Buy blue ocean strategy book online at low prices in india. Unlike the red ocean strategy, the conventional approach to business of beating competition derived from the. In short, you create a blue ocean by focusing on the factors that customers really care about, while discarding factors they dont. Red ocean is a 2007 firstperson shooter video game created by german company collision studios. Blue ocean strategy red ocean strategy blue ocean strategy compete in existing market space. There strategy is focused on providing a lowcost no frills airline. Let us say the market that we operate is an ocean cle. Chan kim is co director of the insead blue ocean strategy institute and the boston consulting group bruce d. The opposite to the blue ocean is the red ocean, which is where the existing competition is fighting it out for market share with one another as explained below. Its the best part about the book is it speaks with examples which is what i prefer. Blue ocean strategy is a collection of wisdom, systematic process and framework which were formulated after extensive management research and studies of companies that exhibit characteristics of certain management principles that help these compa. Blue ocean strategy is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. The premise of the book is that companies can succeed by creating. Red ocean looks at cost saving or differentiation while blue ocean focuses on doing both.
Before apple launched the iphone there were a number of analysts who predicted apples imminent failure in the handset market, after all, competing with phone manufacturers was not like competing with pc manufacturers handset manufacturers were much more dynamic. Is amazon dooming retailers or are retailers dooming. Blue ocean strategy presents a systematic approach to making the competition irrelevant and outlines principles and tools any company can use to create and capture their own blue oceans. One of my favorite business books is called blue ocean strategy, written by w. Blue ocean vs red ocean strategies 6 major differences red bull case study published on june 2, 2016 june 2, 2016 92 likes 5 comments. Red ocean strategy is a strategy which aims to fight and thrash the competition. Kim and renee mauborgne, blue ocean strategy suggests an organisation should look to create a new demand in an uncontested market space. It reduced costs by using plastic instead of metal, for example, and reducing the parts in each watch from 150 to 50. They represent businesses that may not be around today, or werent around until they came on to the scene. The majority of businesses practice some form of the red ocean strategy. A red ocean is a metaphor for a market full of competitors. The concept of blue ocean strategies is new in the business world as it was first published in 2005 in the book manual blue ocean strategy, by w. 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. You can think of the color red being used in the term red ocean because of the bloodbath that a highly competitive marketplace can sometimes feel like.
Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking away from the competition. The new chapters in the expanded edition of the book deal with the issues of how to develop and align the three. How to create uncontested market space and make the competition irrelevant from the worlds largest community of rea. Back in 2008, i wrote a paper on blue ocean strategy which was published at the international conference on management.
Blue ocean strategy chan kim and renee mauborgne was released in 2005 by harvard business school press. Retailers are focused on competing instead of creating. It is either when businesses enter an oversaturated marketplace, or they simply defend. Unlike red oceans, which are well explored and crowded with competitors. But gradually this blue ocean market became red ocean as many other companies like hyundai and chevrolet entered the market. Blue ocean strategy is a worldfamous strategy book and strategy model of the same. A red ocean strategy involves competing in industries that are currently in existence. Red ocean is a part of our business and thought processes and is therefore the only concept we look at while formulating strategies. A red ocean strategy is a strategy which aims to fight and beat the competition.
Pros and cons of blue ocean strategy essay example. A global bestseller and one of the best business strategy books available. The database and research have continued to expand. Henderson chair professor of strategy and international management at instead, france the worlds second largest business school. For the concept in business, see blue ocean strategy. Blue ocean strategy blue ocean strategy introduction blue ocean strategy is a marketing book by w. The mental models that undermine marketcreating strategies. The best example of blue ocean strategy that i know of is that of apple launching the iphone. They are competing very successfully in the already saturated red ocean of the shorthaul airline business. They are the authors of blue ocean strategy, which has sold over 3. In this way, it swam into a blue ocean, offering a plastic watch at a price that allowed people to purchase two or three watches at one. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue. Let me try to explain this in simple terms for the benefit of everyone. They are the authors of the international bestselling book blue ocean strategy which is recognized.
