What is Blue Ocean Strategy?
Rather than competing within the confines of the existing industry or trying
to steal customers from rivals (Bloody or Red Ocean Strategy) W. Chan Kim
and Renée Mauborgne are suggesting Blue Ocean Strategy: developing
uncontested market space that makes the competition irrelevant.
According to Kim and Mauborgne in the HBR of October 2004, competing in
overcrowded industries is no way to sustain high performance. The real opportunity
is: to create blue oceans of uncontested market space.
Competitive Advantage critique
Of course competition is important. But by focusing on competition and
competitive advantage,
according to Kim and Mauborgne, scholars, companies, and consultants have
ignored two very important - and far more lucrative - aspects of strategy:
- To find and develop blue oceans, and
- To exploit and protect blue oceans. These challenges are very different
from those to which strategists have devoted most of their attention.
In blue oceans demand is created, rather than fought over. There is ample
opportunity for growth that is both profitable and rapid.
Two ways to create blue oceans
- One is to launch completely new industries, as eBay did with
online auctions.
- It is more common for a blue ocean to be created from within a red
ocean when a company expands the boundaries of an existing industry.
Certainly Kim and Mauborgne deserve credits for having made the point of
the over-focus on competitive advantage and also for their beautiful metaphor
of the two types of oceans.
Book: W. Chan Kim,
Renée Mauborgne - Blue Ocean Strategy
Forum discussions about Blue Ocean Strategy.
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Blue Ocean Strategy in Small Companies
For most small businesses in the current environment, staying alive is a major issue! Simply paying the bills tends to drive one towards the ROS concepts.
The smaller companies have little spare capa...
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BOS is More of the Same
Blue Ocean Strategy is just more of the same old stuff. It takes industry analysis from Porter, differentiation from Trout and the ancient concept of strategy from Sun Tzu. There is not anything new w...
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17 comments
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Blue Ocean Strategy - Three Tiers of Noncustomers
There are three tiers of non-customers that can be transformed into customers. They differ in their relative distance from your market:
1. Non-customers that are closest to your market. They sit on t...
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Blue Ocean Strategy of Google
First it was IBM, then Microsoft and now Google. How Google made it to the top ? Adopting BOS ?
Google is a wonderful company revolutionizing information technology. The success of the networking com...
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3 comments
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BOS and ROS are Both Supplier Centric
In both ROS and BOS the focus is on the supplier essentially and on competition with other supplier(s). Both try to outdo the competition by studying competition and fighting or bypassing its USP.
In...
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First Mover Advantage / Price Maker in BOS
As soon as an organisation identified a new sector/industry as a part of BOS and entered it successfully, they will get a First Mover Advantage which helps them to dictate the terms and be a "price ma...
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Use CSR as Part of your Blue Ocean Strategy
Companies should consider Corporate Social Responsibility (CSR) as part of a Blue Ocean strategy.
Recent research concluded that most people preferred to buy from a business bringing out a product / ...
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BOS / ROS Isn't a Strategy
This could be a few things but, strategy, really? It's a process at best either, deliberate (ROS) or emergent (BOS). It could be a question for managers to ponder in forming strategy. Arguably those i...
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Blue Ocean Strategy - Apple
I think Apple computers have demonstrated remarkable success of Blue Ocean strategies time and again by launching new products: first iMac, then iPods, then iPhones and now iPads. I hope they keep thi...
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Importance of BOS is Focus on Innovating
This model is useful because it makes managers think about breaking the rules of competition.
Aristoteles said: "You can't change the wind, you can however adjust your sails."
So let's adjust our sa...
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Blue Ocean Strategy for UPS
UPS currently operates world wide and is at the forefront with electronic shipping technologies and a massive fleet of transportation to support business. By identifying the three tiers of non-custome...
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Blue Ocean Strategy Sequence L.L. Bean
The four steps of strategic sequencing for L.L. Bean's Blue Ocean Strategy (BOS) begin with buyer utility and the six stages of the buyer experience. (Kim & Mauborgne, 2005, P. 121).
When I analyzed ...
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BOS in Less Developed Countries
Kim & Mauborgne: create uncontested market space and make the competition irrelevant.
In the market place in less developed countries there are informal small businesses and illegal points of sale. I...
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Blue Ocean is Economics Failure
In my opinion, the idea of a Blue Ocean conflicts with and hurts the basic principles of economics which results in all economic profits tending to zero. Whenever an industry presents abnormal earning...
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Blue Ocean Strategy - Best Buy
I've chosen Best Buy to form a Blue Ocean strategy. The idea is to offer music lessons and basic computer courses to accompany the products they provide for sell.
