Blue Ocean Shift is the essential follow-up to Blue Ocean Strategy, the classic and Winner of the Best Strategy and Leadership book by CEO-Read . A global bestseller and one of the best business strategy books available, Blue Ocean Strategy challenges everything you thought you knew about strategic. The book is divided into three parts: 1. The first part presents key concepts of blue ocean strategy, including Value.
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Editorial Reviews. From Publishers Weekly. Kim and Mauborgne's blue ocean metaphor "Blue Ocean Strategy is the most successful book on business. Blue Ocean Strategy book. Read reviews from the world's largest community for readers. The global phenomenon, embraced by business worldwide and. Blue Ocean Strategy, Expanded Edition by compwalsoihassre.cf Kim, , available at Book Depository with free delivery worldwide.
This market is untainted by competition. In blue oceans the demand is created so there is no need to fight over space. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. The classic example used in the first book and the extended version is Cirque du Soleil.
This makes logical sense. The concept is compelling.
However, one could easily argue that a new market space has not been created. As with Cirque du Soleil and other examples such as Yellow Tail Wine and South West Airlines, these companies have simply differentiated themselves from the competition. The market spaces always existed, they were just not serviced very well.
About the Book: Blue Ocean Strategy
Conclusion Regardless of the view you might take, the real benefit of the Blue Ocean Strategy is the methodical approach of analysis that has been promoted by the authors.
For this they should be applauded.
Not least of which, they have introduced the Strategy Canvas , a simple methodology to compare a business to a benchmark or similar industry. The strategic move must raise and create value for the market, while simultaneously reducing or eliminating features or services that are less valued by the current or future market.
The Four Actions Framework is used to help create value innovation and break the value-cost trade-off. Value innovation challenges Michael Porter 's idea that successful businesses are either low-cost providers or niche-players.
Instead, blue ocean strategy proposes finding value that crosses conventional market segmentation and offering value and lower cost.
Educator Charles W. Hill proposed a similar idea in and claimed that Porter's model was flawed because differentiation can be a means for firms to achieve low cost. He proposed that a combination of differentiation and low cost might be necessary for firms to achieve a sustainable competitive advantage.
Many others have proposed similar strategies. For example, "competing factors" in blue ocean strategy are similar to the definition of "finite and infinite dimensions" in Funky Business. Just as blue ocean strategy claims that a red ocean strategy does not guarantee success, Funky Business explained that "Competitive Strategy is the route to nowhere". Funky Business argues that firms need to create "sensational strategies".
Kim and Mauborgne explain that the aim of companies is to create blue oceans, that will eventually turn red. This is the same idea expressed in the form of an analogy.
Blue Ocean Strategy – Book Review
Kim and Mauborgne claim that blue ocean strategy makes sense in a world where supply exceeds demand. Blue ocean vs.
Companies need to go beyond competing. To seize new profit and growth opportunities they also need to create blue oceans. The authors argue that competition based strategies assume that an industry's structural conditions are given and that firms are forced to compete within them, an assumption based on what academics call the structuralist view, or environmental determinism.
To sustain themselves in the marketplace, practitioners of red ocean strategy focus on building advantages over the competition, usually by assessing what competitors do and striving to do it better.
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Hence, competition, the supply side of the equation, becomes the defining variable of strategy. Here, cost and value are seen as trade-offs and a firm chooses a distinctive cost or differentiation position. Because the total profit level of the industry is also determined by structural factors, firms principally seek to capture and redistribute wealth instead of creating wealth.
They focus on dividing up the red ocean, where growth is increasingly limited. Blue ocean strategy, on the other hand, is based on the view that market boundaries and industry structure are not given and can be reconstructed by the actions and beliefs of industry players.
This is what the authors call the reconstructionist view. To them, extra demand is out there, largely untapped.
The crux of the problem is how to create it. This, in turn, requires a shift of attention from supply to demand, from a focus on competing to a focus on value innovation — that is, the creation of innovative value to unlock new demand.
This is achieved via the simultaneous pursuit of differentiation and low-cost. Competition in the old game is therefore rendered irrelevant.
By expanding the demand side of the economy, new wealth is created. Such a strategy therefore allows firms to largely play a non—zero-sum game, with high payoff possibilities. Critelli cited ACTG's development of a machine, which enables people to design and print their own postage from their desktops, as an example of a blue ocean strategic move.
One success story that does exist is Nintendo , who first applied the blue ocean strategy to create the Nintendo DS handheld game system , which was the first portable gaming system to offer dual-screen gaming and a touch screen in In , Nintendo released the Wii , which used unique motion controls. The 3DS is Nintendo's third endeavour for its blue ocean strategy.
Its first two attempts, the Nintendo DS and Wii, were wildly successful, becoming some of the biggest selling platforms in history. Nintendo revealed their Blue Ocean Strategy during an E3 press conference during the hype build-up of the Wii. Hence, a critical question is whether this book and its related ideas are descriptive rather than prescriptive. They defined this success as a significant drop in crime in the City of New York after Bratton took office in Many social scientists would disagree that it was Bratton's policies that led to crime reduction: rather, the city was simply part of a nationwide trend in decreasing crime.Is this feature helpful?
The Strategy Canvas provides a highly visual tool to help look at future options. Do not focus on your existing customers because they are relatively happy anyway, and competition is stiff; focus on getting new customers instead as they are the Blues. Although some of the suggestions strike me as too esoteric to prove useful in a real business, the majority are simple, straight-forward, and can be utilized as useful thought experiments if nothing else.
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