4 action framework blue ocean strategy book pdf

Blue ocean strategy continues to grow in popularity across the world and is widely used in practice and in mba and executive education classrooms. Table 22 the four actions framework using the example of the. Chan kim and renee mauborgne in their book titled blue ocean strategy. The bos offers users a framework for creating uncontested market place. 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. Red ocean vs blue ocean strategy differentiation or low cost differentiation and low cost. Based on an eponymously titled book, this strategy argues that cutthroat. Blue ocean strategy page 1 main idea the best way to beat your competition is, in fact, to stop competing against them. On the other hand, there is not really an analytic framework to create blue oceans and principles to. What is the four actions framework and why it matters in. Jul 17, 2018 implementing the blue ocean strategy is, simply put, a gargantuan task. 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. 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.

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. Download blue ocean strategy summary in pdf infographic, text and audio formats. Four actions framework template blue ocean framework miro. Blue ocean strategy doesnt aim to outperform the competition. Effective blue ocean strategy should be about risk minimization and not risk taking. Use our free blue ocean 4 actions framework template to create, collaborate on with your. In the next section, applying the blue ocean strategy framework, we will analyze how the industry was deconstructed and reconstructed by nintendo to understand the success of the wii. Whereas conventional strategic approaches drive companies to define their industry similarly and focus on being the best within it, blue ocean strategy prompts them to break out of the accepted. The value of having a blue ocean strategy is better understood when compared to a red ocean strategy. Four actions framework blue ocean strategy shortform books. Blue ocean strategy how to create uncontested market.

The four actions framework can be employed to alter the product in a given market. The blue ocean strategy guides entrepreneurs to find a new blue ocean away from competition and wars, as is prevalent in business today. Chan kim and renee mauborgne are suggesting blue ocean strategy. 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. The famous book on bos is apparently the new must, or at least an objective to. Four actions framework of blue ocean applied to jet blue. Instead of focusing solely on the moment a customer purchases a book as the. Blue ocean strategy powerpoint templates present better. Four actions framework of blue ocean applied to jet blue 1. Kim and mauborgne have followed one blockbuster book with another. As a result productsservices become commodities and companies compete on price. The strategic edge of a blue ocean thinker insead knowledge. The evolution of blue ocean strategy vivechan international journal.

How to create uncontested market space and the make competition. Gain access to the tools to help you develop uncontested yet commerciallyviable blue ocean ideas, e. 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. Winner of the best leadership and strategy book of 2017 by 800ceoread.

Chen, information systems theory and practices red ocean vs. Kim and mauborgne, authors of blue ocean strategy advocate the blue ocean strategy, the framework can also be used to refine existing products. As ceo, ted shifted healthmedia from the red to the blue ocean, transforming the struggling company to. Summary capter 1 4 of blue ocean strategy by lauri di vino. Developing a framework for entrepreneurs to transform their. To plot the available consumer products in a marketplace against the companys ability to provide value and thus be competitive over time. In this summary, well give a synopsis of the key concepts, tools and tips from the book. 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. Chan kim, renee mauborgne, blue ocean strategy 2006 15.

This tool is the central diagnostic and action framework for building a compelling blue ocean strategy. But many companies have done their homework and succeeded thanks to this strategy. 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. Blue ocean strategy chapter 1 4 the four action framework chapter two. Table 22 the four actions framework using the example of. Blue ocean strategy 2 good understanding of how to compete skillfully in red waters from analyzing the underlying economic structure of an existing industry to choosing a strategic position of low cost, or differentiation. Keywords blue oceans, value innovation, four action framework, strategy. Four action framework eliminatereduceraisecreate example. Implementing blue ocean strategy arbor dakota strategies. Blue ocean strategy on jet blue case study by neil k. Rather than competing within the confines of the existing industry or trying to steal customers from rivals bloody or red ocean strategy w.

The blue ocean strategy offers users a framework for creating uncontested market. In other words, when you go headtohead against rivals for a share of the existing market, this is like competing in a red ocean. 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. Here is a quote from the authors of the blue ocean books. Blue ocean strategy, organizational performance, red ocean strategy. This study showed a guidance framework for entrepreneurship.

Heres the essence of blue ocean strategy captured in eight key points. Miro has multiple exporting options, like saving to p. Eight key points of blue ocean strategy insead knowledge. 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. Here are some insights you can expect to takeaway from this powerful book.

