blue ocean strategy book summary

Bratton forced top brass to ride the subway everyday to see the graffiti, gangs, and aggressive beggars firsthand. Concentrate on delivering the critical factors while eliminating needless ones. Blue Ocean Strategy (BOS) Introduction to BOS BOS Tools : Strategy Canvas & E.R.R.C. Myth: You must be first to market to have a successful blue ocean strategy. Blue ocean strategies can be depicted on a strategy canvas, which shows how your offering and competing offerings stack up along a range of factors. Think outside your immediate market to create a blue ocean strategy. Chapters 3-6 are about developing and planning the strategy. Starbucks, Comic Relief, and advertising company JCDecaux didn’t use new technology. The further removed they are from strategic decision making, the more they need to be communicated to. Blue Ocean Strategy is a book published in 2004 written by W. Chan Kim and Renée Mauborgne, professors at INSEAD, and the name of the marketing theory detailed on the book. Offering complements to your product may add additional value through bundling. Furthermore, no downstream step should strongly influence an upstream step. The first step to creating blue ocean strategy is to find new ideas and redefine markets as they’re commonly understood. Make clear how employees will be evaluated. The first two items concern revenue and sales. Blue Ocean Strategy proposes that businesses can have more success by creating a blue ocean, rather than trying to compete in the red ocean – the traditional market space that is filled with feuding competitors. Now that we understand what blue oceans are, the rest of the book discusses how to create a blue ocean strategy and how to execute it. Cognitive – recognizing the need for change. Bratton invited his general manager for a tour of his squad, picking him up in one of the smaller cars. A major reason imitative competition is so popular is that it provides a straightforward blueprint for what to do - just copy what your competitor’s doing. Examining a wide range of strategic moves across a host of industries, Blue Ocean Strategy highlights the six principles that every company can use to successfully formulate and execute blue ocean strategies. Can you combine those attributes into a new offering? In their analysis of strategic moves over 120 years, the authors found a consistent pattern to successful blue ocean strategies: value innovation. Over time, markets become crowded, products become commodities competing on price, and profits dissipate. This simple visual clearly situates your previous and new strategy in the context of the overall industry and provides an easy-to-understand rallying cry for all levels of the company. In the 1990s, telecom in Japan consisted of cell phones (not yet connected to the internet) and the internet accessible through desktop computers. After two hours of driving, with little legroom up front and Bratton struggling with his police gear, the manager conceded. Because it doesn’t exist, you don’t have competitors competing directly against you. Myth: Blue ocean strategy requires new technologies. Read the rest of the world's best summary of "Blue Ocean Strategy" at Shortform. Don’t rely solely on market surveys or metrics. A Book Review: Blue Ocean Strategy Blue Ocean Strategy is a business strategy book published in 2005 by Harvard Business School Publishing Corporation in United State of America, it was written by W. Chan Kim and Renée Mauborgne of The Blue Ocean Strategy Institute and professors at France’s INSEAD business school and cofounders of the … Because your team mobilizes your strategy, you need to communicate clearly. On the vertical axis: Segment buyers into distinct groups. Here's what you'll find in our full Blue Ocean Strategy summary: What blue oceans are, and how you create one for your business; Why some businesses succeed in creating blue oceans, and why others fail Market share increased from 9% in 1908 to 61% in 1921, Now that cars were mass-market, Ford’s cars were getting boring. Do you feel like your strategy differs little from the competition surrounding you? Involve people by asking for their input and allowing them to discuss each other’s ideas. The strategy canvas makes this clear. Myth: To create blue oceans, you must leave your core business. If you can’t offer something of buyer utility, there’s little point in figuring out how much it costs to produce. Blue Ocean Strategy provides a systematic approach to making the competition irrelevant. #BlueOceanShift and #BlueOceanStrategy are worldwide business strategy bestsellers, helping you to move beyond competing and start creating your #blueocean. Segmentation can create more value through focus, but it often constrains your market size necessarily. Furthermore, The marketing as a cheap car backfired when the Nano was seen as a “poor man’s car,” violating the aspirational preferences of Indian buyers. Blue Ocean Strategy was first published in 2005 to explain how organizations can successfully make the leap from cut-throat “red oceans” to wide-open “blue oceans”. