Summary of the first four chapters of the international bestseller blue ocean strategy. Blue ocean strategy is a business marketing strategy of creating a new market space for its services and products. Jun 03, 2018 a mini video introduction to the widely popular blue ocean strategy by w. 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. Project scope project scope objectives 1 of 3 step 1 1. The risks of following a blue ocean strategy the adaptive. Chan kim and renee mauborgne, professors at insead. The authors also recommend creating a strategy canvas to show where you stand with respect to the competition. Simple strategy canvas template for powerpoint is a professional presentation with simple xy axis representations for the blue ocean strategy canvas.
Blue ocean strategy formulation the strategy canvas. This strategy makes the competitors irrelevant and the main driver of the companys profits are the decreased costs. Blue ocean strategy powerpoint templates present better. Jun 19, 2014 a strategy canvas can be built in quickscore our balanced scorecard software tool.
To assist you, the qi macros contains a blue ocean template for excel. Of course, the blue ocean approach to this model would call. 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. 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 mauborgnes strategy canvas is a central diagnostic tool and an action framework that graphically captures, in one simple picture, the. Reviewing the blue ocean strategy university of twente student. Strategy canvas excel template blue ocean strategy subject. Why the business model canvas complements blues ocean strategy author.
How to draw a strategy canvas in 4 steps strategiccoffee. A strategy canvas is the most fundamental tool used in the blue ocean strategy framework. But many companies have done their homework and succeeded thanks to this strategy. Eight key points of blue ocean strategy heres the essence of blue ocean strategy captured in eight key points. The blue ocean strategy book has been sold over 3,5 million times, was published in 43 languages and is a bestseller across five continents. The strategy canvas is similar to the competitive analysis you might find in a qfd house of. It graphically captures, in one simple picture, the current strategic landscape and the future prospects for an organization. The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. Companies pursue blue ocean strategies to make competition irrelevant. The strategy canvas is a central diagnostic tool and an action framework of blue ocean. Typically its that your company has stalled or failed to sustain profitable growth, and now you find yourself stuck in a very red ocean of bloody competition. 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. Furthermore the blue ocean strategy was awarded with. Made by group d of the minor global trendwatching 2015.
Blue ocean strategy including examples and pdf download. However, the blue ocean strategy is still little known and rarely used for. 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. Blue ocean strategy formulation the strategy canvas profitworks. This sounds easier than it is to break out of your old mindsets. Blue ocean shift outlines the process of how to draw your asis strategy canvas and interpret the results blue ocean shift presents sample completed strategy canvases for your reference to aid you in completing this step and all the other steps in blue ocean shift we strongly. Help you structure your organization so that you can serve your customers needs faster and more efficiently. The following are 21 business strategy frameworks that are. Blue ocean studio you can access a free trial here.
Blue ocean strategy is a new way of thinking, a new strategic mindset, a bold new path to winning the future. Extracting the key insights from the six paths market exploration. It requires the right research, patience and focus. Chan kim and renee mauborgne published the blue ocean strategy which with over one million copies sold has become a mustread book for. Pdf harvard business school press blue ocean strategy rajeh.
Jul 17, 2018 implementing the blue ocean strategy is, simply put, a gargantuan task. The analyst can define a set of competitive factors in the x axis and compare the value. Achieved via the delivery of features that have a highest marginal benefit to customer needs. This template enables managers and executives to create a detailed and comprehensible blue ocean strategy. Click here to download the blue ocean strategy summary pdf. It is a roadmap to move you, your team, and your organization to new heights of confidence, market creation and growth. Initial objective brand analysis, new brand, rebranding, advertising. Blue ocean strategy introduces analytical tools to minimize risk.
This blog article is part of a series on the book blue ocean strategy by w. How is blue ocean strategy different from a classic differentiation strategy. Strategy canvas excel template blue ocean strategy. The value of having a blue ocean strategy is better understood when compared to a red ocean strategy. To fundamentally shift the strategy canvas of an industry, you must begin by reorienting your strategic focus from competitors to alternatives, and from customers to.
Looking at entire industries in this way allows you to tell over time whether an innovation strategy or a competitive strategy is best. Blue ocean strategy and new business models in the food. Blue ocean strategy is a powerful framework for finding new business opportunities. But its not always clear how to create a blue ocean strategy for yourself.
A strategy canvas is basically a line graph that plots functionsfactors against importance for a company or an organisation and then overlays competitors or industry benchmarks. Business strategy frameworks provide the following benefits. This tools is a central diagnostic and action framework for comparing different value propositions. A blue ocean strategy adopts the belief that markets and industries are not structured to beget competition. This approach consistently produces strategies that are easy to understand and. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. Chan kim, of blue ocean strategy, expanded edition. 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 and renee mauborgne, taught in marketing classrooms all over the world.
Strategic canvas what is the problem you are trying to solve. This is a focus on generating additional demand rather than improving or increasing supply through value innovation. 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. Help you attract groups of customers that you wouldnt attract using traditional strategies in your industry. The strategy canvas from blue ocean strategy visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. Strategy canvas from blue ocean strategy shortform blog. Value innovation strategy competes in an uncontested market space. To address these questions, we turn to the strategy canvas, an analytic framework. This blog article is a overview of some of the key points of the book by w. How to create uncontested market space and make the competition irrelevant, w. How do you open up and capture a blue ocean of uncontested market space. The objective of the thesis was to present different schools of strategy and the blue ocean strategy in particular. The elimination reduction improvement creation net 4.
After having dealt with the blue ocean metaphor as well as having clarified the concept of value innovation, the chapter moves on by describing the basic analytical tools and frameworks that characterize the blue ocean strategy. Pdf blue ocean strategy as a tool for improving a companys. List the factors the customer cares about, and current dimensions of competition. The basic component of our strategy canvas, the value curve, is a tool we. Implementing the blue ocean strategy is, simply put, a gargantuan task. Using key blue ocean tools for strategy rethinking of a sme. As mauborgne2005 said, the capacity of an enterprise to move into the blue ocean could be described as the business success. Blue ocean strategy canvas excel template ignition framework. To get started, first list the products or services you want to compare. Jun 23, 2007 blue ocean strategy method templates 1. Simple strategy canvas template for powerpoint slidemodel.
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. Within the current business market, the companies are always involved in fierce competition, due to the development of technology and globalization. It is designed to give you an immediate snapshot of how your businessproductservice stacks up against the competition. Survive and further develop the company seems to be harder than before. In this way, information can be built to help formulate a competitive strategy. Blue ocean strategy step 1 creating a strategy canvas.
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