Value innovation strategy competes in an uncontested market space. Netflix blue ocean strategy by ameni kabboudi issuu. Blue ocean strategy and new business models in the food. What is the blue ocean strategy the term blue ocean was coined by two professors w. Tools and frameworks for creating and capturing blue oceans it is constructed to create a new value curve and when you apply the four actions framework to the strategy canvas of your industry, you get a. 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. Netflix customers continue to expand globally and internationally with the convenience of consuming. 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. The service also has the ability to recommend certain content or make suggestions to each user, based on previous content watched. Strategy canvas, four action framework, errc grid, pms map, buyer utility map. Here, understanding how to build trust and commitment, as. Public sector application and research, including the application of blue ocean shift, blue ocean strategy, and blue ocean leadership to governments and nonprofits. Download blue ocean strategy summary readingraphics. Nintendo wiis growing market of nonconsumers, by scott anthony, hbsp innovation insights.

A conceptual framework adapted from the blue ocean book was constructed to examine the application of the four action framework in creating the value innovation in malaysian public sector. Mar 16, 2020 a good blue ocean strategy has items in each of the four grids. 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. Chapter 3 reconstruct market boundaries the first principle of blue ocean strategy is to reconstruct market boundaries to break from the competition and create blue oceans. Reviewing the blue ocean strategy university of twente student. 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.

Companies can make proactive changes in industry or market fundamentals through the purposeful application of these blue ocean tools and frameworks which are grounded in the issues of both opportunity and risk. The four action framework points out four key actions to take into account to refine existing products. Instead of fighting headon with your competitors, learn how to create uncontested market space and render your competition irrelevant. The fouractions frameworkon blue ocean strategy to reduce, create, raise and eliminate industry practices to create a blue ocean fromthe industry red ocean. Discover how to create a quantum leap in value to buyers through value innovation. Chapter 3 effects of it on strategy and competition author. Together, they wrote a bestselling book blue ocean strategy. The four action framework a new value curve reduce which factors should be. 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 eliminatereduceraisecreate errc grid is an essential tool of blue ocean strategy developed by chan kim and renee mauborgne.

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. Chan kim and renee mauborgne to understand the strategic edge it brings, its impact on business education at insead and around the. The strategy canvas the strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. Blue ocean strategy including examples and pdf download. In chapter 2, analytical tools and frameworks 22 pages, the authors provide an overview of three tools to use with their strategic model. It explores ideas pertaining to the design and execution of a blue ocean strategy. This blog article is a overview of some of the key points of the book by w. Achieved via the delivery of features that have a highest marginal benefit to customer needs.

Pdf blue ocean strategy as a tool for improving a companys. How to create uncontested market space and make the competition irrelevant. It is a simple matrix like tool that drives companies to focus simultaneously on eliminating and reducing, as well as raising and creating while unlocking a new blue ocean. Chapter 3 effects of it on strategy and competition. Bos four actions framework errc grid innovating now. Cirque du soleil is one of those examples they used to show the relevance of blue ocean strategy. The books that changed the way we think about strategy blue ocean strategy and blue ocean shift. Strategy, strategic changes, blue ocean strategy, value innovation, four action framework. Weve explored the fundamentals of blue ocean strategy before. The 4 actions framework is a strategic tool used to reconstruct customer value elements. Red ocean strategy blue ocean strategy competitive advantage value innovation. Were proud to have ted dackos application of the blue ocean process featured in our book blue ocean shift. 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.

To illustrate their ideas, chan kim and mauborgne used several reallife examples in their book. About the blue ocean 4 actions framework template who created blue ocean 4 actions template. Blue ocean four action framework 3 strategy canvas european union funds erdf this work by the digitrans project is licensed under the creative commons attribution sharealike 4. It aims to make the competition irrelevant by reconstructing industry boundaries. First and foremost on their list is a tool used to break out of competition and make competition irrelevant called the strategy canvas. Blue ocean strategy how to create uncontested market space. Eliminate which of the factors that the industry takes for granted. What are the factors, which your industry takes for granted, but should be eliminated. 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. On the other hand, there is not really an analytic framework to create blue. Developing a framework for entrepreneurs to transform. Learn why finding and developing blue ocean markets is your organizations best chance for growth and profitability. The four action framework a new value curve reduce which factors should be reduced well below the industrys standard.

Pdf on apr 1, 2012, ibrahim rawabdeh published blue ocean strategy as a tool for. Social sector application and research, including such topics as how blue ocean strategy can be applied in the developing world to mitigate poverty and improve education and health. The four actions framework guide your student life with. Feb 19, 2018 2 understanding the blue ocean strategy, 3 how to apply the blue ocean strategy to your business, and 4 examples. In red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. Blue ocean 4 actions framework canvas canvas generation. 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.