In Search of a Logical Conclusion If there is one trend that I think warrants deeper consideration than it has gotten, it … But many companies have done their homework and succeeded thanks to this strategy. Blue Ocean Strategy Competing in overcrowded industries is no way to sustain high performance. Blue Ocean Studio™ All the tools you need to build a powerful strategy in one collaborative, online platform. " We assess the profit and growth consequences of blue oceans and discuss why their creation is a rising imperative for compa-nies in the future. The real opportunity is to create blue oceans of uncontested market space. The Blue Ocean Strategy represents the simultaneous pursuit of high product differentiation and low cost, thereby making competition irrelevant. Instead of dividing up exist-ing—and often shrinking—demand and benchmarking competi-tors, blue ocean strategy is about growing demand and breaking Uber is the disruptive company of the recent decade, they have redefined an industry and changed how we move through the world. Blue Ocean Idea Index The blue ocean idea index is a simple but robust test demonstrating how the sequence of utility, price, cost, and adoption form an integral whole to ensure commercial success through blue ocean strategy. In this 5 minute blog, I’ll tell you what the difference is between a red vs blue ocean, and how certain entrepreneurial skills can help you survive a bloody red ocean. To map current value propositions and then to create innovative new value. ∗Achieved via the delivery of features that have a highest marginal benefit to customer needs . Blue ocean strategy makes competition irrelevant but tries to create and capture a new market. Blue Ocean Strategy vs. Blue Ocean Strategy is a powerful framework for finding new business opportunities. The first hurdle described in the fifth principle is the cognitive hurdle, or the unwillingness of the people of a firm to recognize the need for change. The crux of the strategy is a value-cost trade off. Acquire an in-depth understanding of Blue Ocean Strategy tools and concepts developed at INSEAD. A blue ocean strategy is based on creating demand that is not currently in existence, rather than fighting over it with other companies. This template enables managers and executives to create a detailed and comprehensible blue ocean strategy. Value innovation is the cornerstone of Blue Ocean Strategy. The first example of blue ocean strategy comes from computer games giant, Nintendo, in the form of the Nintendo Wii. Where Red Ocean Strategy is a zero-sum game that is all about splitting up the pie between rivals, Blue Ocean Strategy is about creating the pie and/or enlarging it. Let’s go back now to Nintendo’s case. One, makes you read Blue Ocean Strategy and two makes you appreciate the power of creating blue oceans. Blue Ocean Strategy ends with ten cognitive traps that can deter you from creating blue oceans or that jeopardize your execution. Blue Ocean Strategy breaks down the key techniques to successfully executing tipping point leadership. The Strategy Canvas provides a highly visual tool to help look at future options. It aims to make the competition irrelevant by reconstructing industry boundaries. Slides about blue ocean strategy. Since its first edition, Blue Ocean Strategy has been revised and expanded in 2015 and has become a bestseller with over 4 million copies sold in 46 languages. Rather than competing for a slice of an increasingly shrinking pie – the red ocean strategy – a blue ocean strategy sees a business creating a pie of … This strategy makes the competitors irrelevant and the main driver of the company’s profits are the decreased costs. Extremely impressive platform.It really helped our understanding of the big picture, solved a host of problems and revealed new opportunities." Free Content & Not-So-Free Content. By the end of the course you will be able to: Know Who developed the Blue Ocean Strategy, Understand What is a Business Universe, Differentiate between Blue Ocean and Red Ocean, Describe Ways to Create Blue Oceans, Understand Key Terms Related to Blue Ocean Strategy, Learn the Steps to Create a Blue Ocean Strategy, List the Blue Ocean Strategy Tools, Learn What is Meant by … The approach of blue ocean strategy is as follows: i. Blue Ocean Strategy and Blue Ocean Shift Kim and Mauborgne have been researching what it takes to break out of the red ocean of competition and generate strong profitable growth for over 30 years. Blue ocean strategy doesn’t aim to out-perform the competition. Blue Ocean Strategy is the only strategic planning method recognised in BOTH of Harvard Business Review’s Ten Must Reads on Strategy AND on Change Management. The terms blue and red oceans were introduced by W. Chan Kim and Renée Mauborgne in their book Blue Ocean Strategy. W. Chan Kim and Rene Mauborgne (2005) presented a new strategy named blue ocean strategy. A so large change threatens the status quo, and for that reason it may provoke insecurity and resistance among company’s stakeholders. These will be phrased as myths that are then debunked: Myth: Blue ocean strategy is a customer-led strategy focusing on existing customers. Because, only with a blue ocean strategy and the right entrepreneurial mindset, you can swim into a more profitable and distinct blue uncontested market space. Working back from that vision of a blue ocean strategy, you can identify what must be changed today to unlock a new blue ocean. If you’re here to self-educate, see our case studies, articles and other recommended reading, videos, podcasts, webinars, software and more to inform your journey. You must keep in mind that there is a deeper potential of the marketplace that hasn’t been explored yet. Gain a new framework for strategy design and implementation. They uncovered a systematic process of achieving growth that works whether you are a cash-strapped startup, non-profit, small business, or a large, established company. The Profit Model of Blue Ocean Strategy. Motivate your organisation. blue ocean strategy and describe its defining characteristics. Blue Ocean Strategy is a business marketing strategy of creating a new market space for its services and products. The value curve of blue ocean strategy always stands apart from the competitors. This strategy, which is based on extensive research of hundreds of companies spanning across decades and including several industries, proclaims that instead of battling competitors, companies can create new markets for themselves. Blue Ocean Strategy can be found on Amazon – Blue Ocean Strategy A critical evaluation of Blue Ocean Strategy and its value to SMEs. Audience Definition. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. The blue ocean strategy, on the other hand, involves finding, developing or creating new and uncontested markets. Blue Ocean Strategy is a concept that has been pioneered by INSEAD Professors, W. Chan Kim, and Renee Mauborgne. But it’s not always clear how to create a blue ocean strategy for yourself. 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. 8 The Blue Ocean Strategy, theorized by W. Chan Kim and Renée Mauborgne, is the idea of creating a new demand for your products with a whole new audience based on a different pricing strategy or a product differentiation. Start developing Blue Ocean Strategy for your organisation in order to break away from the competition … ∗Blue Ocean Strategy is a: ∗Value Innovation Strategy – competes in an uncontested market space ∗“Combination Strategy ”: pursue differentiation while controlling costs. Develop an actionable plan. Implementing the blue ocean strategy is, simply put, a gargantuan task. The blue ocean strategy fundamentally challenges leaders to assess the value rather than the technology. We’ll cover 15+ Blue Ocean Strategy examples so you can figure out how to create your own blue ocean.