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. Chan kim, of blue ocean strategy, expanded edition 2015. However, the blue ocean strategy is still little known and rarely used for. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. What is distinctive about blue ocean strategy as a. This paper aims to give the main guidelines for strategic implementation of blue oceans strategy and. Jun 21, 2007 blue ocean strategy red ocean strategy 2. Value innovation value innovation places equal emphasis on value and innovation. Red ocean strategy blue ocean strategy compete in existing market space beat the competition exploit existing demand make the valuecost tradeoff. Today many consultancies and managers responsible for innovation use the blue ocean framework as one of their top 5 innovation tools. The bos six path framework powerpoint slide is featured on the slide design. The four actions framework aids in eliminating the tradeoff between differentiation and low cost within a company.
Blue ocean shift, however, provides a clear process for business identifying opportunities and developing plans for. This blog article is a overview of some of the key points of the book by w. To aid you in completing this step and all the other steps in. May 21, 2018 this masterclass examines the blue ocean value innovation process, how it works in practice and how it has evolved since the publication of blue ocean strategy 2005 by w. Blue ocean strategy how to create uncontested market space. 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 is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. Pdf harvard business school press blue ocean strategy. Blue ocean strategy case study service nsw 3 1 introduction blue ocean strategy1 has been used extensively to transform the public sector around the world at a local, state and national level.
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 six paths framework is a core strategic tool used in blue ocean strategy. Theeffect of blue ocean strategyon increasing competitive. The creation of blue oceans is about driving costs down while simultaneously driving value up for buyers. Chan kim and renee mauborgne allows managers to address the search risk many companies struggle with. The six paths framework allows managers to look beyond the common restraints of their industries for new opportunities. Value innovation is a new way of thinking about and executing strategy that results in the creation of a blue ocean. This tool is the central diagnostic and action framework for building a compelling blue ocean strategy.
Specifically, well discuss the blue ocean strategy six paths. 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. Emotional appeal across chain of across substitute industries reduce buyers new eliminate value create across curve across time complementary offerings. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. Six principles of blue ocean strategy formulation principles execution principles 1. Strategy canvas a diagnostic tool for building a compelling bos it capture the current state of play in the known. Optionally, you can download a convenient pdf with all six parts of this series, just click the.
Reviewing the blue ocean strategy university of twente student. Feb 02, 2008 what is the six paths framework, and how can it be used to reconstruct market boundaries in order to break from competition and create blue oceans. Made by group d of the minor global trendwatching 2015. This is the third and final part of the blue ocean strategy series. Chan kim and renee mauborgne, professors at insead. Blue ocean strategy for your learning business exploring. Pdf using key blue ocean tools for strategy rethinking of a. While blue ocean strategy helped to identify new avenues for strategic success, it fell short on providing the actual steps needed to jump from a crowded marketplace into the fabled blue ocean of the title. The process is focusing on the big picture, is visual, highly collaborative and experiential.
This tool is the central diagnostic and action framework for building a. Furthermore the blue ocean strategy was awarded with. The structure can be created or recreated by the steps taken by players in the market. 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. May 26, 2015 summary of the first four chapters of the international bestseller blue ocean strategy. Download this workshop export your workshop, create deliverables in seconds. Bos six path framework powerpoint slide slidemodel. Look across strategic groups within industries continuing in our series which takes a closer look at each of the paths in blue ocean strategys six paths framework, our focus shifts to the second path. The core bostools are the strategic canvas with old and new value curve, six searching paths framework, fouractionsframework and sequence of blue ocean strategy. Applying the six paths framework to reconstruct market boundaries. This paper aims to give the main guidelines for strategic implementation of blue oceans strategy and how this kind of strategy is a part of turnaround. First and foremost on their list is a tool used to break out of competition and make competition irrelevant called the strategy canvas.
The core bostools are the strategic canvas with old and new value curve, six searching paths framework, fouractions framework and sequence of blue ocean strategy. As part of our ongoing series, blue ocean strategy wisdom, we turn to pages 47 48 of the book blue ocean strategy coauthored by professor w. Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to. Customer experience, transformation firm in india, canopus. Blue ocean strategy for your learning business exploring the 6. At the center of the slide is a table showing the framework. Using key blue ocean tools for strategy rethinking of a sme. This canvas helps you identify commercially compelling blue oceans by reconstructing market boundaries. 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. Blue ocean strategy roadmap on value innovation to create uncontested market space and make the competition irrelevant. Reviewing the blue ocean strategy universiteit twente.
