Get The Strategic Sequence Right is the fourth principle. Build Execution Into Strategy is the sixth principle.
Chan Kim and Renee Mauborgne agree that to find a blue ocean is not an easy task. Overcome key organizational hurdles vi. Successful execution of the blue ocean can only be achieved when all internal departmental differences is resolved.
Traditional approaches to competitive strategies are highly influenced by Michael E. Kim and Mauborgne point out that to execute the blue ocean strategy successfully, the managers need to overcome the four 4 organizational hurdles that are very challenging.
If it does, then the theory is not fully grounded. Reconstruct Market Boundaries is the first principle. The book does not make case studies or make any deduction on companies that execute blue ocean strategy but fail.
One of the reasons why the authors have used the colours red and blue is to describe the market. After reading the book, I can summarize the idea behind the Blue Ocean Strategy in two main statements which are: Kim and Mauborgne describe in detail the strategic sequence of validating the blue ocean ideas.
Reach beyond existing demand iv. To successfully operate in a red ocean, it is important for companies to conduct competitor analysis to allow them to stay updated on what their competitors are doing and what they are planning to do.
The National Blue Ocean Strategy NBOS was developed with the intention to motivate the economic growth and happiness simultaneously through the multiplication of resources and the reconstruction of borders, while lowering taxes for people.
Kim and Mauborgne explains in an interview that when market spaces become crowded with competitors, companies try out perform each other and profits and growth is greatly reduced due to cutthroat style competition which turns the red ocean bloody.
In this review I extract some of the concepts narrated by Kim and Mauborgne. It earned billions and created a blue ocean.
In the book Kim and Mauborgne only elaborate on the blue ocean strategic thinking based on many successful industries. The tradition theory to competing in existing market space is focused on building your company through analysing competitors.
In the red ocean where competition is based on price and quality, being a first mover is an important advantage because by being flexible a company can adjust easily to external changes such as customer demands and trends.
Kim and Mauborgne argue that companies that remain in the area where many industries are competing with each other and always make improvements on the products and services to gain greater share from the customers, will be unable to sustain in the market for long unless they opt to plunge into blue oceans.
Red ocean is the market space where industry boundaries are defined and known. But in this book, the authors explain how to systematically create and capture blue oceans. I think this is also the reason why the red ocean is so bloody because similar products and services have been refined and replicated over and over again with low cost, it has caused companies to be afraid to look into new options and therefore in a constant battle to fight for market share by cutting profit margins lower and lower.
These ideas are fine to me, and I like it. Focus on the big picture, not the numbers iii.
The analogy of a blue ocean can be associated with profitability and growth being "vast", "deep" and "powerful". This principle addresses business model risk. This is to open up a blue ocean.
Reconstruct market boundaries ii. Cirque du Soleil created a new market space, by blending opera and ballet with the circus format while eliminating star performers and animals.
Chan Kim and Renee Mauborgne had researched more than fifteen 15 years, spanned from more than a hundred years of data and reviewed a series of Harvard Business Review articles.The National Blue Ocean Strategy (NBOS) was developed with the intention to motivate the economic growth and happiness simultaneously through the multiplication of resources and the reconstruction of borders, while lowering taxes for people.
The impacts of a shift from Red Ocean to Blue Ocean on the creation and practice of a business strategy It is not by chance that companies transfer from Red Ocean to Blue Ocean strategy.
There are some driving reasons that stimulate the creation of blue oceans. Strategy military it’s about fighting over a piece of land that is fixed and constant. The gain of one army comes at the expense of the other one.
0 sum game, win and loss. Eliminate what wasn’t important to the buyers, not the customers Blue Ocean Strategy Essay. Blue Ocean Strategy MKT/ Blue Ocean Strategy Marketing consists of. Blue Ocean Strategy by W. Chan Kim and Renee Mauborgne is a strategy that challenges companies to distance itself away from fierce competition by establishing uncontested market space that makes existing competition irrelevant.
Free Essay: Blue Ocean Strategy Paper Adel Erolsky University of Phoenix MKT/ Ron Rosalik August 25, Blue Ocean Strategy Paper In today’s business. BLUE OCEAN STRATEGY, IS IT RELEVANT TO THE ARMY?
Reference: A. Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant / W. Chan Kim, Renée Mauborgne.
INTRODUCTION 1. Blue Ocean Strategy is a business strategy book first published inand written by Chan Kim who is The Boston Consulting Group Bruce D. Henderson Chair Professor of strategy .Download