Ideal for strategy lectures or strategy analysis introduction, impress your audience with this appealing slide. Profitworks is a company built on the values of integrity, hard work, doing things better than they have ever been done before and the utmost. The following table is useful in highlighting the different focus areas between a red ocean and blue ocean strategy. The book titled blue ocean strategy is not helpful to management dont buy it and if you. These competitors may possess a competitive advantage driven by cost, differentiation, or niche market strategies. He projected on the screen guestroom photos of eight different hotel rooms, belonging to different brands, and he asked who in the room could. 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. Red oceans are all the industries in existence today. It is worth noting the organizations will move between blue oceans and red oceans over time. See comparison between red and blue ocean strategies here in one simple table. Red ocean and blue ocean approach to industry boundaries.
A blue ocean strategy is based on creating demand that is not currently in existence, rather than fighting over it with other companies. Does the blue ocean really exist in the marketplace. That is, do you try to dominate existing markets or look for opportunities to create new ones. Red ocean blue ocean robo creating disruptive change to the way you work, what you do and who you work with. How to create uncontested market space and make the competition irrelevant, a book by professors w.
In simple terms, red ocean strategy is about how to outpace rivals in existing market space. In the blue ocean, there is a focus on trying to increase the size of the industry by attracting people who have never purchased in that. A red ocean is a metaphor for a market full of competitors. Mar 29, 2012 blue ocean strategies promise to break the tradeoff between costs and willingness to pay. Blue ocean vs red ocean business strategies youtube. Apr 02, 2015 comparing surface 3 and apple watch shows us the difference between a red ocean competitor and a blue ocean competitor which are you. Blue ocean vs red ocean strategy free download as powerpoint presentation.
Blue ocean shift is a roadmap to move you, your team, and your organization to new heights of confidence, market creation and growth. Therefore the market is usually heavily populated by competition and there are a set of rules that is known. Red ocean strategy pdf download download the blue ocean strategy summary pdf. This blog article is a overview of some of the key points of the book by w. Competitionbased blue ocean it represents all the industries not in existence today the unknown market.
While the authors of blue ocean strategy suggest using the latter approach, no matter which you select, there are a few things to keep in mind. Ways to create blue ocean one is launch completely new industries, as ebay did with online auctions. It is aimed at enriching blue ocean strategy with a case study in which we see the process of creating a blue. Like the blue ocean, it is vast, deep and powerful in terms of opportunity and profitable growth. Then, the team must answer the following questions in a written response coversheet and about 5 to 6 pages total for all the 4 questions. Based on the book blue ocean strategy, a red ocean is defined as a market where multiple competitors fight for the same customers. Blue oceans denote all the industries not in existence today the unknown market space, unexplored and untainted by competition. This collection of work by globally preeminent management thinkers w. Blue ocean strategy powerpoint templates present better. The result of the competition is destruction, which draws the analogy of red blood in.
Download blue ocean strategy pdf including examples. Jun 08, 2015 insead is the home of the blue ocean strategy open enrolment programme, which is designed to help executives begin to apply the concepts, tools and frameworks to the practical strategic challenges faced by their organisation. In this summary, well give a synopsis of the key concepts, tools and tips from the book. In red oceans, industry boundaries are defined and accepted and the competitive rules of the game are known.
The concept of ideal strategy and its realization using white. To understand red ocean strategy let us begin by defining blue ocean strategy. Value innovation strategy competes in an uncontested market space. Chankim renee mauborgne harvard business school press boston, massachusetts fmkim. 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. Included in the acquisition are three rlwi systems, two of which are currently. Apr 30, 2016 red ocean strategy is a strategy which aims to fight and thrash the competition. Blue ocean is a term used for uncontested market space compared to the red ocean that stands for the market space badly contested by battling competitors according to w. Competing in the red ocean means aiming to beat your competition.
Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. Pdf on oct 10, 2016, safak gunduz and others published how to make blue ocean turning into red ocean blue again. How to create uncontested market space and make the competition irrelevant pdf by w. Before we dive into blue ocean strategy examples, lets get clear on what a. Blue ocean is an analogy to describe the wider, deeper potential of market space that is not yet explored.
In red oceans, there is a competitiveadvantage worldview. 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. 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. In a red ocean environment the market becomes more fierce and crowded as. Red ocean blue is not a registered investment or trading adviser. 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. Blue ocean vs red ocean strategies 6 major differences. When thinking about your strategy you need to decide whether you want to operate competing with other charities as best you can red ocean or instead to create a whole new space for yourself where the competition is. A red ocean is a saturated market with industry competitors. Sep, 2015 does the blue ocean really exist in the marketplace. But its not always clear how to create a blue ocean strategy for yourself. Like the blue ocean, it is vast, deep, powerful in terms of pro. Blue ocean strategy including examples and pdf download this blog article is a overview of some of the key points of the book by w.
You must keep in mind that there is a deeper potential of the marketplace that hasnt been explored yet. If uncontested market space is the blue ocean, chances are that a company will never find a blue ocean in the free marketplace. Porters five forces is a very competitive marketing strategy. A blue ocean is focused more on creating new markets based on. In this article you will learn how to make your competition irrelevant and have sales and profit.
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. In a red ocean environment, the market becomes more fierce and crowded as competitors try. There is ample opportunity for growth that is both profitable and rapid. A blue ocean business typically has few competitors if any and their offering is fairly unknown to the general public. Commodity futures and options trading have large potential rewards, but.
In contrast, blue ocean strategy is about how to get out of established market boundaries to leave the competition behind. What is the difference between red ocean and blue ocean. In order to understand more about the two concepts lets look at the difference between blue ocean strategy and red ocean. Houston, october 17, 2016 oceaneering international, inc. Oceaneering completes acquisition of blue ocean technologies. Just because blue ocean space is almost competitionfree, its not good to get too comfy because new competitors will emerge and beat you at your own game a typical case where your blue ocean space. 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. The chart above summarizes the distinct characteristics of competing in red oceans red ocean strategy. Instead of swimming in the bloodstained red ocean, you can create a blue ocean. Red ocean vs blue ocean this blog article is a overview of some of the key points of the book by w. Chan kim and renee mauborgne, professors at insead. It is done to develop new strategies and procedures for attaining organizational goals.
What levie did to illustrate the fact that so much of the hotel industry has fallen into a sea of sameness i. The concept of ideal strategy and its realization using white ocean. Want more secrets and tricks like the blue ocean strategy. I like to think of it as a naval battle field versus oceans that are uncontested with no enemies. Successful trailblazing organizations will attract competition, creating a red ocean. Blue ocean strategy red ocean strategy blue ocean strategy compete in existing market space. Achieved via the delivery of features that have a highest marginal benefit to customer needs. How to create uncontested market space and make the competition irrelevant, professors w. Red oceans represents all the industries in existence read little women online pdf today. These systems started to gain popularity in the 1970s with consoles that played only pong. Blue ocean vs red ocean questions blue ocean vs red. The tools offered by the blue ocean approach are useful such as the strategy canvas and errc framework, but irrespective of whether your ocean is blue, red or some other colour. Blue ocean red ocean it represents all the industries in existence today the known market industry boundaries are defined and accepted, and the competitive rules of the game are known. Each table is created as powerpoint tables, and are 100% editable.
There is a defined market, defined competitors and a typical way to run a business in any. Mmtbatch 36 marketing management blue ocean strategy vs. It views longterm competition as the main concern that business people should be. In red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are well understood.
How does blue ocean strategy differ from red ocean strategy. Blue ocean strategy how to create uncontested market space and make the competition irrelevant w. Are you a fiveforces disciple or a blue ocean enthusiast. Blue ocean strategy powerpoint template sketchbubble. Blue ocean strategy is a powerful framework for finding new business opportunities.
