Red oceans are all the industries in existence today. A blue ocean strategy is based on creating demand that is not currently in existence, rather than fighting over it with other companies. Namun ternyata, kesuksesan sebuah perusahaan kini tidak lagi diukur dengan memenangi persaingan berdarahdarah di red ocean strategy. Blue ocean strategy page 1 main idea the best way to beat your competition is, in fact, to stop competing against them.
Clearly, a red ocean strategy tends to invite strong competition, which often becomes a race to the bottom in terms of pricing. To succeed in the long term, companies must find ways to create new markets. In other words, when you go headtohead against rivals for a share of the existing market, this is like competing in a red ocean. See comparison between red and blue ocean strategies here in one simple table. Blue ocean strategy blue ocean strategy pdf five keys to blue ocean strategy blue ocean strategy 2004 blue ocean strategy expanded edition book summary blue ocean strategy blue ocean strategy book by w. Purple ocean strategy purple ocean strategy just as blue ocean strategy states that a red ocean strategy competitive strategy does not guarantee success for the firm purple ocean strategy also claims that blue ocean strategy cannot guarantee the business success in the long run since the blue ocean strategy will finally turn red. In a red ocean environment, the market becomes more fierce and crowded as competitors try to steal share.
Generating new demand lies at the heart of any marketcreating strategy. Like the blue ocean, it is vast, deep and powerful in terms of opportunity and profitable growth. The authors of the bestselling blue ocean strategy have spent over a decade exploring that question. A third tool, the eliminatereduceraisecreate grid, pushes firms to act on all four questions posed by the four actions framework and to create a new value curve. To illustrate the difference between the blue ocean strategy and red ocean strategy, ive made an infographic that lucidly explains the 6 vital differences between a red ocean market and a blue ocean market. Blue ocean strategy challenges companies to break out of the red ocean of bloody competition by creating uncontested market space that makes the competition. Chan kim pdf download blue ocean blue ocean shift blue ocean strategie blue ocean shift pdf ocean blue sanded grout blue ocean shift espanol pdf red ocean strategy 15fen finding the blue ocean.
Pdf harvard business school press blue ocean strategy rajeh. In todays environment most firms operate under intense competition. In red oceans, industry boundaries are defined and accepted, and the. What is distinctive about blue ocean strategy as a. There is ample opportunity for growth that is both profitable and rapid. It is aimed at enriching blue ocean strategy with a case study in which we see the process of creating a blue. A marketcompeting strategy divides existing wealth between rival companies. Blue ocean strategy and new business models in the food.
For example, competing factors in blue ocean strategy are similar to the definition of finite and infinite dimensions in funky business. As competition increases, prospects for profit and growth decline. There is ample opportunity for growth tbat is both profitable and rapid. But its not always clear how to create a blue ocean strategy for yourself. Learn more about what a blue ocean strategy is here. Our aim is to make the formulation and execution of blue ocean strategy as systematic and actionable as competing in the red waters of known market space. What is blue ocean strategy about blue ocean strategy. If you want to avoid a red ocean, you should create a blue ocean strategy for yourself. You must keep in mind that there is a deeper potential of the marketplace that hasnt been explored yet. Sarah layton in blue ocean strategy on april 21, 2009.
In this article you will learn how to make your competition irrelevant and have sales and profit. Impact of blue ocean strategy on organizational performance. But, lets first understand what is blue ocean and how it is different from red ocean strategy. It requires the right research, patience and focus. But many companies have done their homework and succeeded thanks to this strategy.
Red ocean strategy focuses on competing in the existing market space with the current firms. Pdf blue ocean strategy download full pdf book download. The blue ocean strategy explains how to guide your business across seas with less competition and greater profitability. Implementing the blue ocean strategy is, simply put, a gargantuan task. How does blue ocean strategy differ from red ocean strategy. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Delivered by worldclass faculty, this programme will teach you how to apply the theory created by insead professors w. Blue ocean strategy pdf blue ocean strategy blue ocean strategy 2004 five keys to blue ocean strategy book summary blue ocean strategy blue ocean strategy expanded edition blue ocean strategy book by w. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. Blue ocean strategy, outlines the processes of removing the fight for competitive advantage and the battle for differentiation typical of many corporate strategies. Itu sebabnya kini hadir istilah baru yang disebut blue ocean strategy. Blue ocean strategy is a book published in 2005 and written by w.
