Business model innovation blue ocean strategy pdf

This framework is very innovative, as its principles challenge the conventional business strategy principles of fighting competitors headon. Blue ocean strategy is ideal for consumer products. 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 including examples and pdf download. Business model innovation and digital strategy fourweekmba. Companies need to build their blue ocean strategy in the sequence of buyer utility.

Conceptualizing business model innovation in a framework of four specific actions w. Within the current business market, the companies are always involved in fierce competition, due to the development of technology and globalization. Blue ocean challenges companies to push the boundaries of their industries and offer consumers something unique of immense value. This allows them to build a viable business model and ensure that a company profits from the blue ocean it is creating. In this article, we will look at 1 what is a 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. Analyzes not only winning business players that created blue. Pdf on jan 1, 2017, robi awaluddin and others published business model canvas innovation and blue ocean strategy for efishery find, read and cite all the research you need on researchgate.

Furthermore the blue ocean strategy was awarded with. What is the blue ocean strategy the term blue ocean was coined by two professors w. This paper is an attempt to highlight how business model innovation can be a disruptive force in any industry which can shake the roots of a wellestablished firm by using a case study on airbnb. Pdf business model canvas innovation and blue ocean strategy. Business model innovation decision making solutions. In the past 50 years, the average business model lifespan has fallen from about 15 years to less than five. Yet, the business model canvas is just the beginning. Blue ocean strategy value innovation strategy canvas four actions. Product and service innovation are essential, but business model innovation can deliver more lasting competitive advantage, particularly in disruptive times.

Blue ocean strategy and new business models in the food industry. Pdf business model canvas innovation and blue ocean. Blue ocean strategy this is the name given to a technique for exploring innovation space originally developed by two professors at the business school insead. Blue ocean strategy is a creative way to innovate your strategy and in turn to innovate the business model. Amazon innovates with its business model, not drones wired. Chan kim and renee mauborgne in their book titled blue ocean strategy. Blue oceans seldom result from technological innovation. Value innovation is the simultaneous pursuit of differentiation and low cost, creating a leap in value for both buyers and the company. 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. Its time to dispel the myth that innovation must be disruptive. The blue ocean strategy book has been sold over 3,5 million times, was published in 43 languages and is a bestseller across five continents. A blue ocean strategy adopts the belief that markets and industries are not structured to beget competition. Blue ocean strategy is referred to a market for a product where there is no competition or very less competition.

The logic behind blue ocean strategy is counterintuitive. The authors researched the impact of innovative ideas on traditional industries and studied cases from companies such as tesla motors and starbucks, creating a most attractive model of innovation that allows you to rethink. Download it once and read it on your kindle device, pc, phones or tablets. Blue ocean strategy pursues value innovation in their analysis of strategic moves over 120 years, the authors found a consistent pattern to successful blue ocean strategies. Its a methodology that helps companies identify highpotential areas for innovation that competitors have yet to discover. Disruptive innovation and blue ocean strategy trustedpeer. As mauborgne2005 said, the capacity of an enterprise to move into the blue ocean could be described as the business success. 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 kindle edition by kim, w. Blue ocean strategy is a growth strategy framework focused on the idea of creating an uncontested market spacei. By defining and seeing examples of the blue ocean strategy, your organization can learn how to execute on this strategic planning model and successfully reconstruct your market. The cornerstone of blue ocean strategy what consistently. In recent years disruption has become the battle cry of business. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. For example, competing factors in blue ocean strategy are similar to the definition of finite and infinite dimensions in funky business.

Blue ocean strategy is a new way of thinking, a new strategic mindset, a bold new path to winning the future. Companies need to build their blue ocean strategy in the sequence of buyer utility, price, cost, and adoption. Disruption occurs when an innovation creates a new market and business model that cause established players to fall. Subsequently, after an overview of the main dynamics of competition. This blog article is a overview of some of the key points of the book by w. Survive and further develop the company seems to be harder than before. This is a focus on generating additional demand rather than improving or increasing supply through value innovation.

