This paper applies blue ocean strategy to the process of game design. Jun 14, 2014 red ocean strategy and blue ocean strategy. The researchers called this the red ocean, analogous to a shark infested ocean where the sharks are fighting each other for the same prey. Competition often turns it into a red ocean and the cycle goes on. The bluest ocean strategy for emerging ict business. Smaller ocean regions such as the mediterranean sea, gulf of mexico, and the bay of bengal. The history of business shows that the railroads and ma bell. Startups using it enjoy a competitorsfree market and when the copycats and competitors finally come, its harder for them to beat the predecessors since people dont like changing their habits. The authors argue that conceptualization is a crucial stage in game design, which should be based. This is where everyone would like to be and it is possible for you to have a blue ocean. Chan kim and renee mauborgne in their bestselling book of the same name. However, the price competition only results in a red. Tru group inc blue ocean strategy belongs in the dead sea. In this article you will learn how to make your competition irrelevant and have sales and profit.
Jul 30, 2017 the blue ocean strategy can lead to expansion of the business through increased profits. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. A business model describes the rationale of how an organization creates, delivers, and captures value economic, social, cultural, or other forms of. Blue ocean strategy says a company can create a blue ocean market space by innovating a new product or service mainly focusing on new to the world services. Kim and mauborgne compared this to a blue ocean where the water is clear and blue, a lovely place to go for a swim. In this 5 minute blog, ill tell you what the difference is between a red ocean vs blue ocean and how you can survive a red ocean and swim into a more profitable and audible blue one. Valued relationships clients, partners, and ourselves will always be heard and valued. The red oceans are the markets where sharks fight for their share, while the blue oceans, competition is irrelevant. Blue oceans denote all the industries not in existence today the unknown market space, unexplored and untainted by competition. A term coined from the 2005 book, the blue ocean strategy, by w. Blue ocean strategy displays an orderly way to deal with making the challenge unessential and traces standards and instruments any organization can use to make and catch their blue seas. In such markets they intend to create demand rather then being fought or competed over the utilities. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. Value innovation strategy competes in an uncontested market space.
In red ocean companies try to surpass their rivals to take hold of a greater share of existing demand. Profitworks is a company built on the values of integrity, hard work, doing things better than they have ever. This blog article is a overview of some of the key points of the book by 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.
Blue ocean strategy chapter 14 the four action framework chapter two. How to create uncontested market space and make the competition irrelevant. The automotive industry is claimed to be a blue ocean industry in 1908 18 when henry ford launched the model t but it was also a blue ocean industry according to the authors in 1926 yes that is eighteen years later when gm created a new blue ocean by selling cars for fashion and comfort. Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to. Blue ocean strategy blue ocean strategy pdf five keys to blue ocean strategy blue ocean strategy 2004 blue ocean strategy expanded edition book summary blue ocean strategy blue ocean strategy book by w. Blue ocean strategy is where a company creates a completely new market space or market category. The real opportunity is to create blue oceans of uncontested market space.
To understand red ocean strategy let us begin by defining blue ocean strategy. Geographers divide the ocean into five major basins. Blue ocean strategy write my essay i need help with my. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking away from the. A blue ocean strategy may come out of a red ocean strategy.
The red ocean in contrast is red because ofwell blood. If uncontested market space is the blue ocean, chances are that a company will never find a blue ocean in the free marketplace. In a red ocean market, everyone is just talking a different version of the sames thing to the same group of people vs a blue ocean where you guide new people over to your primary program. When red ocean becomes too crowded, the need of creating a blue ocean strategy will increase. Chan kim and renee mauborgne, professors at insead. Dec, 2012 this shows that a blue ocean never stays blue. 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. Blue ocean refers to the industries which do not exist in the present markets.
Innovation thinking outside the box will create a new market space and help set our clients apart, thus making the competition irrelevant and pricing models uncontested. Find out today what blue ocean strategy can do for you. Like the blue ocean, it is vast, deep and powerful in terms of opportunity and profitable growth. Blue ocean vs red ocean strategies 6 major differences red bull case study published on june 2, 2016 june 2, 2016 91 likes 5 comments. These markets are new and as such, there is the risk of completely misjudging the market and getting it wrong. New blue oceansmicrosoft kinect is spatial recognition helps ms gain leading market share 26. Download blue ocean strategy pdf including examples. Blue ocean strategy order description 1 article summary 2 blue ocean strategy a list of related materials, with annotations to guide further exploration of the articles ideas and applications 11 further reading competing in overcrowded industries is no way to sustain high performance. There is ample opportunity for growth that is both. Dear new rochelle, as you continue to navigate these difficult times, i feel compelled to communicate admiration for your resilience and my acknowledgement of how challenging the current situation has been for central administration, building leaders and teachers. Icebergs represent policies and regulations that move very very slowly, like regulatory.
An analytical study of red ocean and blue ocean strategy with. How to create uncontested market space and make the competition irrelevant pdf by w. In a red ocean environment the market becomes more fierce and crowded as. According to tim hill, president, blackboard learn professional education, blackboard inc, the training and development industry is a splintered industry with a lot of competition. There can be a very highprofit margin in new markets. 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. Green ocean at this point, it is relevant to introduce the topic of our discussion. Rene is coresearcher and coauthor for the best selling book blue ocean strategy. Ideal for strategy lectures or strategy analysis introduction, impress your audience with this appealing slide. The book titled blue ocean strategy is not helpful to management dont buy it and if you. Blue ocean strategy the blue ocean approach is a strategic tool that helps innovation strategists asses current and desired future strategic states whereasred ocean is a current state. While there is only one global ocean, the vast body of water that covers 71 percent of the earth is geographically divided into distinct named regions. The successful creation of a blue ocean can create brand equity which could last for years or even decades. Blue ocean strategy generally refers to the creation by a company of a new, uncontested market space that makes competitors irrelevant and that creates new consumer value often while decreasing costs.
