The database and research have continued to expand. The books that changed the way we think about strategy blue ocean strategy and blue ocean shift. Discover how to create a quantum leap in value to buyers through value innovation. Sep 16, 2010 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. Gain access to the tools to help you develop uncontested yet commerciallyviable blue ocean ideas, e. Were proud to have ted dackos application of the blue ocean process featured in our book blue ocean shift. The strategy canvasthe strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. Blue ocean 4 actions framework canvas canvas generation. 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 industrys strategic logic.
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. In this summary, well give a synopsis of the key concepts, tools and tips from the book. The four actions framework once the value curve has been established, the four actions framework can be employed to alter the product in a given market. The strategy canvas is a central diagnostic tool and an action framework of blue ocean. Mar 16, 2020 a good blue ocean strategy has items in each of the four grids. Here is a quote from the authors of the blue ocean books. To illustrate their ideas, chan kim and mauborgne used several reallife examples in their book. Cirques four actions framework of their blue ocean strategy.
This study focuses on kim and mauborgne four action framework tool of blue ocean strategy implemented by indian companies in the last two decades by maximizing. Blue ocean four actions framework for value creation 16. Red ocean strategy blue ocean strategy tools strategy canvas and four action framework six principles of blue ocean strategy. The article analyzes the value innovation of red collar group in shandong province based on the perspective of blue ocean strategy, using the four actions framework and the strategy canvas as the analysis tools to study the business model of red collar group. To implement this grid, it is essential first to clearly understand how other competitors contribute in the market to determine the main competing factors. 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 profile, which is essential to unlocking a new blue ocean. Chen, information systems theory and practices red ocean vs. But many companies have done their homework and succeeded thanks to this strategy. It graphically captures, in one simple picture, the current strategic.
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. Red ocean strategy blue ocean strategy competitive advantage value innovation. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. In red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. Value innovation strategy canvas four actions framework six paths. What is blue ocean strategy and how does it help your business. The web site for this book is at blue ocean strategy page 1 main idea the best way to beat your competition is, in fact, to stop competing against them.
The four action framework a new value curve reduce which factors should be. The strategy canvas the strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. Eliminate which of the factors that the industry takes for granted. Blue ocean strategy is a book published in 2004 written by w. Developing a framework for entrepreneurs to transform their. Framework tool of blue ocean strategy implemented by indian companies in the last two decades by maximizing opportunities, minimizing risks, lowering the price and adding more value thereby carving a niche in the market. First of all, in this chapter i will focus on the background knowledge of my thesis which i. This sector is very different from other sectors in that its growth does not originate from the sectorial growths which we notice for. Remember what the product that company delivers is all about. By the definition blue ocean strategy, four actions framework is an analysis, which focuses on creating val.
Value innovation strategy competes in an uncontested market space. Cirques four actions framework of their blue ocean strategy is as follows. 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 value innovation strategy canvas four actions. May 14, 2011 the blue ocean strategy four actions framework also called eliminate reduce raise create grid errc grid is a complementary tool to the strategy canvas. Netflix blue ocean strategy by ameni kabboudi issuu.
This case is about creating a blue ocean in the overlapping zones of the computer and internet services retail market and a growing elearning market. The horizontal axis captures the range of factors that the industry competes on and invests in, while the vertical axis captures the offering level that. Blue ocean strategy is a book published in 2005 and written by w. As ceo, ted shifted healthmedia from the red to the blue ocean, transforming the struggling company to.
With the four actions framework proposed by blue ocean strategy authors, air asia have implemented many strategic moves to ensure they are making malaysia airline and regional airline company irrelevant. Specialize in streaming media and video on demand through internet or dvds. Four actions framework blue ocean strategy shortform books. Key words blue ocean strategy, case study, itunes, netflix, strategy, ten schools of strategy. 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. Chan kim and renee mauborgne in their book titled blue ocean strategy. In a similar way, the book blue ocean strategy how to create uncontested market space and make the competition irrelevant. Chapter 3 effects of it on strategy and competition. Blue ocean strategy powerpoint templates present better. First of all, in this chapter i will focus on the background knowledge of my thesis which is the book.