The first consideration is the buyer...
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4 comments
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Blue Ocean Strategic Sequencing - Dell
I have been researching dell for the past several weeks in my business class and we are currently looking at the Blue Ocean strategy. I was asked to describe my sequencing of Dell and this is what I h...
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Blue Ocean Strategy Sequencing - Nestle
Nestle's Blue Ocean Strategy Sequence
Greetings to the group. For an assignment I described a Blue Ocean strategy sequence for Nestle. Please read the following and make any comments or suggestions y...
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2 comments
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Blue Ocean Strategic Sequence for Barnes and Noble
Barnes and Noble while it is not presently in a Blue Ocean environment it is certainly a company that has a history of pursuing such environments and appears to be following the same procedures to ach...
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Blue Ocean Strategic Sequencing for Delta Airlines
The fourth principle of the Blue Ocean Marketing Strategy is to get the Strategic Sequence of the Blue Ocean Strategy correct. The sequence has four steps which are utility, price, cost, and adoption....
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Blue Ocean Strategic Sequence for Blockbuster
The BOS sequencing for Blockbuster is as follows:
- Buyer utility. They created buyer utility by offering convenience and affordability with their new online renting business model. They took away th...
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Courses about Blue Ocean Strategy.
Beginners Course
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Advanced Course
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Course for Experts
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The best, top-rated topics about Blue Ocean Strategy. Here you will find the most valuable ideas and practical suggestions.
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Purple Ocean Strategy
If there are shallow, boiling, highly competitive, bloody RED oceans, and there are deep, calm, clear BLUE oceans of untapped opportunity, are there also "PURPLE" - less competitive - oceans in betwee...
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Blue Ocean Strategy Disadvantages
While most of the participants in this forum are quick to point out the first mover advantage that a BOS creator gets, we need to be aware of the cost in case the strategy flops. Given today's global ...
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Differences in BOS / ROS Cultures
I have discovered over the last five years that in Red Ocean Strategies (ROS) people compete to maintain a competitive edge over the rival companies, organizations or individuals through a number of u...
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Advanced insights about Blue Ocean Strategy. Here you will find professional advices by experts.
Consultancy Tips
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Teaching Tips
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Practical Implementation Tips
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All Blue Ocean Strategy Tools, Frameworks and Methodologies Summaries of all BOS Tools Summaries and in-depth links to all 15 Blue Ocean Strategy tools by Kim & Mauborgne:
1. Pioneer-Migrator-Settler Map (P...
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Eliminate-Reduce-Raise-Create Grid Blue Ocean Strategy Tools A great BOS-tool Kim and Mauborgne described is the "Four Actions Framework". This Four Actions Framework can be used to...
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The Strategy Canvas Diagnostic Framework Blue Ocean Strategy Formation Kim and Mauborgne introduce in their book an interesting tool they call "The Strategy Canvas". The Strategy Canvas is b...
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How to Find Good Product Ideas? List of 10 Approaches Discovering New-Product Ideas, Creative Approaches In his book “Product Leadership: Creating and Launching Superior New Products”, Robert Cooper suggests following ten way...
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Innovation Pitfalls Avoiding Innovation Traps Harvard Professor R. Moss Kanter describes 4 common innovation mistakes and corresponding remedies (HBR Nov 2006):
1. S...
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The Value Creation Logic Types Discovering Blue Oceans Based on Stabell and Fjeldstad’s value creation logics, Norman T. Sheehan and Ganesh Vaidyanathan are introducing a uniq...
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Recent Innovation Trends | New Innovation Types Open innovation, User Innovation, Value Innovation, Bottom-up Innovation Roland Bel (2012) outlines and explains four types of innovations that have become more and more important since the las...
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Six Paths Framework: How to Find or Create A Blue Ocean? Approaches to Reconstruct Market Boundaries In their book: Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant, Kim and ...
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How to Detect Consumer Needs that are Unmet? Product Innovation, New Product Development, Innovation Strategy In their article New Business Models in Emerging Markets" (Harvard Business Review, January-February 2011), Matthew J. E...
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A Closer Look Into Customer Value Customer Value Analysis, Strategic Marketing, Innovation Strategy It is often argued that customer value is required for staying competitive and successful as organization. But in what w...
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Pitfalls and Obstacles in Product Development Strategy Product Development, Product Portfolio Management Although product development can be an important growth strategy, it is necessary to keep in mind that several factors t...
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Value Innovation Strategy Best Practices Understanding the Fundamentals of Blue Ocean Strategy The fundamentals of the "Blue Ocean" concept can be found in an earlier HBR artice by W. C. Kim and R. Mauborgne (1997) ...