It is either when businesses enter an oversaturated marketplace, or they simply defend. A different concept of market grabbing, is something called blue ocean. As we begin our dive into the blue ocean strategy, it is important to understand what most businesses do, and why it doesnt work. Red ocean and blue ocean strategies comparison table slidemodel. Red ocean strategies to blue ocean strategies can really help an enterprise or an economy to overcome the great depression and create the basis for a healthier competition. Moreover, blue ocean supports companies to generate new blue ocean when new competitors come into their blue ocean. The majority of businesses practice some form of the red ocean strategy. Blue ocean businesses create new markets, new demand, and often give the business insulation against competition. Blue ocean strategy is a strategy that advice companies to go to a new market, which interest customers and avoid competition from the existing market. There is ample opportunity for growth that is both profitable and rapid.
Blue ocean principles is committed to proliferating success through 5 key values. Most blue oceans are created from within red oceans by expanding existing industry boundaries. Red ocean strategy is a strategy which aims to fight and thrash the competition. Blue ocean strategy has helped numerous companies and organisations across the globe to create new market space and achieve pro. Red oceans represents all the industries in existence read little women online pdf today. The american ocean is a melting pot it blends both red and blue oceans, along with white icebergs. Companies that are already in existence may make a solid decision to come out of the usual way of doing things and go into uncharted grounds. In blue oceans, demand is created rather than fought over. Blue ocean strategy and the breakthrough toolkit blue oceans are defined by creating new market space in existing markets and generally are created by expanding existing industry boundaries by providing new value value propositions at an overall lower cost. A blue ocean strategy is based on creating demand that is not currently in existence, rather than fighting over it with other companies. Set sail towards your blue ocean jk beteiligung gmbh. The blue ocean, on the other hand, is calm, smooth, with lots of food and little or no competition. The ocean is blue because it absorbs all the other colors. The boundaries between these regions have evolved over time for a variety of historical, cultural, geographical, and scientific reasons.
Sunlight shines on the ocean, and all the colors of the rainbow go into the water. The value of innovation is attained when price and quality of the product is entirely aligned in the whole strategic system of an organization. Welch, md, facep,1 and bob edmondson, mph2 a common argument against the accountable care model is that our customers are not clamoring for the system we are building. Applying blue ocean strategy to the foundation of accountable. Blue ocean strategy offers startup owners a way to create a new market and fill it with their product.
As competition increases, prospects for profit and growth decline. Jun 02, 2016 blue ocean vs red ocean strategies 6 major differences red bull case study published on june 2, 2016 june 2, 2016 91 likes 5 comments. You must keep in mind that there is a deeper potential of the marketplace that hasnt been explored yet. The sentinel idea in blue ocean strategy is that of value innovation. However i believe developing new to the world services come with high risk and expenses but if done correctly can be very profitable. How to find a blue ocean for your startup blog web and. Blue ocean is a dynamic process that helps companies to create, and capture their own business. 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. Blue ocean vs red ocean strategies 6 major differences. 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. Red ocean and blue ocean strategies comparison table. Applying blue ocean strategy to the foundation of accountable care shari j. Chan kim pdf download blue ocean blue ocean strategie blue ocean shift pdf blue ocean shift blue ocean shift espanol pdf ocean blue sanded grout red ocean strategy 15fen finding the blue ocean. Blue ocean strategy including examples and pdf download.
Red ocean strategy and blue ocean strategy youtube. Through the blue ocean strategies the chances of higher profits and rapid growth are higher then in the red ocean markets. Each table is created as powerpoint tables, and are 100% editable. A marketcompeting strategy divides existing wealth between rival companies. In red oceans, there is a competitiveadvantage worldview, companies are often driven to outperform rivals and capture greater shares of existing or shrinking market space. Cirque created what the authors call a blue ocean, a previously unknown market space. New blue oceanssony creates blue ray more data storage on a discsuccess is unsure at this point 25. Swimming in the blue ocean, red ocean, and american ocean. The chart above summarizes the distinct characteristics of competing in red oceans red ocean strategy. In the first part of this paper we will try to approach the various theories on. Red ocean in blue oceans, demand is created rather than fought over. Consider some of the well known blue oceans created by the new york police department, southwest airlines, cirque du soleil, casella wine yellowtail. A blue ocean offers new opportunity for profitable and rapid growth to an entirely new market. The blue ocean strategy i the great courses duration.
Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. A red ocean is a metaphor for a market full of competitors. Chan kim and renee mauborgne that describes the opportunities of vast, untapped market spaces, or blue oceans, that can be developed by expanding market boundaries or launching new industries. An analytical study of red ocean and blue ocean strategy. The first step towards implementing blue ocean theory is finding your own blue ocean. An emergent reader pack if you have enjoyed this resource, you may also like the other free lessons and printables that are available at. Blue ocean strategy presents a systematic approach to making the competition irrelevant and outlines principles and tools any company can use to create and capture their own blue oceans. About us blue ocean principles business development. The only color left to reflect out of the ocean is blue. Blue ocean strategy case study service nsw 3 1 introduction blue ocean strategy1 has been used extensively to transform the public sector around the world at a local, state and national level. Chan kim and renee mauborgne have created a comprehensive set of analytic tools and frameworks to create blue oceans of new market space. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Moreover, blue ocean supports companies to generate new blue.
Posts about blue ocean strategy the corporate strategy blog. Application of blue ocean strategy to the conceptualization of games. 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. There is a defined market, defined competitors and a typical way to run a business in any specific industry.
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