The four actions framework is used to help create value innovation and break. In their 2017 new york times bestselling book, blue ocean shift, kim and mauborgne share how to put these practical marketcreating tools into practice to move from red to blue oceans and to do so in a way that people own and drive the process. Sadly, most of your sins could easily be ascribed to 80% of the business strategy books published nowadays. Public sector application and research, including the application of blue ocean shift, blue ocean strategy, and blue ocean leadership to governments and nonprofits. 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. A game theorists guide to success in business and life by avinash k. Published october 9, 2017 updated october 10, 2017. A crucial tool in this odyssey is the fouractions framework. Build your blue ocean strategy with the four actions framework. Blue ocean strategy is the systematic pursuit of new market and new demand creation through the simultaneous pursuit of differentiation and lower cost value innovation. Your productservice must raise and create customer value gain and simultaneously reduce and eliminate features or services that are less valued, or not valued at all, the customer pain. 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. I must confess that value innovation on a first read sounds counter intuitive to the twin principles of. Blue ocean strategic sequence for barnes and noble forum.
By reorienting a company towards the factors being. Value innovation strategy competes in an uncontested market space. The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. Please identify the value innovation that you will be creating to move your business into a blue ocean market space. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. Intelligent readers dont need help figuring that out. 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. This blog article is a overview of some of the key points of the book by w. Blue ocean strategy on jet blue case study by neil k. Remember what the product that company delivers is all about. Introduction it is not hard to see why blue ocean strategy has been so popular.
The strategy canvas the strategy canvas is both a diagnostic and an action framework for building a. How to create uncontested market space and make the competition irrelevant from the worlds largest community of rea. The blue ocean strategy seems to be a perfect solution for present companies to become sustainable successful. The case describes a series of blue ocean strategic moves made by in the crm application market. The strategy canvas captures the current strategic landscape and future prospects for a company. The subscription model removed costs associated with low value activities in purchasing and deploying the service, allowing them to focus on strategic activities with a greater impact on their business customers could test the application in a single work group or division first, then extend the use. Chan kim and renee mauborgne in 2005, the blue ocean strategy is a relatively new planning framework. In this paper the blue ocean strategy is deployed on the online industry, especially on ecommerce. Sarah layton in blue ocean strategy on july 6, 2009. 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. Use our free blue ocean 4 actions framework template to create, collaborate on.
The top 15 strategic management books startup grind. In their 2017 new york times bestselling book, blue ocean shift, kim and mauborgne share how to put these practical marketcreating tools into practice to move from red to blue oceans and to do so in a way that people own. What is blue ocean strategy and how can you create one. The books online companion has a number of free tools for readers to download. Blue ocean strategybos frameworks and tools include. The four actions framework aids in eliminating the tradeoff between differentiation and low cost within a company. By creating this plot, you can find imbalances in your strategy, such as only raising and creating which leads to overengineering and trying to be the best or only eliminating and reducing which leads to mere price competition. To break the tradeoff between differentiation and low cost in creating a new value curve, the framework poses four key questions, shown in the diagram, to challenge an industry. Blue ocean strategy formulation the four principles of strategy. List the factors the customer cares about, and current dimensions of competition. Why should companies continue to fight in tough competitive markets waters that are red with blood when they can find new waters that ar.
The blue ocean strategy book itself offers a variety of tools and frameworks for a. There is a strong market for cheaper substitutes to. Reduce determine whether products or services have been overdesigned in the race to match and beat the competition. Four actions framework template blue ocean framework miro. The subscription model removed costs associated with low value activities in purchasing and deploying the service, allowing them to focus on strategic activities with a greater impact on their business customers could test the application in a single work group or division first, then extend the use to other divisions once the test was successful. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. It is being published in a recordbreaking 44 languages. Canon copier industry case study blue ocean strategy example. Blue ocean strategy canvas excel template ignition framework. Canon copier industry case study blue ocean strategy. There are four things you would learn specifically alignment barriers. In their 2017 new york times bestselling book, blue ocean shift, kim and. Eliminate consider eliminating factors that companies in your industry have long competed on or factors are no longer have value or may even detract from value.
In other words, before one can identify what bos strategy well suits a company, one. The database and research have continued to expand. This, the authors refer to as the cornerstone of the blue ocean strategy. How to create uncontested market space and make the competition irrelevant, a. 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 such as the strategy canvas and the four actions framework. A fouraction framework for blueocean innovation the. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. The fouractions frameworkon blue ocean strategy to reduce, create, raise and eliminate industry practices to create a blue ocean fromthe industry red ocean. Summary of the first four chapters of the international bestseller blue ocean strategy. Het four actions framework van chan kim en mauborgne is een tool uit het boek blue ocean strategy om op een systematischere manier tot. Creating barriers in the value proposition, people and profit. Four actions framework of blue ocean applied to jet blue. Together, they wrote a bestselling book blue ocean strategy.
By contrast, a red ocean is a market space that is already developed and saturated. It pushes companies not only to ask the questions posed in the four actions framework but also to act on all four to create a new value curve or strategic. 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. Drawing on more than a decade of new work, kim and mauborgne show you how to move beyond competing, inspire.