Chan kim and renee mauborgne and is the cornerstone of marketcreating strategy. Opinions expressed by forbes contributors are their own. Strategy canvas understanding your business model customer relationship 5 key partners 6 key resources 7 costs 9 key activities 2 customers 3 channels 4 revenue 8 value provided to customers 1 strategy canvas understanding your business model. Pdf blue ocean strategy and new business models in the. How to create uncontested market space and make the competition irrelevant. The best way to understand value innovation is to consider value and innovation separately. Value innovation is distinctively different from the competitive strategic approach that takes an industry structure as given and seeks to build a.

This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. Blue ocean strategy is based on the idea that every enterprise can achieve higher profit by creating new demand in noncompetitive market so called blue ocean. Its a methodology that helps companies identify highpotential areas for. The circus business was and still is in longterm decline. Using business model innovation to create new paths to growth. Blue ocean strategy is a book published in 2005 and written by w. This article uses examples from the real world to discuss the specifics of the blue ocean strategy. Blue ocean is a slang term for the uncontested market space for an unknown industry or innovation.

Blue ocean strategy is a consistent pattern of strategic thinking. Of course, the blueocean approach to this model would call. Business models, business strategy and innovation david j. Business model innovation is about increasing the success of an organization with existing products and technologies. Teece whenever a business enterprise is established, it either explicitly or implicitly employs a particular business model that describes the design or architecture of the value creation, delivery, and capture mechanisms it employs. Looking at entire industries in this way allows you to tell over time whether an innovation strategy or a competitive strategy is best. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. Strategyzer aspires to create a whole new generation of business tools that change the way organizations do strategy and innovation. Blue ocean strategy and its implications for businesses. Pdf blue ocean strategy as a tool for improving a companys. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy. Because value to buyers comes from the offerings utility minus its price. Munich personal repec archive the concept of ideal strategy and its realization using white ocean mixed strategy.

Learn the concepts of tipping point leadership and fair process that ensure effective execution of blue ocean strategy. Pdf harvard business school press blue ocean strategy rajeh. Blue ocean strategy, organizational performance, red ocean strategy, value. The concept of blue ocean strategy first took the business world by storm in 2005 when authors w. Summary of the first four chapters of the international bestseller blue 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. Made by group d of the minor global trendwatching 2015. Importance of the blue ocean strategy to a business. Blue ocean strategy will provide managers and entrepreneurs with a number of tools, approaches and models to support lateral and creative thinking, to create decisionmaking, to support and to systematize strategic innovation and to help moving towards the blue ocean. Value innovation strategy competes in an uncontested market space. We are excited to share this knowledge with you and highlight some best practices.

Blue ocean strategy can be applied across sectors or businesses. By defining and seeing examples of the blue ocean strategy, your organization can learn how to execute on this strategic planning. In executing a blue ocean strategy, how can a company overcome various organizational hurdles and build trust and commitment among people who work for or with the company. The blue ocean strategy explains how to guide your business across seas with less competition and greater profitability. What determines whether blue ocean strategy is a innovation or generation analytical tool highly depends on the sequence that is used. Chan kim and renee mauborgne wrote a bestselling book, blue ocean strategy, which has been translated into 43 languages. By crafting a compelling value proposition able to propel a new business model to scale up customers and create a lasting competitive advantage. Blue ocean strategy is a method of creating business strategy of the enterprise, which was described in a book by w. It takes its name form the metaphor of a sea in which many sharks are circling, competing with each other and occasionally thrashing around fighting over food creating a swirling.

In this article you will learn how to make your competition irrelevant and have sales and profit. Business model innovation is probably the most challenging of the innovation types as it will likely present an organization with major requirements for change. A new framework of blue ocean strategy for innovation. Aim of this dissertation is to investigate whether eataly, the largest wine and food marketplace of the world, entered a blue ocean via business model innovation.