The four action framework a new value curve reduce which factors should be reduced well below the industrys standard. Ocean, one needs to take into consideration the four actions framework to. What are the factors, which your industry takes for granted, but should be eliminated. It is built based on our strategy practices in the field with. Developing a framework for entrepreneurs to transform. How to create uncontested market space and the make competition. The four step process is designed around the concepts and analytic tools of blue ocean strategy and fair process. 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 action. May 27, 2015 for the last ten years, blue ocean strategy has challenged business leaders to explore uncontested marketplaces or what we call blue oceans. 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. Four action framework eliminatereduceraisecreate example. The company reduced the general feel of a circus, the risks that were involved in doing any act and too much fun. Download file pdf the blue ocean strategy in insurance industry case study.
Location independent manufacturing, blue ocean strategy. The 4 actions framework is a strategic tool used to reconstruct customer value elements. Humanness provides your employees a sense of trust in the blue ocean strategy as an instrument for taking your company to new and exciting places. The fouractions frameworkon blue ocean strategy to reduce, create, raise and eliminate industry practices to create a blue ocean fromthe industry red ocean. Mar 15, 2014 four actions framework of blue ocean applied to jet blue 1. It provides guidelines to identify new competing factors and therefore be more creative during later phases of innovation and design a new buyer value curve. They are professors of strategy at insead, one of the worlds top business schools, and codirectors of the insead blue ocean strategy institute in fontainebleau, france. Strategy, strategic changes, blue ocean strategy, value innovation, four action framework. Aug 11, 2019 the blue ocean strategy proposes the four actions framework, which asks four key questions to challenge an industrys strategic logic and business model. As a result productsservices become commodities and companies compete on price. Four actions framework of blue ocean applied to jet blue. Value innovation is created in the region where a companys actions favorably affect both.
Blue ocean strategy presents a systematic approach to making the competition irrelevant and outlines principles and tools any organization can use to create and capture their own blue oceans. What is the blue ocean strategy the term blue ocean was coined by two professors w. Jul 17, 2018 implementing the blue ocean strategy is, simply put, a gargantuan task. Chapter 3 effects of it on strategy and competition author. After reading this book i tried to analyse this for the perspective of agriculture sector. Four action framework sheehan and vaidyanathan, 2009. Chan kim and renee mauborgne is used to reconstruct buyer value elements in crafting a new value curve or strategic profile. Blue ocean strategy and new business models in the food. Cirque eliminated the use of animals, the three ring circus experience and the star performers. Blue ocean strategy on jet blue case study by neil k. Achieved via the delivery of features that have a highest marginal benefit to customer needs. This tool is the central diagnostic and action framework for building a compelling blue ocean strategy. Public sector application and research, including the application of blue ocean shift, blue ocean strategy, and blue ocean leadership to governments and nonprofits.
Red ocean vs blue ocean strategy differentiation or low cost differentiation and low cost. It explores ideas pertaining to the design and execution of a blue ocean strategy. Cirque du soleil is one of those examples they used to show the relevance of blue ocean strategy. Creating blue oceans cirque du soleil created uncontested new market space that made the competition irrelevant. Here are some insights you can expect to takeaway from this powerful book. This blog article is a overview of some of the key points of the book by w. Once the value curve has been established, the four actions framework can be employed to alter the product in a given market. What is the value curve model and the four actions framework. Blue ocean strategy ppt by a div strategic management. From the starting line, making a blue ocean shift can be daunting. The blue ocean strategy in insurance industry case study nacfe. May 31, 2016 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. To make humanness happen in your blue ocean strategy, there are 3 elements needed the first is atomization. These frameworks and tools are designed to be visual in order to not only effectively build the collective wisdom of the company but also to effectively execute a strategy through.
