Help you determine the optimal courses of action in the short and long term. A conceptual framework adapted from the blue ocean book was constructed to examine the application of the four action framework in creating the value innovation in malaysian public sector. A good blue ocean strategy has items in each of the four grids. The four actions framework is used to help create value innovation and break the valuecost trade. Help you determine which products warrant the biggest investments of resources and time. Business strategy frameworks provide the following benefits. In this article you will learn how to make your competition irrelevant and have sales and profit. Cirques four actions framework of their blue ocean strategy is as follows. Pdf blue ocean strategy as a tool for improving a companys. Blue ocean strategy and sustainability for strategic. The 4 actions framework is a core strategic tool used in blue ocean strategy. What is blue ocean strategy about blue ocean strategy.
Chen, information systems theory and practices red ocean vs. 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. Red ocean versus blue ocean strategy blue ocean strategy red ocean 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. Tipping point leadership and fair process in action 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. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. How to create uncontested market space and make the competition irrelevant. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. Blue ocean strategy chapter 14 the four action framework chapter two. Blue ocean strategy is a book published in 2005 and written by w. 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. Blue ocean strategy on jet blue case study by neil k.
Learn vocabulary, terms, and more with flashcards, games, and other study tools. Blue ocean strategy value innovation strategy canvas four actions. Healthcares blue ocean strategy for blockchain cio. In a blue ocean you change the playing field of strategy. Chen, information systems theory and practices blue ocean strategy. Blue ocean strategy can be applied across sectors or businesses. It was built on the notion of creating new markets where competition is irrelevant and the opportunity to grow and be profitable is unlimited. 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. To achieve this, it turned to the second basic analytic underlying blue oceans. Made by group d of the minor global trendwatching 2015. They assert that these strategic moves create a leap in value for the company, its buyers, and its employees while unlocking new demand and making the competition irrelevant. Blue ocean strategy errc the eliminatereduceraisecreate grid errc is complementary with the four actions framework.
What is the blue ocean strategy the term blue ocean was coined by two professors w. 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 strategy value innovation strategy canvas four actions framework errc grid six paths framework pioneer migrator settler map three tiers of noncustomers sequence of creating a blue ocean buyer utility map price corridor of the mass four hurdles to strategy execution tipping point leadership fair process. Remember what the product that company delivers is all about. To move forward with the model, and thus the companys new blue ocean strategy, the use of the strategic canvas can be one of the most crucial aspects of the planning of the strategy. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. Dec 11, 2019 the thinking that took place to move through visualization, the four actions, and the errc grid is manifest in the strategy canvas.
The fouractions frameworkon blue ocean strategy to reduce, create, raise and eliminate industry practices to create a. Blue ocean strategy formulation the four principles of. Blue ocean strategy powerpoint templates present better. About the blue ocean 4 actions framework template who created blue ocean 4 actions template.
Sep 24, 2017 in 2005, blue ocean strategy, expanded edition. Jul 17, 2018 this 9slide template will allow you to present your blue ocean strategy in a professionally designed slides. Apr 25, 2018 to move forward with the model, and thus the companys new blue ocean strategy, the use of the strategic canvas can be one of the most crucial aspects of the planning of the strategy. Bos four actions framework errc grid innovating now. Use our free blue ocean 4 actions framework template to create, collaborate on with your. A blue ocean strategy adopts the belief that markets and industries are not structured to beget competition. Blue ocean strategy, strategic thinking, red ocean, innovation, concept. Blue ocean strategy and sustainability for strategic management. The diagnostic framework is somewhat of a situational analysis.
Healthcares blue ocean strategy for blockchain increased commoditization drives leaders to search for uncontested markets with the desire to make 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. Create here, the idea is to create new industry factors that can generate value and anew market and were not offered before. Cirque eliminated the use of animals, the three ring circus experience and the star performers. To use this framework, youll want to ask yourself these questions. The four actions framework is used to help create value innovation and break.