Achieved via the delivery of features that have a highest marginal benefit to customer needs. 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. The structure can be created or recreated by the steps taken by players in the market. Strategic planning frameworks and models smartsheet. According to the wine economist, it is because it is not just wine, but a new type of product within the wine industry. Chen, information systems theory and practices red ocean vs. Blue ocean strategy is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. Blue ocean strategic sequence for barnes and noble jonathan jolley, student university, united states, member barnes and noble while it is not presently in a blue ocean environment it is certainly a company that has a history of pursuing such environments and appears to be following the same procedures to achieve blue ocean strategy success. In this exercise use the strategic canvas and four actions framework to see if you can identify a blue ocean company within or outside an existing red ocean industry. First and foremost on their list is a tool used to break out of competition and make competition irrelevant called the strategy canvas.
Four actions framework blue ocean strategy shortform blog. Blue ocean shift is the essential follow up to blue ocean strategy, the classic and 3. Blue ocean strategy including examples and pdf download. It allows users to clearly see the factors that the industry competes on and the factors that are being ignored.
Chan kim and renee mauborgne 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. Chan kim and renee mauborgne is used to reconstruct buyer value elements in crafting a new value curve or strategic profile. First, provide your strategy canvas and in detail explain the significance of the factors in your strategy canvas. 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. The four pillars of blue ocean leadership insead knowledge. Shortform has the worlds best summaries of books you should be reading. They are ranked in the top 3 in the thinkers50 listing of the worlds top management gurus and are the recipients of. Blue ocean strategys four actions framework poses four central questions that let companies break the valuecost tradeoff and create a blue ocean.
Blue ocean strategy has challenged business leaders to. There are 03 types of analytical tools in formulating and executing blue ocean strategy. Social sector application and research, including such topics as how blue ocean strategy can be applied in the developing world to mitigate poverty and improve education and health. Chan kim and renee mauborgne was first published in 2005. In a blue ocean you change the playing field of strategy. 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. They are the authors of blue ocean strategy, which has sold over 3. This tool is the central diagnostic and action framework for building a compelling blue ocean strategy.
Based on a study of 150 strategic moves spanning more than 100 years across 30 industries, the authors argue that. Previous phones usually came in either one or two colors at the most. The strategy canvas the strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. These two professors, and game strategy theorists, use case studies from pop culture, history and sports to prove how individual and business interactions can use game components as. The company was able to identify and answer the needs of a specific and new market in the us by applying the four actions framework of the blue. A good blue ocean strategy has items in each of the four grids. The four actions framework and the eliminatereduceraisecreate grid are almost a straightforward stepbystep strategy which offers an answer to all four parts of the marketing mix. The blue ocean strategy tools four actions framework. Strategy tool is a generic name for any method, model, technique, tool, technology. Before the blue ocean strategy framework can be applied, many strategists utilize porters 1979 five forces theory as a strategy canvas can only be created once one captures the contemporary state of the play by detailing the factors that players compete on in terms of products, services and even delivery.
With the aid of the four actions framework figure 4 and the. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. Effective blue ocean strategy should be about risk minimization and not risk taking. Made by group d of the minor global trendwatching 2015. The 4 actions framework is a core strategic tool used in blue ocean strategy. In their 2017 new york times bestselling book, blue ocean shift, kim and mauborgne. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. How to create uncontested market space and make the competition irrelevant, it seemed too good to be true. The blue ocean strategy recommends that a successful business should be able to develop a new demand in an uncontested markets rather than compete directly with other competitors in the industry.
Blue ocean strategy ppt slides linkedin slideshare. Reviewing the blue ocean strategy universiteit twente. Mece is an acronym for mutually exclusive me and collectively exhaustive ce. In an already contested market, there is a natural cap in place on the potential of your.
Analysis plandata usedkey assumptions analysis plan. Another tool in the blue ocean strategy framework is the idea of creating a new value driver for the product or service in question. It is being published in a recordbreaking 44 languages and is a bestseller across five continents. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. Blue ocean strategy value innovation strategy canvas four actions. Although there is an inevitability to having to compete in crowded markets, there are too many advantages to avoiding this situation to ignore the possibility of looking for blue space. It continues with shortcomings of current policymaking approaches and proposes a new approach based on a business strategy called the blue ocean strategy bos. A fouraction framework for blueocean innovation the globe and.
The four actions framework guide your student life with this. Blue ocean strategy usually talks about creating a blue ocean for your business and creating barriers for other businesses to imitate. Blue ocean strategy introduces analytical tools to minimize risk. The bos is a successful example of executing change as a crucial source of high business growth tushman and oreilly, 1997, in contrast to conventional strategy models that. Strategy canvas four actions framework errc grid six paths framework. In particular, the case addresses the concern of business executives over the applicability of blue ocean strategy in the b2b area. Mece framework mckinsey if are working for mckinsey, or any other elite consulting firm, youre probably be dealing with tons of data that you organize using the mece framework. Introduction to strategy strategy mba crystal ball.
Create a new market space through innovating on the value you give to the customer. 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 stepbystep through how to take your. The six paths framework and four action models are used in creation of many successful ecommerce. The blue ocean strategy book defines red oceans as those which already contain a high level of competition. Many of the case studies are based on how large companies have. The idea of a blue ocean is to create an uncontested market space for your company. The four actions framework is used to help create value innovation and break the valuecost tradeoff. The premise on which the blue ocean strategy thesis is built, is a simple one. Apply the fouraction framework of eliminate, raise, reduce, and create. Rank yourself and each competitor for each of the competitive factors creating a strategy curve. The seminal book blue ocean strategy has sold over 3.
1501 1466 589 448 415 573 1470 705 993 1209 190 286 166 1017 259 1460 645 1246 188 766 1017 1172 925 1160 734 835 256 598 366 949