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. It is a roadmap to move you, your team, and your organization to new heights of confidence, market creation and growth. Here strategy is seen as making a choice between differentiation and low cost.21 In contrast, those that seek to create blue oceans pursue differentiation and low cost simultaneously.” ― W. Chan Kim, Blue Ocean Strategy, Expanded Edition: How to Create Uncontested Market Space and Make the Competition Irrelevant Tired of competing head-to-head with other companies? 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 is a book summary I have written originally as part of the assignment for my Harvard innovation and entrepreneurship class. Because of widespread access to information and resources today, it becomes too easy for businesses to enter an already established market. Try to maximize all factors and try to be the best at everything. In the 1970s, Japanese manufacturers created a blue ocean of small, efficient, high-quality cars. MicroSummary: The Blue Ocean Strategy is a business book that has become mandatory for modern managers by proposing an organized structure to identify and implement differentiation in any industry and help you grow your business faster. Companies have long engaged in head-to-head competition in search of sustained, profitable growth. Make them touch, see, and feel the problem so they can come to their own conclusions about the need for change. Limiting car options reduced the number of unique parts needed. In other words, a blue ocean is a new, uncontested market space where the existing competition is irrelevant. Not only did this attract non-customers into the sport by lowering the skill barrier, it also converted current golfers, who had begrudgingly accepted the difficulty of golf and blamed themselves for hitting poorly (these could be seen as “soon-to-be” noncustomers. The performance theater was upgraded with more comfortable seats, avoiding circus hard benches and sawdust floors. Use features like bookmarks, note taking and highlighting while reading Blue Ocean Strategy, Expanded Edition: How to Create … Abstract: W. Chan Kim (2004) Renée Mauborgne. They thus became a publicly maligned symbol of excess. What alternatives do customers have to your product? In 1893, the Duryea brothers created the first automobile. Its authors, INSEAD professors W Chan Kim and Renee Mauborgne, continued their steady progress up the Thinkers50 list, finishing second to Christensen this year. It created a new theatrical show that combined the acrobatics with a premium theater experience. Blue Ocean Strategy by W. Chan Kim and Renée Mauborgne Book Summary & Commentary 4.5 on Amazon 2004 240 pages "Blue Ocean Strategy argues that firms need to go beyond competing and the mere improvement of product or services in overcrowded industries and pursue value innovation to open up new market space and make the competition irrelevant." What factors does the industry take for granted that should be eliminated? Casella wines created [yellow tail], Chrysler created the minivan, Apple created the iMac. The book argues there are three tiers of noncustomers: Consider the commonalities among all three tiers of noncustomers, not differences. He graduated from Ross School of Business. Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant, Don’t Compete with Rivals—Make Them Irrelevant. These will be phrased as myths that are then debunked: Myth: Blue ocean strategy is a customer-led strategy focusing on existing customers. For each group, plot a. Cirque du Soleil’s shows featured similar acrobatic wonderment and thrill as circuses. It introduced entirely new elements like high production value and artistry, which were important to their customers but completely absent from normal circuses. Think about your target customer, then think about what factors about the offering the customer really cares about. Find which factors they care a lot about. Examining a wide range of strategic moves across a host of industries, Blue Ocean Strategy highlights the six principles that every company can use to successfully formulate and execute blue ocean strategies. Consider why customers trade up and down in quality. But Ford and Chrysler followed this strategy, and they began a red ocean period of competition and imitation. https://amzn.to/2Tysenayou can purchase this book (Blue ocean strategy ) with above link. Although some blue oceans … Consider alternatives that customers have for your product. The massive pre-launch hype also caused overcommitment to manufacturing, rather than a leaner and iterative approach.). Their debut was in 2003 at position 31. Read on the go with our iOS and Android App. The more your offering differs from the competition’s the more likely your blue ocean strategy will truly be a new offering. Could you combine these features into your offering? Instead of featuring star clowns and lion tamers, they anonymize the performers, thus preventing performers from gaining leverage and starting a bidding war with competitors. He is the co-author of the 2005 book Blue Ocean Strategy. In this frame-changing book, Kim and Mauborgne present a proven analytical framework and the tools for successfully creating and capturing blue oceans.
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