This strategy makes the competitors irrelevant and the main driver of the companys profits are the decreased costs. The key theme in this article is that when businesses are faced with a choice of battling competition in saturated markets or creating an entirely new market. Blue ocean strategy formulation the four principles of. Plotting your buyer utility map amazon web services. Chan kim is co director of the insead blue ocean strategy institute and the boston consulting group bruce d. The buyer utility canvas highlights the 6 key utility levers felt by customer across the 8 stages of the buyer experience cycle from the productservice you offer. For a blue ocean strategy to work the product must have an exceptional user utility, accessible price, a healthy cost structure and a minimum adoption. Based on a study of 150 strategic moves spanning more than 100 years across 30 industries, the authors argue that lasting success comes not from battling competitors but from creating blue oceansuntapped new market spaces ripe for growth. The buyer utility map is a 6 by 6 matrix which identifies both stages of the buyer experience and the six utility levers that can be used to develop your messaging and strategy.
In this way, it swam into a blue ocean, offering a plastic watch at a price that allowed people to purchase two or three watches at one time. Research showed that the following six assumptions keep companies trapped in creating red oceans. Written by the business worlds new gurus, blue ocean strategy continues to challenge everything you thought you knew about competing in todays crowded market place. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of. Environmental friendliness these 6 can be pulled in the various stages of the buyer experience cycle. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w.
This blog article is a overview of some of the key points of the book by w. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. It is designed to uncover hidden opportunities to create blue oceans of new market space and to test if your offering creates exceptional buyer utility. Blue ocean strategy blue ocean strategy introduction blue ocean strategy is a marketing book by w.
Simply stated, business has just two functions, innovation and marketing. How to create uncontested market space and make the competition irrelevant by w. Blue ocean strategy powerpoint templates present better. 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. Sep 26, 2016 the strategy canvas provides a highly visual tool to help look at future options. Blue ocean strategy challenges companies to break out of the red ocean of bloody competition by creating uncontested market space that makes the competition irrelevant. The thinking that took place to move through visualization, the four actions, and the errc grid is manifest in the strategy canvas. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. Alternatively, a market filled with competitors was likened to an ocean red with the blood of vicious competitors, hence it was called a red ocean. Fournier in blue ocean strategy, the buyer utility map is a chart that shows the six buy utility levers. All in all, blue ocean strategy is a book worth reading.
However, to get a good, full grasp on the landscape requires the occasional reversal of. Henderson chair professor of strategy and international management at instead, france the worlds second largest business school. While this came in appendix a in the book, this is a good time to cover three industries with repeated blue ocean creation. To create a blue ocean strategy company there has to be. Mar 09, 2012 revealing the idea of blue ocean strategy, renee mauborgne shares the secret for how to create uncontested market space and make the competition irrelevant. Blue ocean strategy buyer utility map for ios free. A company will have more success, fewer risks, and increased profits in a blue ocean market. In this article you will learn how to make your competition irrelevant and have sales and profit. It is very important that each component of the sequence be in the same order as listed in order to successfully create a blue ocean for any company. This article discusses the blue ocean strategy s buyer utility map, and shows how it can help managers identify and unlock the different levers of buyer utility to break away from the competition and create new market space. Prior to joining insead, he was a professor at the university of michigan business school, usa.
It outlines all the levers companies can pull to deliver utility to buyers as well as the different experiences buyers can have of a product or service. The book succeeds in showing how businesses, can outdo their competitors. Finding a business without competitors in a blue ocean market is a key to huge growth. The buyer utility map is a 6 by 6 matrix which identifies both stages of the buyer experience and the six utility levers that. Chan kim and rene mauborgne, is an analytic tool of blue ocean strategy. Through this discussion of blue ocean strategy, weve taken a look at the business landscape primarily through the eyes of the entrepreneur, the person actually creating the product. 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. While the book is aimed primarily at large, traditional businesses, our book club members managed to scale some of the advice to fit our needs. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. You may or may not agree with the central philosophy, but you will be inspired. Chan kim and renee mauborgne the theory is pledging for the creation of a new market space, the blue ocean, as a main technique for the realization of a significant and profitable growth of the company. Blue ocean strategy helps companies find unmet needs and add value in innovative ways. Now youve researched and vetted possible blue ocean strategies, youve batched the common pain points of noncustomers, and youre ready to figure out how to execute the strategy. Buyer utility map blue ocean strategy shortform blog.
In their 2017 new york times bestselling book, blue ocean shift, kim and mauborgne share how to put these practical marketcreating tools into practice to move from red to blue oceans and to do so in a way that people own and drive the process. This template enables managers and executives to create a detailed and comprehensible blue ocean strategy. All the tools you need to support the development of your blue ocean strategy. Companies need to build their blue ocean strategy in the sequence of buyer utility, price, cost, and adoption. To join the free indie business book club, click here. 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.