Blue ocean strategy is a structured approach to breakthrough innovation. There are six basic approaches to reconstruct market boundaries, also known as six paths framework. The effect is to break away from structuralist strategic approaches competing a red ocean toward a reconstructionist strategic approach creating and operating in a blue ocean. Blue ocean six paths framework canvas new workshop creatlr. Blue ocean shift outlines the process of how to extract and interpret the results of your six paths market exploration and develop blue ocean alternatives blue ocean shift presents a sample completed eliminatereduceraisecreate errc grid and a resulting tobe strategy canvas for your reference. Execution principles overcome key organizational hurdles build execution into strategy the four actions framework. It enables them to successfully identify out of the haystack of possibilities that exist, commercially compelling blue oceans by reconstructing market boundaries. During the simulation, you will apply blue ocean strategy concepts, tools and methodology such as the strategy canvas, six paths framework, and the eliminate reduceraisecreate grid, to reconstruct market boundaries, unlock new demand. The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. This masterclass examines the blue ocean value innovation process, how it works in practice and how it has evolved since the publication of blue ocean strategy 2005 by w. Apr 27, 2012 if blue ocean strategy dominates in the shortterm while porters five forces dominates in the longterm such that profits are positively related to the number of firms in the shortterm but negatively related in the longterm, that would imply that innovation by new firms generates shortterm competitive advantage with associated higher. Value innovation and how to successfully incubate blue. Blue ocean strategy introduces analytical tools to minimize risk.
Six paths to discovering a blue ocean idea book summaries. Renee mauborgne of insead explains how a landmark idea is evolving. Chan kim and renee mauborgne, develops and explains how to beat the competition by reaching beyond it into new unexplored markets. Pdf the purpose of the article is to explore opportunities for rethinking the strategy of small and. You can navigate directly to specific sections of the article by using the table of links below. Blue ocean strategy and the designthinking have a fair amount of similarities in their respective thought processes. Eight key points of blue ocean strategy heres the essence of blue ocean strategy captured in eight key points. The six paths framework in formulating blue ocean strategy are 1 look across alternative. Industry o clearly, netflix is going after industries that dont yet fully exist with both their recommendation engine as well as their vod service. Blue ocean strategy and new business models in the food. Six paths consulting articles what is blue ocean strategy see more.
Value innovation and how to successfully incubate blue ocean. Addressing the blue ocean framework\textquoterights tools, this paper will accentuate the importance of using the six paths framework carefully when generating new business models. The second part describes the four principles of blue ocean strategy formulation. Apr 03, 2010 formulating blue ocean strategy 75 mins 120 mins 120 mins exploration. Integration of bos with designthinking has the potential to provide a. Applying the six paths framework to reconstruct market.
It can be used as a tool to break competition and reconstruct market boundaries. What is the six paths framework, and how can it be used to reconstruct market boundaries in order to break from competition and create blue oceans. Download blue ocean six paths framework canvas download, print and prepare your offline brainstorms. This strategy targets six principles that can be used in every organization so that they can arrive at a successful development and fulfilment of new markets. The six paths framework creating blue oceans starts by reconstructing the six conventional boundaries of competition. The authors use the metaphor of the blue ocean as a direct contrast to red oceans. The blue ocean strategy offers users a framework for creating uncontested market space and. Chan kim and renee mauborgne as explored in their new book their new book blue ocean shift 2017. These are designed to challenge conventional thinking. Framework, errc grid, six paths framework, are some of these. List the factors the customer cares about, and current dimensions of competition. Deputy manager marketing, jain irrigation systems ltd.
The framework redirects your attention towards the following six tenets under the blue ocean strategy methodology. Six paths framework the six paths framework allows managers to look beyond the common restraints of their industries for new opportunities. Netflix clearly has a number of opportunities to transcend a number of categories of the six paths framework to plant them squarely in a number of blue oceans. The six paths framework in formulating blue ocean strategy. Blue ocean strategy is about value innovation in general, in which no emphasis is put on reducing the speed to market. This framework addresses not only the analytic aspects behind the creation of blue ocean strategy but also the allimportant human aspects of how to bring an organization and its people on this journey with a willingness to execute these ideas in. Summary of the first four chapters of the international bestseller blue ocean strategy. Formulation principles reconstruct market boundaries focus on the big picture, not the numbers reach beyond existing demand get the strategic sequence right 2. The blue ocean strategy framework has evolved from value. This helps them to move out of red oceans and create blue oceans. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Blue ocean strategy formulation the four principles of.
The six paths frameworkthe six paths framework across functional or the strategic six paths framework provides a structured process for finding new value curves. Six paths framework this framework helps guide a company to look beyond existing markets for the potential for new markets. Blue ocean strategy is centered on strategies to differentiate your products and services radically. The blue ocean strategy formulation process is an opportunitymaximizing and riskminimizing approach to creating blue oceans in a structured and replicable way. Blue ocean strategy including examples and pdf download. Value innovation strategy competes in an uncontested market space. Drawing on more than a decade of new work, kim and mauborgne show you how. Blue ocean studio you can access a free trial here. 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. Aug 08, 2019 the four actions framework aids in eliminating the tradeoff between differentiation and low cost within a company.
In this article well explore some blue ocean strategy tools that can help you achieve these very goals. To break from competition, a organization has to reconstruct the market boundary which is the first and foremost principle in creating blue ocean strategy. How to create uncontested market space and make the competition irrelevant, w. Six paths framework the eliminatereduceraisecreate grid.
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