Made by group d of the minor global trendwatching 2015. The value of having a blue ocean strategy is better understood when compared to a red ocean strategy. Blue ocean shift is packed with realworld examples of organizations facing the same constraints we all face be they politics, bureaucracy, or limited resources that applied the very tools and process outlined in the book to shift from competi. An example of a successful execution of a blue ocean strategy is the ipod. 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. Apr, 2016 lets understand blue ocean strategy with the help of an example. 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. Jan 02, 2011 apples ipod is the prime example of a product that is a. This strategy follows the approach recommended by the ancient master of strategy suntzu in the quote above.
I have read blue ocean strategy and ive used its premise many times. The historical case of nirmawheel which presented an innovative value and dramatic change in customers usage was considered the most typical example of blue ocean strategy in india siddhartha roy and tata group, 2010. Jul 16, 2015 in this article, we will look at 1 what is a blue ocean strategy. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. The concept was further expanded in their bestselling book of 2005, blue ocean strategy. What is the blue ocean strategy the term blue ocean was coined by two professors w.
This blog article takes a look at what kind of roi some companies have achieved by implementing a blue ocean strategy by w. One of the most successful efforts to do so is the book blue ocean strategy, by. The only thing that i am not very fond of the book is that theres too much repetition in the book until i got bored going through the 230 or so pages. Blue ocean strategy this new thinking makes it possible for innovative entrepreneurs to increase their chances for success and the extent of potential success. This blog article is a overview of some of the key points of the book by w. It is a pacifist marketing scheme and is considered a strategic planning tool for assessing a business. The five forces are the most important strategy framework to understand a given industry. Delivered by worldclass faculty, this programme will teach you how to apply the theory created by insead professors w. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w. Implementing the blue ocean strategy is, simply put, a gargantuan task.
Blue ocean is a slang term for the uncontested market space for an unknown industry or innovation. The value curve model can be used to instantly show where the aspect of value is created within the organizations offerings of products and services. Chan kim and renee mauborgne wrote a bestselling book, blue ocean strategy, which has been translated into 43 languages. Blue ocean strategy of apple from ipod to ipad presented by manu balaji kowshik mayur 2. One is by launching or introducing a completely new product, service, or concept. The strategy focuses on moving away from an existing market and seaching for new markets. Surface 3 and apple watch red oceans v blue oceans strategy. This case about apple, accompanied by a video, press articles, lecture slides and a teaching note, looks into the application of blue ocean strategy for managing. How to create uncontested market space and make the competition irrelevant. 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. With the launch of itunes, apple unlocked a blue ocean of new market space in digital music that it has now dominated for more than a decade. Apple observed the flood of illegal music file sharing that began in the late 1990s, enabled by file sharing programs such as napster, kazaa, and limewire. The reinvention of the circus model allowed the company to bring in more revenue than its more traditional. Blueocean strategyasabusinessstrategypositsthatthereisnonexisting.
Over the last fifteen years apple has made a series of successful marketcreatingor blue oceanmoves think the imac, ipod, itunes, the iphone, the app store, and the ipad. Blue ocean vs red ocean strategies 6 major differences red bull case study. The authors discuss the benefits for business owners to leave the red ocean. The impacts of a shift from red ocean to blue ocean on the creation and practice of a business strategy. For example, competing factors in blue ocean strategy are similar to the definition of finite and infinite dimensions in funky business. Blue ocean strategy is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. Many companies invest millions of dollars on research and development. As always, i will be using lots of examples and conclude the topic with an indepth example centring around uber and the ridehailing industry.
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. The key goals of the blue ocean strategy are finding the right marketing opportunity and making the competition irrelevant. Further blue oceans include the tablet with apples ipad, cloud computing services, and mobile phones. Next up is the uniquely brilliant example of cirque du soleil, the legendary entertainment company that performs in over 300 cities for more than 150 million spectators in a world where circuses are dying down to slow extinction. Value innovation strategy competes in an uncontested market space. For more information on our apple case and access the teaching. At the end, you will have understood not only the five forces but also many other crucial strategy concepts. Blue ocean strategy of apple from ipod to ipad presented by manu balaji kowshik mayur. Click the link above or the picture below to read more.
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. Companies pursue blue ocean strategies to make competition irrelevant. How to create uncontested market space and make the competition irrelevant, a book by professors w. Importance of the blue ocean strategy to a business bizfluent. Apples ipod is the prime example of a product that is a. Blue ocean strategy how to create uncontested market space and make the competition irrelevant facilitators. Unsubscribe from insead blue ocean strategy institute. In 2003, apple encompassed digital music and introduced itunes. Download excellent presentation slides on blue ocean strategy and digital marketing strategy. They thus became a publicly maligned symbol of excess. Blue ocean strategy is where a company creates a completely new market space or market category. A blue ocean strategy involves creating a new, untapped market rather than competing with rivals in an existing market kim, 2004. There are two ways we can create a blue ocean strategy. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy.
