The strategy canvas the strategy canvas is both a diagnostic and an action framework for building a. 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. By creating this plot, you can find imbalances in your strategy, such as only raising and creating which leads to overengineering and trying to be the best or only eliminating and reducing which leads to mere price competition. Formulating blue ocean strategy 3reconstruct market boundaries 47 4focus on the big picture, not the numbers 81 5reach beyond existing demand 101 6 get the strategic sequence right 117 fmkim. Four actions framework of blue ocean applied to jet blue. The fouractions frameworkon blue ocean strategy to reduce, create, raise and eliminate industry practices to create a. This analytic tool complements the four actions framework.
Just think of its initial blue ocean shift in book retailing that separated it from the pack with its offering of. Chan kim and renee mauborgne is used to reconstruct buyer value elements in crafting a new value curve or strategic profile. While blue ocean strategy helped to identify new avenues for strategic success, it fell short on providing the actual steps needed to jump from a crowded marketplace into the fabled blue ocean of the title. Blue ocean shift, however, provides a clear process for business identifying opportunities and developing plans for. This framework is used to break the tradeoff between differentiation and low cost to create a new value curve, using 4. Strategy canvas four actions framework errc grid six paths framework. Elements of the strategy canvas of blue ocean it lays the groundwork visually between firms for the development of marketing goals and objective that follow.
Blue ocean strategy including examples and pdf download. Made by group d of the minor global trendwatching 2015. The premise of the book is that companies can succeed by creating. The four actions framework aids in eliminating the tradeoff between differentiation and low cost within a company. Four actions framework blue ocean strategy shortform blog. Blue ocean strategys four actions framework poses four central questions that let companies break the valuecost tradeoff and create a blue ocean. 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. All in all, blue ocean strategy is a book worth reading. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Blue ocean strategy chapter 14 the four action framework chapter two. Chen, information systems theory and practices blue ocean strategy.
Build your blue ocean strategy with the four actions framework. First and foremost on their list is a tool used to break out of competition and make competition irrelevant called the strategy canvas. May 26, 2015 summary of the first four chapters of the international bestseller blue ocean strategy. This tool is the central diagnostic and action framework for building a compelling blue ocean strategy. So also are the four action framework of eliminate, reduce, raise and create industry factors in order to create this. Named a best book of 2017 by amazon winner of the best leadership and strategy book of 2017 by 800ceoread kim and mauborgne have followed one blockbuster book with another.
Value innovation strategy competes in an uncontested market space. Using our healthcare strategy canvas and the four actions framework, we can identify areas ripe for blue ocean strategies that can benefit from blockchain technologies. May 30, 2017 to join the free indie business book club, click here. Based on best selling book, blue ocean strategy, this powerpoint presentation provides a systematic approach to making the competition irrelevant. The four actions framework and the eliminatereduceraisecreate grid are almost a straightforward stepbystep strategy which offers an answer to all four parts of the marketing mix. How wawa seized new growth in the retail industry youtube.
On a graph, the horizontal axis depicts a range of factors that a company competes on while the vertical axis shows the offering level received by the buyers. It allows leaders to gain a clear understanding of just what changes it would take to bring out the best in their people, while conserving their most precious resource. 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. Blue ocean shift is the essential followup to blue ocean strategy, the classic 3. The four actions framework guide your student life with this. Blue ocean strategy is a bad book, but it is not your usual bad book. 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. Blue ocean strategy is a book published in 2005 and written by w. 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. Sep 26, 2016 the strategy canvas provides a highly visual tool to help look at future options. In their 2017 new york times bestselling book, blue ocean shift, kim and.
Remember what the product that company delivers is all about. 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 industrys strategic logic. 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. Blue ocean strategy on jet blue case study by neil k.
Summary of the first four chapters of the international bestseller blue ocean strategy. The blue ocean strategy book itself offers a variety of tools and frameworks for a. The fouractions frameworkon blue ocean strategy to reduce, create, raise and eliminate industry practices to create a blue ocean fromthe industry red ocean. The sequel to blue ocean strategy, blue ocean shift outlines a methodology to identify blue ocean opportunities. Oct 08, 2015 in part three, the authors discuss their idea about strategy execution that is derived by trust and commitment among all involved people to execute the agreedon strategy.
To join the free indie business book club, click here. 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. Blue ocean strategy can be found on amazon blue ocean strategy. To illustrate their ideas, chan kim and mauborgne used several reallife examples in their book. Chan kim and mauborgne have therefore constructed more frameworks that can help with this process like. The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents.
The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. 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. It pushes companies not only to ask the questions posed in the four actions framework but also to act on all four to create a new value curve or strategic profile, which is essential to unlocking a new blue ocean. Examining a wide range of strategic moves across a host of industries, these presentation slides highlight the six principles that every company can use to successfully formulate and execute blue ocean strategies. The blue ocean strategy tools strategy canvas this tool serves as both a diagnostic aid and an action framework for creating blue ocean strategies.