In a few cases, companies can give rise to completely new industries, as ebay did with the online auction industry. Blue oceans denote all the industries not in existence today the unknown market space, unexplored and untainted by competition. 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. The goal of a blue ocean strategy is for organizations to find and develop blue oceans uncontested, growing markets and avoid red oceans overdeveloped, saturated markets. Pdf impact of blue ocean strategy on organizational. Pdf blue ocean strategy as a tool for improving a companys. How to create uncontested market space and make the competition irrelevant, w.
Before we dive into blue ocean strategy examples, lets get clear on what a. Blue ocean strategy adalah strategi menciptakan ruang pasar baru yang belum termanfaatkan. We will introduce the aspects of red ocean strategies that most of the companies use around the world, and then we will compare the advantages and disadvantages of using blue ocean strategies. Various types of strategies are used in strategic management such as red ocean strategy, blue ocean strategy, green ocean strategy, purple. Blue ocean strategy is where a company creates a completely new market space or market category. 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. The authors compared the blue ocean strategy with the red ocean. Reviewing the blue ocean strategy university of twente student. Value innovation strategy competes in an uncontested market space.
Your course participants will truly experience the power of blue ocean strategy by applying the theory and using the methodologies and tools described in the book. But its much more common for a blue ocean to be created from within a red ocean when a company expands the boundaries of an existing industry. Blue ocean strategy including examples and pdf download. 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. This blog article is a overview of some of the key points of the book by w.
Just as blue ocean strategy claims that a red ocean strategy does not guarantee success, funky business explained that competitive strategy is the route to nowhere. This new market space is created by launching new offerings, with the aim being to make the competition irrelevant so that an organization can grow, uncontested, at least in the beginning. Blue ocean strategy is a powerful framework for finding new business opportunities. Red ocean strategy, blue ocean strategy, innovation, room. To understand red ocean strategy let us begin by defining blue ocean strategy. 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. When expressed through a value curve, an effective blue ocean strategy has three complementary qualities. The blue ocean strategy simulation was designed with extensive input from the authors of the bestselling book blue ocean strategy. The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. The chart above summarizes the distinct characteristics of competing in red oceans red ocean strategy. The concept of ideal strategy and its realization using white ocean.
Blue ocean strategy can be applied across sectors or businesses. Most blue oceans are created from within red oceans by expanding existing industry boundaries. The sample paper on air asia blue ocean strategy familiarizes the reader with the topicrelated facts, theories and approaches. Blue ocean strategy displays an orderly way to deal with making the challenge unessential and traces standards and instruments any organization can use to make and catch their blue seas. The value of having a blue ocean strategy is better understood when compared to a red ocean strategy. Avoid these six red ocean traps firms trying to tap into new markets for growth often fall into the traps of putting resources into wooing existing customers and investing heavily in valueadded offerings. A company will have more success, fewer risks, and increased profits in a blue ocean market. Red oceans represent all the industries in existence todaythe known market space. Eight key points of blue ocean strategy heres the essence of blue ocean strategy captured in eight key points. However, blue ocean strategy provides a robust mechanism to mitigate risks and increase the odds of success. Blue ocean strategy with boss business simulation stratx. How to create uncontested market space and make the competition irrelevant pdf by w. How to create uncontested market space and make the competition irrelevant, a book by professors w.
Blue ocean strategy the blue ocean approach is a strategic tool that helps innovation strategists asses current and desired future strategic states whereas red ocean is a current state. List the factors the customer cares about, and current dimensions of competition. Blue ocean strategy introduces analytical tools to minimize risk. 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. Only then can companies step up to the challenge of creating blue oceans in a smart and. Companies pursue blue ocean strategies to make competition irrelevant. Insead blue ocean strategy offers a new perspective on strategy formulation and execution. Blue ocean strategy including examples and pdf download this blog article is a overview of some of the key points of the book by w. Aim of this dissertation is to investigate whether eataly, the largest wine and food marketplace of the world, entered a blue ocean via business model innovation. This blog article takes a look at what kind of roi some companies have achieved by implementing a blue ocean strategy. Blue ocean strategy powerpoint templates present better. Blue green red and purple ocean strategy slideshare.
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