Whereas competitive strategy stresses the importance of choosing a distinctive position of either differentiation or cost leadership under structural constraint, blue ocean strategy aims at breaking the trade. Pdf blue ocean strategy refers to the creation of a new, unexplored market space that makes competition irrelevant. By entering a blue ocean they were able to pursue low cost and differentiation leadership compared to the. Blue ocean strategy can be applied across sectors or businesses. The result is the leadership canvas, the leadership profile and the blue ocean leadership grid all of which are grounded in acts and activities, easy to understand and communicate and that engage more people in. The same way that blue ocean strategy can create uncontested market space, blue ocean leadership can unleash oceans of untapped. Most leadership efforts focus on cognitive and behavioral skills. Mauborgne nevertheless attack him head on, arguing that the five forces analysis is a formula for remaining in red oceans, where the sharks compete. Blue ocean strategy, the global phenomenon that has sold 3. When expressed through a value curve, an effective blue ocean strategy has three complementary qualities. This happened, for example, when apple created its itunes music download service in 2003. There youll find all the resources you needfrom ideas in practice and cases from government and private industry, to teaching materials, mobile apps, realtime updates, and tips and tools to help you make your blue ocean journey a success. 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.
Chan kim and renee mauborgne enables you to evaluate your current leadership reality and guides you to reach for a step change in leadership strength while. 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. This blog article is a overview of some of the key points of the book by w. From blue ocean strategy to blue ocean leadership july, the concepts of blue ocean leadership differ from traditional leadership models in that blue ocean leadership.
Blue ocean leadership works because the managers customersthat is, the people managers oversee and report toare involved in identifying whats effective and what isnt. Blue ocean leadership unleashes the ocean of untapped talent and employee potential in organizations, the same way that blue ocean strategy creates. Blue ocean leadership is designed to be applied across the three distinct management levels. Insead blue ocean strategy offers a new perspective on strategy formulation and execution. It calls for profiles for leaders that are tailored to the very different. The blue ocean strategy seems to be a perfect solution for present companies to become sustainable successful. Red oceans are described as all the industries in existence today. 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. The on the blue ocean strategy essay 1969 words 8 pages. Essay about blue ocean strategy 825 words bartleby.
Blue ocean strategy is often compared to venture strategy. The blue ocean strategy as a method for developing sustainable profitable frameworks implies the fundamental idea of developing new innovational markets with a majority of new customers. This is a focus on generating additional demand rather than improving or increasing supply through value innovation. Sep 24, 2017 yet the book also shows that the kind of leadership and management needed to implement a blue ocean strategy initiative is very different from the typical big bureaucracy, where strategy is. Drawing on more than a decade of new work, kim and mauborgne show you how to move beyond competing, inspire your peoples confidence, and seize new growth, guiding you. We believe that leaders can obtain this understanding through an approach we call blue ocean leadership.
Yet the book also shows that the kind of leadership and management needed to implement a blue ocean strategy initiative is very different. One is by launching or introducing a completely new product, service, or concept. 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 leadership works equally for large, medium and small organizations. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. Blue ocean strategy is a book published in 2005 and written by w. To learn more about the power of blue ocean strategy, visit blueoceanstrategy. Blue ocean leadership, employee engagement, leadership, vision 2020 and public. Most leadership efforts focus on cognitive and behavioral skills, such as empathy, selfawareness, and selfregulation. The same way that blue ocean strategy can create uncontested market space, blue ocean leadership can unleash the ocean of untapped talent and employee potential in organizations. Learn the concepts of tipping point leadership and fair process that ensure effective execution of blue ocean strategy. The theory of blue ocean leadership the insight for blue ocean leadership, created by chan kim and renee mauborgne, is that leadership, in essence, can be thought of as a service that people in an organization either buy or dont buy.