View notes blue ocean strategies summary from mgmt 430 at university of washington. This templates provides iconography and diagrams to work with the blue ocean strategy tools. 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. This article explains what the blue ocean strategy is and how it can become a game changer for businesses stuck in stagnating markets. Perhaps one of the most thoughtprovoking facets of blue ocean strategy is the fact that through research, analytics and realworld examples, kim and mauborgne effectively debunk the notion that new markets are created by new technology.
Each industry underwent continuous upheaval, each time spurred by a blue ocean strategy that 1 reduced factors unimportant to buyers, 2 increased factors important to buyers, 3 expanded the market. Blue ocean strategies a summary blue ocean strategy is a business strategy book first published in 2005 and. Buyer utility map this framework from blue ocean strategy link outlines on one axis the stages in a buyers experience cycle, and on the other axis a variety of utility levers. Buy blue ocean strategy book online at low prices in india. Blue ocean strategy can be applied across sectors or businesses.
May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. One of the most effective tools in the blue ocean sift book is the buyer utility map. How to create uncontested market space and make the competition irrelevant, w. The buyer utlity canvas is a core strategic tool used in blue ocean strategy. Blue ocean strategy presents a systematic approach to making the competition irrelevant and outlines. Chan kim and renee mauborgne 2006 blue ocean strategy has been described as a must read for all business students. Blue ocean strategy buyer experience cycle buyer utility map the buyer utility map helps to get managers thinking from the right perspective. Chan kim and renee mauborgne, helps to get managers thinking from a demandside perspective. Each tool has a slide for the description and application within the strategy analysis. Over 150 slides and 6 spreadsheets to design your every step of the project, plus a. Chan kim and renee mauborgne derive a novel business strategy and tools based on data from over 30 industries spanning more than 100 years. To make your life easier, you can download these free templates that have been. This allows them to build a viable business model and ensure that a company profits from the blue ocean it is creating.
Blue ocean strategy business model blue ocean tools and. May 02, 2018 the blue ocean strategy represents a theory concerning the business strategy created by two professors namely w. Value innovation strategy competes in an uncontested market space. Chan kim and renee mauborgne, professors at insead.
Trying to copy what another company is doing is not strategy. Chan kim and renee mauborgne, published by harvard business school press, boston, massachusetts, 2005, isbn 97815996192 blue ocean strategy is a business strategy book, first published on february 3, 2005. The book mostly borrows from a range of over 140 strategic marketing moves within a period of over a century. Blue ocean strategy overview texas tech university. Blue ocean idea index the blue ocean idea index is a simple but robust test demonstrating how the sequence of utility, price, cost, and adoption form an integral whole to ensure commercial success through blue ocean strategy. Fair process and blue ocean strategy commitment, trust, and voluntary cooperation are not merely attitudes or behaviors. Blue ocean strategy buyer utility map on the app store. The book suggests you complete a buyer utility map at this step and confirm that the second step is price, is the price a good value to the purchaser.
Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Blue ocean strategy can be found on amazon blue ocean strategy. Strategy canvas the strategy canvas is a central diagnostic tool and an action framework developed by w. Now that youve done the hard work of identifying your blue ocean strategy, its time to present it to top management. Tonight, well be taking a more detailed look at the customers. Using the blue ocean buyer utility map arbor dakota. Often times, new markets are creating by finding new uses and markets for existing technology. The buyer utility map helps to get you think from a demandside.
Imitation may be a form of flattery, but it is a poor substitute for the kind of supply chain management needed for blue ocean strategy. How to create uncontested market space and make the competition irrelevant from the worlds largest community of rea. This template is licensed under the creative commons attributionshare alike 4. The four principles to of blue ocean strategy formulation. Before we dive into the buyer utility map, lets understand how it fits into blue ocean strategy. It graphically captures, in one simple picture, the current strategic landscape and the future prospects for a company.
Blue ocean strategies summary blue ocean strategies a. Over 4 million copies sold wall street journal and businessweek bestseller recognized as one of the most iconic and impactful strategy books ever written the global phenomenon that has sold over 4 million copies, is published in a recordbreaking 46 languages and is a bestseller across five continentsnow. It is designed to uncover hidden opportunities to create blue oceans of new market. Provides a systematic approach to making the competition irrelevant. Here are my 5 best tools to find your own blue ocean strategy. His book blue ocean strategy, coauthored with renee mauborgne, has sold 3. Blue ocean strategy powerpoint template slidemodel. Blue ocean strategy comes from the book with the same name, which used an analogy comparing competitionless business to a clear blue ocean. This results in not fully developing your blue ocean strategy correctly. Nov 14, 2008 a structured process of visual awakening, exploration, strategy fair and communication pushes a companys strategy towards blue ocean.
