4 actions framework blue ocean strategy book

The strategy canvas the strategy canvas is both a diagnostic and an action framework for building a. Blue ocean strategy is a systematic approach to finding innovative, cost efficient, value adding, productmarket matches. The first part presents key concepts of blue ocean strategy, including value innovation the simultaneous pursuit of differentiation and low cost and key analytical tools and frameworks such as the strategy canvas and the four actions framework. The blue ocean strategy four actions framework also called eliminate reduce raise create grid errc grid is a complementary tool to the strategy canvas. Use features like bookmarks, note taking and highlighting while reading blue ocean strategy, expanded edition. The belief that to create a blue ocean, you must be first to market. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. 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. While this came in appendix a in the book, this is a good time to cover three industries with repeated blue ocean creation. Effective blue ocean strategy should be about risk minimization and not risk taking. The first part presents key concepts of blue ocean strategy, including value innovation the simultaneous pursuit of differentiation and low cost and key analytical tools and frameworks.

The frameworks offered in blue ocean strategy, on the other hand such as the strategy canvas and the four actions framework are specifically aimed at. Once a blue ocean is discovered, management must clearly formulate the blue ocean strategy and take the actual actions to implement the new strategy. Blue ocean strategy powerpoint templates present better. In this article you will learn how to make your competition irrelevant and have sales and profit.

Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of. To join the free indie business book club, click here. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. Blue ocean strategy bos introduction to bos bos tools. Analysis plandata usedkey assumptions analysis plan. Strategy and thinking is not limited by preconceived barriers, and a shift happens from a focus on the supply side to a focus on the demand. Chan kim and renee mauborgne have created a comprehensive set of analytic tools and frameworks to create blue oceans of new market space. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. Made by group d of the minor global trendwatching 2015. Chan kim and renee mauborgne is used to reconstruct buyer value elements in crafting a new value curve or strategic profile. Blue ocean strategy is a bad book, but it is not your usual bad book. Blue ocean strategy is a book published in 2005 and written by w.

In this article you will learn the plan they outline for how to make your competition irrelevant and have sales and profit growth in excess of anything you thought was even possible. 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. It is a dangerous bad book because it takes some thinking to figure out why it is bad, despite its success, and despite the fact that its key metaphor of blue ocean vs. The four actions framework is used to help create value innovation and break the valuecost trade. The first part presents key concepts of blue ocean strategy, including value innovation the simultaneous pursuit of differentiation and low cost and key analytical tools and frameworks such as the strategy canvas, the four actions. It provides guidelines to identify new competing factors and therefore be more creative during later phases of innovation and design a new buyer value curve. A fouraction framework for blueocean innovation the. First and foremost on their list is a tool used to break out of competition and make competition irrelevant called the strategy canvas. Value innovation strategy competes in an uncontested market space. The misconception that blue ocean strategy and differentiation strategy are synonymous.

The premise of the book is that companies can succeed by creating. Blue ocean strategy is referred to a market for a product where there is no competition or very less competition. To break the tradeoff between differentiation and low cost and to create a new value curve, there are four key questions to challenge an industrys strategic logic and. While the book is aimed primarily at large, traditional businesses, our book club members managed to scale some of the advice to fit our needs. The belief that blue ocean strategy is the same as innovation. By reading blue ocean strategy and applying its concepts. Now that youve done the hard work of identifying your blue ocean strategy, its time to present it to top management.

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. This blog article is a overview of some of the key points of the book by w. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. To break the tradeoff between differentiation and low cost in creating a new value curve, the framework poses four key questions, shown in the diagram, to challenge an industry. The company was able to identify and answer the needs of a specific and new market in the us by applying the four actions framework of the blue. It is being published in a recordbreaking 44 languages and is a w. Blue ocean strategy on jet blue case study by neil k. Blue ocean strategy chapter 14 the four action framework chapter two. About the blue ocean 4 actions framework template who created blue ocean 4 actions template. Each industry underwent continuous upheaval, each time spurred by a blue ocean strategy that 1 reduced factors unimportant to buyers, 2 increased factors important to buyers, 3 expanded the market. How to reinvent your business blue ocean strategy by w. The structure can be created or recreated by the steps taken by players in the market.

Today, we tell you something about an interesting chaper in osterwalders book about the blue ocean strategy. The misconception that blue ocean strategy is a lowcost strategy that focuses on low pricing. Your productservice must raise and create customer value gain and simultaneously reduce and eliminate features or services that are less valued, or not valued at all, the customer pain. Four actions framework of blue ocean applied to jet blue. On blue ocean strategy by kim and mauborgne the business model canvas is a perfect extension of the analytical tools presented by kim and mauborgne. Chan kim and mauborgne have therefore constructed more frameworks that can help with this process like.

In a blue ocean you change the playing field of strategy. Summary of the first four chapters of the international bestseller blue ocean strategy. Four actions framework blue ocean strategy shortform blog. Four actions framework of blue ocean applied to jet blue 1.

Blue ocean strategy can be applied across sectors or businesses. Chan kim and renee mauborgne in the indie business book club. In case if you havent, it was published in 2005 and was the top worldwide best selling business and management book by w. To make your life easier, you can download these free templates that have been. Chen, information systems theory and practices blue ocean strategy. The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. 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. They provided a powerful framework for questioning incumbent business models. Blue ocean strategy formulation the four principles of. Four actions framework blue ocean strategy posted by allen cheng mar 16, 2020 this article is an excerpt from the shortform summary of blue ocean strategy by w. According to the wine economist, it is because it is not just wine, but a new type of product within the wine industry. The four actions framework and errc grid tweet after you define the three tiers of non customers, the idea is that you poll these noncustomers and find out what it would take to purchase your product or service. Blue ocean strategy including examples and pdf download. How to create uncontested market space and make the competition irrelevant kindle edition by kim, w.

Blue ocean strategy the four actions framework to reconstruct buyer value elements in crafting a new value curve, blue ocean strategy has developed the four actions framework. Identify actions to actualize the strategies conclusion facilitators. This tool is the central diagnostic and action framework for building a compelling blue ocean strategy. They are professors of strategy at insead, one of the worlds top business schools, and codirectors of the insead blue ocean strategy institute in fontainebleau, france. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Bos four actions framework errc grid innovating now. The fouractions frameworkon blue ocean strategy to reduce, create, raise and eliminate industry practices to create a.