Blue Ocean. Strategy. How to Create Uncontested Market Space and. Make the Competition Irrelevant. W. Chan Kim. Renée Mauborgne. HARVARD BUSINESS . PDF Drive is your search engine for PDF files. As of today we have Blue ocean strategy: how to create uncontested market space and make the competition. Download the blue ocean strategy summary PDF. Click the link above to read the key concepts and everything you want to know about the blue ocean strategy.

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Visi Pramudia BLUE OCEAN STRATEGY. How to Create Uncontested Market Space and. Make the Competition Irrelevant. •A diagnostic tool for building a compelling BOS. •It capture the current state of play in the known market space. •Allow us to understand: Where the competition . Blue Ocean Strategy by W. Chan Kim and Renée Mauborgne. Competing in overcrowded industries is no way to sustain high performance. The real opportunity.

A pricing innovation in your industry is often standard in another industry.

Consider going from paid to freemium, like many software services. From Utilty, Price, and Cost to Adoption Since your company has stakeholders used to the status quo, changing your strategy may provoke them.

Handling their concerns is a first barrier to adopting your blue ocean strategy. Employees They fear for their jobs and responsibilities. Prepare them for change and allow changes in roles to the extent possible.

Business Partners They fear disrupting an existing profitable relationship. Communicate how changing the strategy will increase profits further.

General Public Anticipate common objections to your strategy and proactively message to own the conversation. Monsanto could have educated on the safety of GMOs and utility to lower food costs, and pushed for labeling. Part 3 of this Blue Ocean Strategy summary will go much more into detail on handling the people side of implementation. Are there compelling reasons to download your offering?

Price Is your price easily accessible to the target mass of downloaders? Cost Does your cost structure meet the target cost?

Adoption Have you addressed adoption hurdles up front? Philips CD-i is an example. Pricing was low — the monthly fee was the same as a magazine, putting it in impulsive download territory. Adoption — it partnered with handset manufacturers to stay ahead of competitors and attracted content providers onto the network. Part Three: Executing Blue Ocean Strategy The final section of this Blue Ocean Strategy summary covers the common hurdles of executing your blue ocean idea, particularly in terms of breaking status quo bias and securing worker relations.

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Chapter 7: Overcome Key Organizational Hurdles Organizations undergoing a strategic shift face four hurdles: Cognitive — recognizing the need for change Limited resources Motivation — inspiring real action Politics The conventional wisdom on changing an organization is to deploy strength proportional to the size of the change needed.

To get a big change, mobilize massive effort. Blue Ocean Strategy argues for a more targeted method, to focus your limited resources on the areas of greatest disproportionate leverage. To illustrate this, the book uses the example of Bill Bratton, NYPD police chief who transformed New York City from a cesspool of crime to widespread safety within a few years. Instead, make people see the reality firsthand. Make them touch, see, and feel the problem so they can come to their own conclusions about the need for change Bratton forced top brass to ride the subway everyday to see the graffiti, gangs, and aggressive beggars firsthand.

In a previous role, he opposed a decision to download smaller, more efficient squad cars. Bratton invited his general manager for a tour of his squad, picking him up in one of the smaller cars. After two hours of driving, with little legroom up front and Bratton struggling with his police gear, the manager conceded. Larger cars were ordered.

Meet dissatisfied customers directly. But residents were still dissatisfied, and Bratton forced chiefs to meet with customers citizens. The police learned citizens felt harassed by minor offenses like graffiti and drunkards. This prompted an overhaul of police priorities. Resource Hurdle An organization in need of strategic change often has a resource shortfall.

In response, managers often curtail their ambitions or fight for resources.

Instead, consider finding areas of greatest leverage. Reallocate to hot spots and away from cold spots Where are your resources getting the highest value per dollar and the lowest?


Focus resources on the areas with highest impact. Bratton wanted to keep subways safe, but staffing every station and car was untenable. Analysis showed that most crimes occurred on only a few stations and lines. He reallocated officers to these areas, where they had a disproportionately large impact on crime metrics. Bratton reallocated more staff to narcotics and gave them round-the-clock coverage.

Blue Ocean Strategy Books

A cold spot — area of great inefficiency — was booking criminals at the station, requiring 16 hours of officer time per criminal. This freed up manpower to conduct more patrolling.

Horse trade — match complementary resource needs between teams. When resources are low, departments tend to claw whatever resources they can get. This leads to inefficiencies where two departments each crave something the other has.

Another department had the opposite problem. By facilitating this trade, he gained credibility with both departments. Ask your teams what resources they need. Then redistribute resources so everyone wins. Motivational Hurdle Your team needs to understand the need for a change and how to accomplish it. Often managers rely on top-down communication on grand visions.

Instead, once again find the areas of greatest leverage. Find kingpins, the key influencers in the org. If you win over the kingpins, the people they influence will come aboard too. Bratton focused on his 76 precinct heads, each of whom managed police officers. Place kingpins in a fishbowl.

Influencers are watched by many, and so their behavior needs to be transparent. They need to be held accountable for executing the new strategy. Precinct heads were required to justify increases or decreases in performance and share their plans.

Public exposure causes social pressure to perform, since no manager wants to let down other managers or be shamed publicly. It prevents behind-the-door excuses, like blaming other managers for their shortcomings. Public discourse enables sharing of notes and strategy.

People feel engaged intellectually and emotionally, believing in a fair process. Atomize the goals.

