Blue ocean strategy for creating value of the organization examination of differentiation with red ocean strategy. In red oceans, industry boundaries are defined and accepted, and the. To understand red ocean strategy let us begin by defining blue ocean strategy. The books blue ocean strategy and blue ocean shift both provide insights on how you can create an offering so differentiated that you become a category of one and dominate a. Blue ocean strategy is where a company creates a completely new market space or market category. The blue ocean approach is a strategic tool that helps innovation strategists asses current and desired future strategic states whereasred. Pdf harvard business school press blue ocean strategy rajeh. Itu sebabnya kini hadir istilah baru yang disebut blue ocean strategy.
Blue ocean strategy is a new way of thinking, a new strategic mindset, a bold new path to winning the future. See comparison between red and blue ocean strategies here in one simple table. It is aimed at enriching blue ocean strategy with a case study in which we see the process of creating a blue. For example, competing factors in blue ocean strategy are similar to the definition of finite and infinite dimensions in funky business. Generating new demand lies at the heart of any marketcreating strategy.
The mental models that undermine marketcreating strategies. 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 least in the beginning. Blue oceans denote all the industries not in existence today the unknown market space, unexplored and untainted by competition. 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. There is ample opportunity for growth that is both profitable and rapid. These competitors may possess a competitive advantage driven by cost, differentiation, or niche market strategies. Red oceans represent all the industries in existence todaythe known market space. Blue ocean strategy introduces analytical tools to minimize risk. Blue ocean strategy challenges companies to break out of the red ocean of bloody competition by creating uncontested market space that makes the competition. Blue ocean strategy adalah strategi menciptakan ruang pasar baru yang belum termanfaatkan. A marketcompeting strategy divides existing wealth between rival companies. How to create uncontested market space and make the competition irrelevant, a. But its much more common for a blue ocean to be created from within a red ocean when a company expands the boundaries of an existing industry. Sarah layton in blue ocean strategy on april 21, 2009.
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. Pdf blue ocean strategy for creating value of the organization. So blue ocean strategy is about how can any company or organization break out. As competition increases, prospects for profit and growth decline. The chart above summarizes the distinct characteristics of competing in red oceans red ocean strategy. List the factors the customer cares about, and current dimensions of competition. Want more secrets and tricks like the blue ocean strategy. We have come to think of them as red ocean traps, because they effectively anchor. Blue ocean strategy including examples and pdf download. Namun ternyata, kesuksesan sebuah perusahaan kini tidak lagi diukur dengan memenangi persaingan berdarahdarah di red ocean strategy. Innovation, new market space and creating demand are central characteristics. The result of the competition is destruction, which draws the analogy of red blood in.
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