Your productservice must raise and create customer value gain and simultaneously reduce and eliminate features or services that are less valued, or not valued at all, the customer pain. Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. The structure can be created or recreated by the steps taken by players in the market. It is based on the view that market boundaries and industry structure are not a given and can be. Blue ocean strategy2 bos, on the contrary, focuses on creating new demand in places where there is none, thus making the pie bigger instead of fighting over whom gets the largest slice of the pie.
To fundamentally shift the strategy canvas of an industry, you must begin by. Nov 14, 2017 4 actions framework strategically reduce cost reduce. Oct 09, 2017 with renee mauborgne, a colleague at the business school and his coauthor of the recent book blue ocean shift. 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. In this article you will learn how to make your competition irrelevant and have sales and profit. Netflix blue ocean strategy by ameni kabboudi issuu. The elimination reduction improvement creation net 4. This blog article is a overview of some of the key points of the book by w. A third tool, the eliminatereduceraisecreate grid, pushes firms to act on all four questions posed by the four actions framework and to create a new value curve. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. Chan kim and mauborgne have therefore constructed more frameworks that can help with this process like. Blue ocean 4 actions framework canvas new workshop creatlr.
Chen, information systems theory and practices blue ocean strategy. This document is authorized for use only by alexander duchak. 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. When expressed through a value curve, an effective blue ocean strategy has three complementary qualities. The insead blue ocean strategy institute is dedicated to extending the research on blue ocean shift, blue ocean strategy, and blue ocean leadership by chan kim and renee mauborgne and disseminating it to professors, researchers and practitioners around the globe. Assuming that structure and market boundaries exist only in managers minds, practitioners.
However, i have had great success in creating blue ocean strategy style workshops for innovation on a smaller scale. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Jul 17, 2018 implementing the blue ocean strategy is, simply put, a gargantuan task. Netflix customers continue to expand globally and internationally with the convenience of consuming. Blue ocean strategy on jet blue case study by neil k. Public sector application and research, including the application of blue ocean shift, blue ocean strategy, and blue ocean leadership to governments and nonprofits. Blue ocean shift is the definitive guide to shift you, your team, and your organization to new heights of confidence, market creation, and growth. Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. Summary capter 1 4 of blue ocean strategy by lauri di.
The blue ocean strategy tools four actions framework. Competition airbnb has switched the paradigm by creating a less restrictive, more dynamic marketplace. Blue ocean strategy how to create uncontested market space and make the competition irrelevant boston. These frameworks and tools are designed to be visual in order to effectively build the collective wisdom of the company and also to effectively execute a. Blue ocean strategy is referred to a market for a product where there is no competition or very less competition. The fouractions frameworkon blue ocean strategy to reduce, create, raise and eliminate industry practices to create a blue ocean fromthe industry red ocean.
Because blue ocean is an andand, not an eitheror, strategy. Create here, the idea is to create new industry factors that can. Blue ocean strategy and new business models in the food. Value innovation is created in the region where a companys actions favorably affect both.
National blue ocean shift nbos is formulated and executed through the nbos summit, a unique and dynamic national strategy platform which brings together ministries, agencies, all levels of government and the private sector on a voluntary basis. By handling transactions, allowing for instant bookings, and streamlining the reservation process, the website allows for a higher volume of bookings for an ever increasing. May 26, 2015 summary of the first four chapters of the international bestseller blue ocean strategy. Bos four actions framework errc grid innovating now. This study focuses on kim and mauborgne four action framework tool of blue ocean strategy implemented by indian companies in the last. Four actions framework blue ocean strategy shortform blog. Blue ocean strategy is a book published in 2005 and written by w. Professor of mis school of business administration gonzaga university spokane, wa 99258 usa. Figure 5 from blue ocean strategy and new business models in. Four actions framework of blue ocean applied to jet blue. May 26, 2015 blue ocean strategy frameworks and tools include. How to create uncontested market space and make the competition irrelevant, a book by professors w.