Everyday low prices and free delivery on eligible orders. Based on an eponymously titled book, this strategy argues that cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. An introduction to blue ocean strategy mba knowledge base. Red ocean blue ocean strategies with cheryl spangler youtube. For generations, business schools have taught some form of strategy for business leaders to execute when they are in a business that faces fierce. Is the blue ocean strategy book really a new approach or. For this strategy, the key goals are to beat the competition and exploit existing demand. These systems started to gain popularity in the 1970s with consoles that played only pong. Blue ocean vs red ocean strategies 6 major differences.
Often times, new markets are creating by finding new uses and markets for existing technology. How to create uncontested market space and make the competition irrelevant unabridged by kim, w chan, mauborgne, renee isbn. Companies should instead look for new market space and ways to reinvent the industry. As we begin our dive into the blue ocean strategy, it is important to understand what most businesses do, and why it doesnt work. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. The book succeeds in showing how businesses, can outdo their competitors. Michel porter supports to compete in existing market space, beat the competition, exploit existing demand, make the valuecost tradeoff, align the whole.
In their 2005 bestselling book blue ocean strategy w. How to create uncontested market space and make the competition irrelevant, a book by professors w. Jack hard hires a fellow diver to explore an old second world war submarine. Blue ocean strategy is a book published in 2005 and written by w. The concept of ideal strategy and its realization using. Chan kim harvard business school press, 2005, conceived of a new way for companies to drive profitable growth. People have always learned, applied, talked, discussed about competitive strategy red ocean. Six red ocean traps you should know blue ocean strategy. The book mostly borrows from a range of over 140 strategic marketing moves within a period of over a century. In this article you will learn how to make your competition irrelevant and have sales and profit.
Blue ocean strategy pushes companies to create new industries and break away from the competition. Applying blue ocean strategy to digital marketing smart. An analytical study of red ocean and blue ocean strategy. Blue ocean strategy is to defined, in red oceans, existing industries and businesses, an unknown market space that has never been tapped by any player in the current industry. Compete in existing market space create uncontested market space beat the competition make the competition irrelevant exploit existing demand create and capture new demand make the valuecost tradeoff break the valuecost tradeoff align the whole system of a firms activities with its strategic choice of differentiation or low cost. As such, red oceans already contain a number of competitors. They show why nondisruptive creation is as important as disruption in seizing new growth. First published in 2005, it was updated and expanded with fresh content in 2015. How to create uncontested market space and make the competition irrelevant audiobook by w. This was the time when maruti redesigned its strategies and came up with a middle level car swift. Intelligent readers dont need help figuring that out. How to create uncontested market space and make the. Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w.
In this 5 minute blog, ill tell you what the difference is between a red ocean vs blue ocean and how you can survive a red ocean and swim into a more profitable and audible blue one. They are the authors of blue ocean strategy, which is recognized as one of the most iconic and impactful strategy books ever written. This blog article is a overview of some of the key points of the book by w. Do you want to break out of the red ocean of competition. The research focused on discovering the common factors that lead to the creation of blue oceans and the key differences that separate those winners from the mere survivors and those adrift in the red ocean. Red ocean strategy bedrijfsmanagement, bedrijfsplanning, zakelijke tips. Surface 3 and apple watch red oceans v blue oceans strategy. With a focus of not just beating your competition but making them irrelevant, blue ocean strategy is all about thinking outside the box. Based on a study of 150 strategic moves spanning more than 100 years. It is being published in a recordbreaking 44 languages and is a bestseller across five. A good example of red ocean strategy is the european airline ryanair.
It became a huge bestseller, and remains popular today. In red ocean companies try to surpass their rivals to take hold of a greater share of existing demand. Blue ocean strategy is an important book for anyone seeking a strategy that can help them in their career and in business. Innovation, new market space and creating demand are central characteristics. By that we can see that there is a lot of interest by the business people and academics around the world about that subject. Recognized as one of the most iconic and impactful strategy books ever written, blue ocean strategy, now updated with fresh content from the authors, argues that cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. Blue vs red ocean endicott masters in international admin. History and background a video game console is just a computer that is made only. Perhaps one of the most thoughtprovoking facets of blue ocean strategy is the fact that through research, analytics and realworld examples, kim and mauborgne effectively debunk the notion that new markets are created by new technology. Red ocean marketing focuses on competition in the existing market space by directly competing with others. Stream and download audiobooks to your computer, tablet or mobile phone. 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 including examples and pdf download.