The content of the book is divided into three parts, with the first part presenting the foundations of blue ocean strategy by emphasizing the creation of blue oceans and the analytical tools and frameworks to make it happen. Reviewing the blue ocean strategy universiteit twente. Healthcares blue ocean strategy for blockchain cio. Use our free blue ocean 4 actions framework template to create, collaborate on.
You may or may not agree with the central philosophy, but you will be inspired. Professor of mis school of business administration gonzaga university spokane, wa 99258 usa. The strategy canvas the strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. Mar 15, 2014 four actions framework of blue ocean applied to jet blue 1. 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. Four action framework eliminatereduceraisecreate example. About the blue ocean 4 actions framework template who created blue ocean 4 actions template. Chan kim and renee mauborgne have created a comprehensive set of analytic tools and frameworks to create blue oceans of new market space. Drawing on more than a decade of new work, kim and mauborgne show you how to move beyond competing, inspire your peoples confidence, and seize new growth, guiding you step by step through how to take your organization. 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. In part three, the authors discuss their idea about strategy execution that is derived by trust and commitment among all involved people to execute the agreedon strategy. The six paths framework in formulating blue ocean strategy.
Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. 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. A structured process of visual awakening, exploration, strategy fair and communication pushes a companys strategy towards blue ocean. The blue ocean strategy tools four actions framework. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. Blue ocean shift takes the groundbreaking principles of their original work and offers a smart, systematic plan to help any organization move from competing in existing markets to creating new markets altogether. The blue ocean strategy four actions framework also called eliminate reduce raise create grid errc grid is a complementary tool to the strategy canvas. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Bos four actions framework errc grid innovating now. Dec 14, 2017 when wawa found itself in a red ocean of competition following the financial crisis in 20078, it changed strategy. Blue ocean strategy 1creating blue oceans 3 2 analytical tools and frameworks 23 part two. Chen, information systems theory and practices red ocean vs. Blue ocean strategy is a strategy that advice companies to go to a new market, which interest. Remember what the product that company delivers is.
Apply the four action framework, deciding which key factors of the asis offering to eliminate, reduce, raise, and create. This is where the concept of value innovation is placed as the. In a blue ocean you change the playing field of strategy. 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. Together, they wrote a bestselling book blue ocean strategy. Once a blue ocean is discovered, management must clearly formulate the blue ocean strategy and take the actual actions to implement the new strategy. Everyday low prices and free delivery on eligible orders. Jul 16, 2015 the blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. To draw a blue ocean strategy, focus on the big picture and reach beyond existing demand, a good strategy has three qualities.
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. In this article you will learn how to make your competition irrelevant and have sales and profit. Blue ocean strategy formulation the four principles of. A crucial tool in this odyssey is the four actions. With the aid of the four actions framework figure 4 and the. Oct 09, 2017 a four action framework for blue ocean innovation. Effective blue ocean strategy should be about risk minimization and not risk taking.
Buy blue ocean strategy, expanded edition revised ed. A fouraction framework for blueocean innovation the globe. Four actions framework of blue ocean applied to jet blue 1. This means that the strategic aim of a company must be to create new and bestpractices rules by breaking the typical and existing valuecost trade off which eventually leads to creating the so called blue ocean. Blue ocean strategy is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. This blog article is a overview of some of the key points of the book by w. Chan kim and renee mauborgne focused on discovering the common factors that lead to the creation of blue oceans and the key differences that separate those winners from the mere survivors and those adrift in the red ocean. A fouraction framework for blueocean innovation the. Blue ocean strategy introduces analytical tools to minimize risk. 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. Blue ocean strategy challenges companies to break out of the red. Canon copier industry case study blue ocean strategy.
List the factors the customer cares about, and current dimensions of competition. When wawa found itself in a red ocean of competition following the financial crisis in 20078, it changed strategy. The four actions framework is used to help create value innovation and break the valuecost trade. 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. The blue ocean strategy was published in 2005 and authored by w. Furthermore the blue ocean strategy was awarded with. Shortform has the worlds best summaries of books you should be reading. Four actions framework template blue ocean framework miro. Blue ocean leadership involves a four step process developed by w. Analysis plandata usedkey assumptions analysis plan. Cirque du soleil is one of those examples they used to show the relevance of blue ocean strategy. Chan kim and renee mauborgne in the indie business book club. A good blue ocean strategy has items in each of the four grids.
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. It was clear from the outset that the authors were on to something special. In the prior book the tools were described, but this book follow up with instructions on sequencing and use. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Canon copier industry case study blue ocean strategy example. Blue ocean strategy presents a systematic approach to making the competition irrelevant and outlines principles and tools any organization can use to create and capture their own blue oceans.