Companies have been fighting to get a competitive advantage over each other in terms of profitable growth, market share and product. The best example of blue ocean strategy that i know of is that of apple launching the iphone. Blue ocean vs red ocean strategies 6 major differences. In the 1890s, the horse and buggy was the primary mode of transportation. Canon copier industry case study blue ocean strategy example. Jul 28, 2017 how apples corporate strategy drove high growth. Blue ocean strategy is a book by harvard university press that states that instead of fighting for space in the already crowded sectors buisnesses, one must invent new domains categories, so that profits are maintained with minimum overheads. It requires the right research, patience and focus. Chan kim and renee mauborgne, develops and explains how to beat the competition by reaching beyond it into new unexplored markets. Blue ocean strategy this new thinking makes it possible for innovative entrepreneurs to increase their chances for success and the ext. 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. The concept of blue ocean strategy first took the business world by storm in 2005 when authors w.
The key to a successful blue ocean strategy is finding the right market opportunity and making the competition irrelevant. When we think of competition between companies like coke and pepsi or walmart and costco, we think of competitors fighting to get the biggest share of. Blue ocean strategy implementation ikeas competitive strategy is blue ocean strategy, which led ikea create leading position in local furniture industry. Blue ocean strategy example apple ipod blue ocean strategy example cirque du soleil. While most of us prefer the competition in red oceans, so far apple. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades. But many companies have done their homework and succeeded thanks to this strategy. Identify blue oceans by mapping your product portfolio. Chan kim and renee mauborgne in their book titled blue ocean strategy. 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 sea without competitors. 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. A company will have more success, fewer risks, and increased profits in a blue ocean market. Canons strategic move, which created the personal desktop copier industry, is a classic example of blue ocean strategy. In a similar fashion, a pathbreaking strategy, known as blue ocean strategy, was introduced by w.
This case introduces the application of blue ocean strategy in the context of managing a business portfolio at the corporate level. What are some successful examples of blue ocean strategy. Nov 22, 2017 nonetheless, understanding the success of iconic products such as the ipod and the iphone requires an appreciation of the overall business strategy of apple. Oct 07, 2018 blue ocean shift is packed with realworld examples of organizations facing the same constraints we all face be they politics, bureaucracy, or limited resources that applied the very tools and process outlined in the book to shift from competi. How to create uncontested market space and make the competition irrelevant at. With the launch of itunes, apple unlocked a blue ocean of new market space in digital music that it has. How to create uncontested market space and make the competition irrelevant, is very informative. Summary of the first four chapters of the international bestseller blue ocean strategy. Blue ocean strategy this new thinking makes it possible for innovative entrepreneurs to increase their chances for. May 14, 2006 blue ocean strategy is a book by harvard university press that states that instead of fighting for space in the already crowded sectors buisnesses, one must invent new domains categories, so that profits are maintained with minimum overheads. Chan kim and renee mauborgne in their book blue ocean. How apples corporate strategy drove high growth youtube. With apples innovation factory, it is sure to come up with new ideas and trends that people from around the globe will patronize.
Earlier compact disks or cds were used as a traditional. Apr 03, 2010 blue ocean strategy summary and examples 1. How to create uncontested market space and the make. To understand red ocean strategy let us begin by defining blue ocean strategy. May 11, 2019 blue ocean strategy is an approach that challenges everything that you thought you knew about the requirements for entrepreneurial success. In this article you will learn how to make your competition irrelevant and have sales and profit. Jul 17, 2018 implementing the blue ocean strategy is, simply put, a gargantuan task. The authors use the metaphor of the blue ocean as a direct contrast to red oceans. Apr 02, 2015 surface 3 and apple watch red oceans v blue oceans strategy. I am doing some research on bos it would be great if you experts here can give me examples of different companies who have used this strategy. Download it once and read it on your kindle device, pc, phones or tablets. Lets understand blue ocean strategy with the help of an example. However, the price competition only results in a red.
Ron johnson hired as ceo he previously led apples retail stores attempted a strategic change from cost leadership to a blue ocean strategy many changes implemented. In 1893, the duryea brothers created the first automobile. This happened, for example, when apple created its itunes music download service in 2003. Blue ocean strategy powerpoint templates present better. Apple ventured into digital music in 2003 with its product itunes. Ignition framework the innovative manager home page. The rapid pace of innovation and change in recent years has led scholars and executives to search for an approach to strategy that is more dynamic than harvard professor michael porters classic five forces. Insead blue ocean strategy offers a new perspective on strategy formulation and execution. One example of the blue ocean strategy that is given by the authors themselves in their book is the cirque du soleil and its amazing success. The bluest ocean strategy for emerging ict business.
Is ipad a classic case of a successful blue ocean strategy. Traditional copy machine manufacturers targeted office purchasing managers, who wanted machines that were large, durable, fast, and required minimal maintenance. In a way mobilink is an example of blue ocean strategy but then again isnt every. While there are many parameters that should be considered for the xaxis, the nature of ipad is. This article provides a concise analysis and discussion of several critical strategies employed by the cupertinobased company. Specifically, these new markets give a company a very high competitive advantage as well as low pricecost pressure. Apple users can download legal and high quality music at a reasonable price from itunes making traditional sources of distribution of music irrelevant.
Blue ocean strategy including examples and pdf download. The risks of following a blue ocean strategy the adaptive. Strategy becomes an organizations way offorecasting and predicting the. Blue ocean strategy is a marketing theory in which a business enters a market that has little or no competition. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Ikea has been successful in nanjing by implementing a blue ocean strategy that is crucially supported by good value innovation.