Blue ocean strategy is a concept that has been pioneered by insead professors, w. The concept of blue ocean strategies is new in the business world as it was first published in 2005 in the bookmanual blue ocean strategy, by w. The theory of blue ocean leadership blue ocean strategy. By low cost here we refer to time, as time is the most expensive and limited resource of leaders. Jul 16, 2015 the blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. 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. Delivered by worldclass faculty, this programme will teach you how to apply the theory created by insead professors w. The insight for blue ocean leadership, created by chan kim and renee mauborgne, is that leadership, in essence, can be thought of as a service that people in. The structure can be created or recreated by the steps taken by players in the market. However, there is a large difference between these two approaches. One of the most successful efforts to do so is the book blue ocean strategy, by w. They are the authors of blue ocean strategy, which has sold over 3. Blue ocean shift is the essential followup to blue ocean strategy, the classic 3. Similarly, blue ocean leadership can unleash oceans of unexplored talent and.
The first part presents key concepts of blue ocean strategy, including value innovation the simultaneous pursuit of differentiation and low cost and key analytical tools and frameworks. Value innovation strategy competes in an uncontested market space. With over 4 million copies sold, it is one of the most popular strategy texts today. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Aug 28, 2012 blue ocean strategy is often compared to venture strategy. Blue ocean strategy is the most successful book on business masterplanning the economist a great read for any leader looking to get a real edge in business and establish a real competitive advantage in the market. Venture strategies have been used by large multinationals for decades. The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present.
Chan kim and renee mauborgne, professors at insead. Impact of blue ocean strategy on organizational performance. You can follow blue ocean strategy and leadership on twitter and facebook and visit the website here. In red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. To put blue ocean leadership in action, we adapt the analytic tools and frameworks of blue ocean strategy to the leadership context. In executing a blue ocean strategy, how can a company overcome various organizational hurdles and build trust and commitment among people who work for or with the company. The theory of blue ocean leadership develops this even further.
Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. 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. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Chan kim and renee mauborgne broke ground by introducing blue ocean strategy, a new model for discovering uncontested markets that are ripe for growth. Blue ocean strategy mi major reference works wiley. 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 and its implications for businesses. Pdf impact of blue ocean strategy on organizational. This course introduces the key concepts, frameworks and tools of blue ocean strategy and lays out the fundamental methodology and process for creating and capturing blue oceans. Jul, 2018 for struggling businesses, mauborgne recommended the strategy canvas, which is featured in her and kims newest book, blue ocean shift. Blue ocean strategy refers to the creation of a new, unexplored market space that makes competition irrelevant. Originally, the blue ocean strategy was created by renee mauborgne and w.
This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. A blue ocean strategy adopts the belief that markets and industries are not structured to beget competition. There are two ways we can create a blue ocean strategy. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Blue ocean strategy including examples and pdf download. With this understanding of the link between blue ocean strategy and blue ocean leadership, we define blue ocean leadership as creating a leap in leadership strength fast and at low cost to release organisations ocean of unrealised talent and energy. The mind map of blue ocean leadership insead knowledge. This collection of work by globally preeminent management thinkers w. Blue ocean leadership in small organizations blue ocean strategy. The insight for blue ocean leadership, created by chan kim and renee mauborgne, is that leadership, in essence, can be thought of as a service that people in an organization either buy or dont buy kim and mauborgne observe that every leader has customers. Blue ocean leadership works because the managers customersthat is, the people managers oversee and report to are involved in identifying whats effective and what isnt.
A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. From blue ocean strategy to blue ocean leadership insead. 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, 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. Pdf blue ocean leadership manaswini biswal academia. Moreover, the approach doesnt require leaders to alter who they are, just to undertake a different set of tasks. Aug 08, 2019 the first part presents key concepts of blue ocean strategy, including value innovation the simultaneous pursuit of differentiation and low cost and key analytical tools and frameworks. Chan kim and renee mauborgne brings together their perennial bestseller book blue ocean strategy with their classic articles blue ocean leadership and red ocean traps. Visualising blue ocean leadership in comparison to conventional leadership practices. Blue ocean strategy is referred to a market for a product where there is no competition or very less competition. Reviewing the blue ocean strategy universiteit twente.
335 1381 217 505 20 188 1361 880 146 820 1096 1423 1422 188 1138 675 630 947 1204 1111 309 902 1425 421 380 201 819 883 1443 1015 1043 415 254 1224 26 1175 348 811 590 1399 827 1311 842 653 1021 168