A massive strategic vision can seem daunting — how in the world can it be accomplished within a short time frame? Break up the goal into small atomic blocks.

Political Hurdle Organizations have internal battles to get things done. Resistors who doubt your strategy can sap your momentum. Secure a consigliere on your team This is a respected senior insider who knows how things work and can navigate land mines. She knows the key players, predicts how they react, and helps broker agreements.

Leverage your angels and silence your devils Identify your supporters and detractors. Mobilize your supporters to build a broad base of support and go on the offense before the detractors have a chance to collect.

Bratton faced resistance from the courts, who worried about their capacity to handle all the crime the police were bringing in. Faced with public humiliation, the courts backed down. If your blue ocean strategy upends the status quo, your team will be scared — for their jobs, their position in the organization. The further removed a person is from the strategic planning process, the more scared they will be.

The more scared the team is, the more likely they are to distrust, refuse to cooperate, and even sabotage. Because your team mobilizes your strategy, you need to communicate clearly. The further removed they are from strategic decision making, the more they need to be communicated to. Blue Ocean Strategy highlights the importance of procedural justice — people care as much about the fairness of the process as they do about the ultimate outcome.

Explanation Help people understand why decisions are made as they are. If layoffs have to happen, state this early and clarify the impact to control the messaging.

Clear expectations Make clear how employees will be evaluated. Specify what successful goals are, and what constitutes failure. With this knowledge, workers can focus on execution rather than angst. Now consider the inverse of fair process, where decisions are made behind closed doors with no team input; strategies are stated and not explained; and expectations are unclear.

What do you expect to happen? The good old days were just fine — why do we need to change? Is the company in trouble? Workers will band together and feel their only recourse is to dig in and entrench against change. Once the new strategy is announced, skepticism has already been built in for weeks or months. Workers no longer trust management to care.

They rebel and sabotage the strategy, hoping its failure will lead management to return to the happy old days. Obviously this should be avoided. Build fair process into your execution plan from the very beginning. Like this summary? Have too much to read? You'll love my new book summary product Shortform. Even better, it helps you remember what you read, so you can make your life better.

What's special about Shortform: The world's highest quality book summaries - comprehensive, concise, and everything you need to know Interactive exercises that teach you to apply what you've learned Discussion communities - get the best advice from other readers Get the world's best book summaries now Chapter 9: Align Value, Profit, and People Propositions As discussed throughout Part Two of this Blue Ocean Strategy summary, a successful blue ocean strategy requires three pillars: 1 clear customer value, 2 profitability through strategic pricing and cost reduction, and 3 alignment with stakeholders like employees and partners.

Knocking out one of these pillars jeopardizes the long-term sustainability of the strategy. Failing the customer value piece is the most obvious failure if you build something no one wants. But the importance of the people proposition is less obvious, particularly for top-down managers, as employees and partners can sabotage the project without download-in.

With major cost savings inherent in the car design and broad popular support pre-launch, it seemed like a clear blue ocean win. However, it failed sales expectations. This dampened demand. The price, despite being the cheapest production car in the world, was still out of reach of its target motorscooter market.

Blue Ocean Strategy Books

The massive pre-launch hype caused overcommitment to manufacturing , rather than a leaner and iterative approach. Rather than fighting toe-to-toe with your competitors for market share, this strategy instead encourages businesses to seek out uncontested market space that they can have all to their own. When successful in this pursuit, it is possible to dramatically increase the value of a company while simultaneously making the previously identified competition irrelevant.

Blue Ocean Strategy is a book published in and written by W. You can think of blue ocean as space that has yet to have been explored by any other business — meaning it is a land full of opportunity. If you can manage to get your company into a blue ocean in the market, you will have all the opportunity in the world to make large amounts of money in a potentially short period of time.

Although there is an inevitability to having to compete in crowded markets, there are too many advantages to avoiding this situation to ignore the possibility of looking for blue space. In an already contested market, there is a natural cap in place on the potential of your business.

Even if you are able to carve out a respectable share of business for yourself, it is highly unlikely that you will rocket to the top of the business world in an already competitive space. The prices and profit margins are largely set before you even arrive, meaning your ceiling is relatively low.

While doing so is obviously a great challenge, the rewards can be many.

Blue Ocean Strategy

There are new markets being created all the time by the innovation of new products and services, and the businesses that are on the cutting edge of these markets tend to be some of the largest in the world. Organizations willing to go into untested territories are taking a big gamble, but that gamble sometimes pays off in a huge way.

Of course, locating the opportunity to create a blue ocean for your business is going to be the biggest challenge of all. There are four points that are presented within this book that will help you look for blue oceans around the edges of your business market.Organization barrier: Once a blue ocean strategy gets traction, incumbents start paying attention, but their organizational structure is woefully equipped to execute the new value curve.

Most businesses are focused on their competitors as they try to take control of a large slice of the market. This blog article is a overview of some of the key points of the book by W. It also spawned the App Store in , creating an ecosystem of developers that further increased the value of its hardware products.

Uber, due to massive consumer support of the service with Napster employees and adversaries. Maximizing a Blue Ocean Business To prolong sustainability of your blue ocean, 1 broaden your defensive moat to ward off competitors, and 2 renew the blue ocean with constant innovation. We pioneered the one-year intensive MBA, the use of simulaNons to complement case studies, and the idea of customised corporate educaNon.

It clearly had massive customer value — free music. Those types of oceans are blood free and lead to easy, safe sailing.

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