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How to Think Differently in Blue Ocean Strategy and Innovation? How to Be Innovative Strategy is always related with risk, due to market volatility. Also today´s volatility is increasing very fast. So inno...
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How to Determine the Right PRICING? Steps to Strategic Pricing One major part of the Blue Ocean Strategy is the Strategic Pricing. To help managers find the right price for a product/...
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How Can Incumbents Respond to Disruptors? 5 Strategic Options in Reaction to Disruptors In recent years, the challenges to incumbent majors across industries have come mainly from low-cost competitors and fr...
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Classes of Innovation | Sources of Innovation Innovation, Creativity, Organizational Innovativeness, Lateral Thinking, Out of the Box Thinking, Blue Ocean Strategy TWO CLASSES OF INNOVATION
Innovation can be triggered or enabled by two broad classes:
KNOWLEDGE PUSH: Innovation trig...
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How to Lead an Innovation Team Best Practices, Innovation Team Management In order to become a great innovation team leader, Ram Charan suggests in the article "P&G's Innovation Culture" (strate...
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In Which Direction Should we Grow our Portfolio? Portfolio Strategy, Innovation Strategy According to Professor Aneel G. Karnani in 'Mastering Strategy', there's no standard way to gain market value for all bu...
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Innovating by Reconsidering Value Delivery Fundamental Innovation When innovating their business model, companies need to reconsider their value proposition from all perspectives. One of...
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How to Design Experiments to Support Decision-making on Strategic Innovations Strategic Innovation, Strategic Decision-making, Strategic Experimenting, Experiments, Strategic Testing, Innovation Tes The probability of success of a major innovation is difficult to assess. Statistics and other datasets only provide info...
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Why Large Firms are Having Difficulties to Deal with Disruptive Innovations Innovation Management Christensen explains why many firms, especially large firms, have trouble with adapting and thus with surviving when dea...
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What Makes a Company Innovative? Innovation Best Practices, R&D Best Practices, Corporate Innovation A futurethink 2006 Innovation Tracker Survey mentions:
- Ability to create a climate that continuously fosters innovat...
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Designing Complex Products or Systems Through Iterative Rapid-cycle Prototyping Design Thinking, Disruptive Innovation, Blue Ocean Strategy, Introducing Complex Systems, Co-Creation Today, organizations are increasingly developing and designing new and complex products or systems. In other words, the ...
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Entrepreneurial Strategies in Emerging Markets Emergent Strategy, Entrepreneurship, Strategic Innovation Chanvatipsakul and Wongsurawat (2013) examined the reasons why SMEs are successful in entering emerging markets while bi...
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Various sources of information regarding Blue Ocean Strategy. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.
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Introduction to BOS Comprehensive Presentation Introducing BOS Comprehensive presentation introducing BOS. Topics:
- Blue Ocean Vs. Red Ocean Strategy
- Blue Ocean Strategy Tools
-...
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Conversation with Chan Kim and Mauborgne Interview Interview with W. Chan Kim and Renee Mauborgne. 10 questions and answers about BOS and ROS....
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Co-opetition, PARTS and Changing the Strategic Game Business Strategy, Innovation Strategy Comprehensive presentation about the concept of co-opetition based on Brandenburger and Nalebuff (1998), including the f...
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First Introduction to Blue Ocean Strategy Understanding the Definitions of Blue and Red Ocean Strategy Short visual introduction of the 2 types of strategy as conceived by Kim and Mauborgne.
Blue Ocean Strategy is a way to...
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An Integrated Model of Value Creation Based on the Refined Kano's Model and the Blue Ocean Strategy Blue Ocean Strategy, Customer Value, Value of Customer, Refined Kano Model, Creative Value It is not sufficient for a contemporary firm to satisfy its customers; to be really successful, a firm must create value...
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Techniques for Entrepreneurial Thinking Entrepreneurship, Critical Thinking, Creative Thinking, Lateral Thinking, Entrepreneurial Thinking This presentation elaborates on the different types of thinking for successful entrepreneurship. The presentation includ...
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Reinventing your Business Model Business Model Change, Strategic Innovation A presentation that clearly explains the concept of changing business models according to Kagermann, Johnson and Christe...
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Blue Ocean Theory Success Stories Short Introduction and Success Stories of BOS In world’s business today many companies are swimming in the red ocean of bloody competition. To obtain profitable grow...
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Blue and Red Ocean Strategy Diagram Strategic Innovation Download and edit this 12manage PowerPoint graphic for limited personal, educational and business use.
Republishing in ...
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Useful tools regarding Blue Ocean Strategy.
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