Kim and mauborgne, authors of blue ocean strategy advocate the blue ocean strategy, the framework can also be used to refine existing products. How to create uncontested market space and make the competition irrelevant. Remember that blue ocean strategy creates new market spaces, creates new demand, and leads to profitable growth. Kim and mauborgne, authors of blue ocean strategy advocate the blue ocean strategy, the framework can also be used to refine existing products in pursuit of these goals, there are four points that all businesses must consider. Pdf on apr 1, 2012, ibrahim rawabdeh published blue ocean strategy as a tool for improving a companys. Together, they wrote a bestselling book blue ocean strategy. Kim and mauborgne have followed one blockbuster book with another. Four actions framework but also to act on all four to create a new value curve, which is essential to unlocking a new blue ocean. Blue ocean strategy, a bestselling strategy book based on a study of 150. The key factors used in the strategic canvas, such as price, performance or unique. The service also has the ability to recommend certain content or make suggestions to each user, based on previous content watched. What is the four actions framework and why it matters in.
The four actions framework guide your student life with. About the blue ocean 4 actions framework template who created blue ocean 4 actions template. In other words, a blue ocean is a new, uncontested market space where the existing competition is. Blue ocean strategy is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. Here, the market structure is yet to be decided, so the price competition is far less intense. Strategy canvas, four action framework, errc grid, pms map, buyer utility map. Eight key points of blue ocean strategy insead knowledge. This analytic tool complements the four actions framework. The value of having a blue ocean strategy is better understood when compared to a red ocean strategy. Blue ocean strategy including examples and pdf download.
Four actions framework template blue ocean framework miro. Netflix and the blue ocean strategy tyler connell summary netflix is one of the largest multinational entertainment companies and has 94 million subscribers in 190 countries. Blue ocean shift takes the groundbreaking principles of their original work and offers a smart, systematic plan to help any organization move from competing in existing markets to creating new markets altogether. The four actions framework and errc grid tweet after you define the three tiers of non customers, the idea is that you poll these noncustomers and find out what it would take to purchase your product or service.
Pdf blue ocean strategy as a tool for improving a companys. Effective blue ocean strategy should be about risk minimization and not risk taking. Bos four actions framework errc grid innovating now. Chan kim, renee mauborgne, blue ocean strategy 2006 15. Eliminate 4 action create framewor raise k reduce figure 3 strategy canvas the strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. In a blue ocean you change the playing field of strategy. Chan kim and renee mauborgne was first published in 2005. That is why i used books, thesis, surveys, organizational records and data collected. Blue ocean strategy formulation the four principles of.
Kim and mauborgne have been researching what it takes to break out of the red ocean of competition and generate strong profitable growth for over 30 years. First and foremost on their list is a tool used to break out of competition and make competition irrelevant called the strategy canvas. While kim and mauborgne advocate the blue ocean strategy, the framework can also be used to refine existing products. 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. Here, understanding how to build trust and commitment, as. 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 page 1 main idea the best way to beat your competition is, in fact, to stop competing against them. In other words, when you go headtohead against rivals for a share of the existing market, this is like competing in a red ocean. The blue ocean strategy guides entrepreneurs to find a new blue ocean away from competition and wars, as is prevalent in business today. It is a way to study the market from competitors points of view, determine the competing factors, recognize competitors aspects and then create the differentiation toward a new blue ocean.
First, it captures the current state of play in the known market space. 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. Winner of the best leadership and strategy book of 2017 by 800ceoread. Healthcares blue ocean strategy for blockchain cio. Blue ocean strategy for agriculture sector digital. Table 22 the four actions framework using the example of. The results were most extensively covered in the book blue ocean. The four actions framework can be employed to alter the product in a given market. A good blue ocean strategy has items in each of the four grids. Download blue ocean strategy summary readingraphics.
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