This is a very competitive tough market, while a blue ocean. You can follow blue ocean strategy and leadership on twitter and facebook and visit the website here. Blue ocean strategy is where a company creates a completely new market space or market category. A red ocean business is a company that has numerous competitors and the products and services are fairly well known. An analytical study of red ocean and blue ocean strategy with. Why churches need blueocean strategies biblical leadership. Blue ocean strategy, the global phenomenon that has sold over 4 million copies and is.
Red ocean in blue oceans, demand is created rather than fought over. Chan kim and renee mauborgne, professors at insead, france. Most of us work in industries that require that we displace our competitors in order to grow. This is the same idea expressed in the form of an analogy. A blue ocean is formed once a company realizes significance of innovation. In red ocean companies try to surpass their rivals to take hold of a greater share of existing demand. In most industries there is little effort to attract new buyers to the industry, thus the focus on the customers currently purchasing in that industry. While blue ocean space is a comfortable zone, it might be unhealthy for business leaders in the long run.
Innovation, new market space and creating demand are central characteristics. Take a look at this comparison between the two strategies published by sage growth partners. The fighting results in a red sea, because much of the energy is spent competing. The services and content provided by red ocean blue are for educational purposes only, and should not be considered investment advice in any way. Most blue oceans are created from within red oceans by expanding existing industry boundaries.
Surface 3 and apple watch red oceans v blue oceans strategy. The red oceans are the markets where sharks fight for their share, while the blue oceans, competition is irrelevant. We will introduce the aspects of red ocean strategies that most of the companies use around the world, and then we will compare the advantages and disadvantages of using blue ocean strategies. Red ocean and blue ocean strategies comparison table slidemodel. 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. One is to launch completely new industries, as ebay did with online auctions. Follow the fivestep process to successfully shift from red oceans of competition to blue oceans of new market space. Jan 21, 2015 in their 2005 book entitled, blue ocean strategy. Chan kim, and renee mauborgne of insead, a graduate business school with locations in europe and the middle east, put forth a simple, but effective argument as to why markets should be divided into two distinctly different categories. A different concept of market grabbing, is something called blue ocean. But its much more common for a blue ocean to be created from within a red. There are tons of competition in the existing market space. Kim and mauborgne claim that blue ocean strategy makes sense in a world where supply exceeds demand. Blue ocean strategy including examples and pdf download.
Competition will ultimately catch up but it typically takes about 23 years for a blue ocean. 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. History and background a video game console is just a computer that is made only. Blue ocean vs red ocean strategy strategic management. Blue ocean businesses create new markets, new demand, and often give the business insulation against competition. The concept of blue ocean strategies is new in the business world as it was first published in 2005 in the bookmanual blue ocean strategy, by w. Red ocean markets are large and the rate of product innovation is low. As market structure is changed by breaking the valuecost tradeoff, so are the rules of the game. Pdf blue ocean strategy download full pdf book download.
Lets focus on two of the businessworlds trending marketing strategies for electronic market space today blue ocean vs. 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. We all know that ocean is vast and limitless and in the case of marketing, the word ocean has paramount significance when it comes to blue and red ocean strategy. Blue ocean strategy pdf blue ocean strategy blue ocean strategy 2004 five keys to blue ocean strategy blue ocean strategy expanded edition book summary blue ocean strategy blue ocean strategy book by w. In a red ocean there is blood in the water as firms are constantly fighting and competing for market share and customers. The value of having a blue ocean strategy is better understood when compared to a red ocean strategy. The insead blue ocean strategy institute is dedicated to extending the research on blue ocean shift, blue ocean strategy, and blue ocean leadership by chan kim and renee mauborgne and disseminating it to professors, researchers and practitioners around the globe. Discussion blue ocean strategy versus red ocean strategy every blue ocean company would ultimately reach to the level of red ocean.
But we believe that a blue ocean move will give the company a head start it requires to understand and conquer the existing competition. Advantages of blue ocean it captures the current state of play in the known market space. Every blue ocean move will ultimately turn into a red ocean. Insights from todays leading advisors and board members.
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