May 30, 2017 it reduced costs by using plastic instead of metal, for example, and reducing the parts in each watch from 150 to 50. Blue ocean strategy, create new markets and leave the. It is being published in a recordbreaking 44 languages and is a w. Pioneermigratorsettler map portfolio mapping blue ocean. Blue ocean strategy is a business marketing strategy of creating a new market space for its services and products.
In blue ocean strategy, the buyer utility map is a chart that shows the six buy utility levers. 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. Blue ocean strategy powerpoint template is a professional and modern presentation for the description or explanation of the blue ocean strategy theory. A lot has been written about it and i would have said practically everything had been said about it until i looked up the book on amazon to see the current price. It also helps managers test whether their business or productservice unwittingly blocks buyer utility across the totality of the buyers experience. What a company will do if it adopts a blue ocean strategy skills practiced making connections use understanding of the concept of a blue ocean strategy to identify its effects on a business. The powerpoint slide features a blue ocean utility map tool, which may be used to show the interrelationship of the six stages of buyer experience and the six utility levels of the products and services offered by a specific company the slide design contains a table, which have the stages of buyer experience for column headers namely, purchase, delivery, use, supplements, maintenance.
But, lets first understand what is blue ocean and how it is different from red ocean strategy. The expanded edition of blue ocean strategy, is metaphorical, witty, and almost biblical in its commentary of the bloody waters of competitive red ocean market forces. Chan kim and renee mauborgne in the indie business book club. Blue ocean strategy and its implications for businesses. Its a useful read for marketers looking for innovative ways to approach business. I wish i could say my own pursuit of enlightenment led me to chan kim and renee mauborgnes masterpiece on embracing and leveraging difference. Blue ocean buyer utility map tool the powerpoint slide features a blue ocean utility map tool, which may be used to show the interrelationship of the six stages of buyer experience and the six utility levels of the products and services offered by a specific company. Reviewed by special k, etmg writer and blogger in their bestselling book, blue ocean strategy. In their 2017 new york times bestselling book, blue ocean shift, kim and mauborgne share how to put these practical marketcreating tools into practice to move from red to. How to create uncontested market space and make the competition irrelevant, a book by professors w. Evaluating a blue ocean strategy a buyer utility map 1485 words 6 pages according to kim and mauborgne 2005, when formulating a blue ocean strategy a buyer utility map can help managers obtain the proper perspective of their product or services utility to its buyers p. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Challenging everything you thought you knew about strategic success. They assert that these strategic moves create a leap in value for the company, its buyers, and its employees while unlocking new demand and making the competition irrelevant.
Essay on blue ocean strategy a marketing book 1053 words. Getting the strategy sequence right is very important. Blue ocean strategy and new business models in the food. However, to get a good, full grasp on the landscape requires the occasional reversal of perspective. As trained blue ocean practitioners with over 350 workshops and dozens of client engagements under our belts. But only the seasoned managers understand the complexity behind this simplicity. Evaluating a blue ocean strategy a buyer utility map. Blue ocean strategy bos is an exciting and highly practical concept, system and business discipline that emerged around 2005 from the work of w chan kim and renee mauborgne. Mar 04, 2015 i am a big fan of kim and mauborgnes blue ocean strategy. Blue ocean strategy glossary buyer utility map buyer utility map is a tool that helps managers test whether their business or productservice offers a leap in value to buyers.
This article uses examples from the real world to discuss the specifics of the blue ocean strategy. Buyer utility map help managers break the utility for their consumers and generate innovative ideas 3. Feb 11, 2012 through this discussion of blue ocean strategy, weve taken a look at the business landscape primarily through the eyes of the entrepreneur, the person actually creating the product. It outlines all the levers companies can pull to deliver exceptional utility to buyers as well as the various experiences buyers can have with a product or service. Do you have a blue ocean sales and marketing strategy. The blue ocean strategy canvas is a diagnostic tool and a framework for action that helps market researchers ask the right questions for supporting the development of a competitive strategy. In this post, i will provide the list of blue ocean strategy tools any organization can apply to create new market spaces and make the competition irrelevant. Blue ocean strategy including examples and pdf download. Chan kim and renee mauborgne have created a comprehensive set of analytic tools and frameworks to create blue oceans of new market space. Home blue ocean strategy powerpoint template blue ocean buyer utility map tool blue ocean buyer utility map tool the powerpoint slide features a blue ocean utility map tool, which may be used to show the interrelationship of the six stages of buyer experience and the six utility levels of the products and services offered by a specific company.