Chan kim and renee mauborgne, published by harvard business school press, boston, massachusetts, 2005, isbn 97815996192 blue ocean strategy is a business strategy book, first published on february 3, 2005. By creating this plot, you can find imbalances in your strategy, such as only raising and creating which leads to overengineering and trying to be the best or only eliminating and reducing which leads to mere price competition. The resulting line, before once weve identified the factors for our strategy canvas, we can begin to plot a companys profile across it four actions framework framework that poses four central questions that let companies break the valuecost tradeoff and create a blue ocean. It provides guidelines to identify new competing factors and therefore be more creative during later phases of innovation and design a new buyer value curve. Pdf harvard business school press blue ocean strategy. 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. The blue ocean innovation strategy can take months to complete if its conducted as it was intended to be as a blueprint for a new operating model. Corporate level strategy in hindi grand strategies strategic management sm bbamba ppt duration. 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. Airbnb blue ocean strategy by elisa lafuente on prezi. Achieved via the delivery of features that have a highest marginal benefit to customer needs. 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. Sep 24, 2017 blue ocean strategy requires a different mindset. The 4 actions framework is a core strategic tool used in blue ocean strategy.
The four actions framework and errc grid tweet after you define the three tiers of non customers, the idea is that you poll these noncustomers and find out what it would take to purchase your product or service. Implementing the blue ocean strategy is, simply put, a gargantuan task. Value innovation strategy competes in an uncontested market space. About the blue ocean 4 actions framework template who created blue ocean 4 actions template. Blue ocean strategy can be applied across sectors or businesses. 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. 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 4 actions framework is a strategic tool used to reconstruct customer value elements. The blue ocean strategy four actions framework also called eliminate reduce raise create grid errc grid is a complementary tool to the strategy canvas. Value curve graphic depiction of companys relative performance across its industrys factors of competition.
Blue ocean 4 actions framework canvas new workshop creatlr templates decks. Once a blue ocean is discovered, management must clearly formulate the blue ocean strategy and take the actual actions to implement the new strategy. Blue ocean strategy 4 actions framework to reconstruct buyer value elements in crafting a new value curve, we use the four actions framework. Aim of this dissertation is to investigate whether eataly, the largest wine and food marketplace of the world, entered a blue ocean via business model innovation. In a blue ocean you change the playing field of strategy. Figure 5 the four actions framework blue ocean strategy, 2015 blue ocean strategy and new business models in the food industry. Chan, mauborgne, renee, mauborgne, renee a download it once and read it on your kindle device, pc, phones or tablets. Blue ocean strategy pdf blue ocean strategy blue ocean strategy 2004 five keys to blue ocean strategy blue ocean strategy expanded edition book summary blue ocean strategy blue ocean strategy book by w. 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. Blue ocean strategy formulation the four principles of. Blue ocean strategy how to create uncontested market space. Blue ocean strategy powerpoint templates present better.
Made by group d of the minor global trendwatching 2015. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. Blue ocean strategy value innovation strategy canvas four actions framework errc grid six paths framework pioneer migrator settler map three tiers of noncustomers sequence of creating a blue ocean buyer utility map price corridor of the mass four hurdles to strategy execution tipping point leadership fair process. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. In contrast, red ocean strategy is about how to outcompete in the existing market space. First, it captures the current state of play in the known market space, which helps under. List the factors the customer cares about, and current dimensions of competition. It is about creating and capturing uncontested market space, thereby making the competition irrelevant. Blue ocean strategy, on the other hand, is based on the view that market boundaries and industry structure are not given and can be reconstructed by the actions and beliefs of industry players. The value of having a blue ocean strategy is better understood when compared to a red ocean strategy. Blue ocean strategy including examples and pdf download.
They are professors of strategy at insead, one of the worlds top business schools, and codirectors of the insead blue ocean strategy institute in fontainebleau, france. 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. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. But, lets first understand what is blue ocean and how it is different from red ocean strategy. An introduction to blue ocean strategy mba knowledge base. Chan kim and renee mauborgne is used to reconstruct buyer value elements in crafting a new value curve or strategic profile. Sailing into a blue ocean to understand the power of strategic moves that create blue oceans consider the us wine. This is what the authors call the reconstructionist view. Four actions framework of blue ocean applied to jet blue 1. 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. But many companies have done their homework and succeeded thanks to this strategy. Jul 16, 2015 the blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. The summit, which was launched in 2009, breaks down bureaucratic silos through fair process, and is. May 14, 2011 the blue ocean strategy four actions framework also called eliminate reduce raise create grid errc grid is a complementary tool to the strategy canvas.