Analytical tools and frameworks 29 the four actions. Professor of mis school of business administration gonzaga university spokane, wa 99258 usa. 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. Achieved via the delivery of features that have a highest marginal benefit to customer needs. 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. Eight key points of blue ocean strategy heres the essence of blue ocean strategy captured in eight key points. Applying the six paths framework to reconstruct market. But, lets first understand what is blue ocean and how it is different from red ocean strategy.
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. The blue ocean strategy canvas is a diagnostic tool and a framework for action that helps market researchers ask the right questions for supporting the development of a competitive strategy. Red oceans are all the industries in existence today the known market space. It captures the current state of play in the known market space. Blue ocean strategy including examples and pdf download. Create here, the idea is to create new industry factors that can. Blue ocean strategy summary and examples khai biau yip. This is a focus on generating additional demand rather than improving or increasing supply through value innovation. How to create uncontested market space and the make. Applying the six paths framework to reconstruct market boundaries. Jul 16, 2015 the blue ocean strategy tools four actions framework. Value innovation strategy competes in an uncontested market space. 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 will make it easy for your audience to follow and understand the specifics of your proposed blue ocean strategy.
There may be times when your audience will ask you to email them a copy of your blue ocean strategy. Four actions framework of blue ocean applied to jet blue. Cirques four actions framework of their blue ocean. The canvas can be split between a diagnostic framework and an action framework. Value innovation strategy canvas four actions framework six paths. 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 landmark idea founded by w.
Pdf harvard business school press blue ocean strategy rajeh. Blue ocean strategys four actions framework poses four central questions that let companies break the valuecost tradeoff and create a blue ocean. I found that its a key tool in the blue ocean strategy process made up of the four strategic moves eliminate reduce raise create this tool helps create new buyer value elements thus breaking the tradeoff between differentiation and low cost. Theres one slide for each action of the four actions framework. How is blue ocean strategy different from a classic differentiation strategy. Blue ocean idea index the blue ocean idea index is a simple but robust test demonstrating how the sequence of utility, price, cost, and adoption form an integral whole to ensure commercial success through blue ocean strategy. 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. 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. I am looking for more information on the 4 action framework. May 26, 2015 summary of the first four chapters of the international bestseller blue ocean strategy. In this book summary of blue ocean strategy, well outline the key concepts, tools and tips from the book to help you create uncontested market space and make your competition totally irrelevant.
The fouractions frameworkon blue ocean strategy to reduce, create, raise and eliminate industry practices to create a blue ocean fromthe industry red ocean. A fouraction framework for blueocean innovation the. The concept of blue ocean is based on the idea that the business universe is made up. Miro has multiple exporting options, like saving to pdf. 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. Learn the concepts of tipping point leadership and fair process that ensure effective execution of blue ocean. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. The blue ocean strategy four actions framework also called eliminate reduce raise create grid errc grid is a complementary tool to the strategy canvas.
Chan kim and renee mauborgne in their book titled blue ocean strategy. New generation of management gurus announced thinkers50,united kingdom at thinkers50 we believe there is nothing so practical as a great idea, and the concepts and tools developed by kim and mauborgne have been utilized throughout the world, says thinkers50 cofounder stuart crainer. Help you attract groups of customers that you wouldnt attract using traditional strategies in your industry. The strategy canvas is a central diagnostic tool and an action framework of blue ocean. Four actions framework of blue ocean applied to jet blue 1. To aid you in completing this step and all the other steps in. Remember what the product that company delivers is. The six paths framework in formulating blue ocean strategy. 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. The framework redirects your attention towards the following six tenets under the blue ocean strategy methodology. Oct 09, 2017 a fouraction framework for blueocean innovation. The blue ocean strategy tools four actions framework. In this article, we will look at 1 what is a blue ocean strategy.
Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. Understanding the blue ocean strategy michael nugent. The thinking that took place to move through visualization, the four actions, and the errc grid is manifest in the strategy canvas. Strategy canvas the strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. The challenge is to develop a strategy and action plan to alter your current and predetermined trajectory. Four actions framework blue ocean strategy shortform blog. One way is to implement blue ocean strategy that allows businesses to. Blue ocean strategy actionable tools and frameworks. It pushes companies not only to ask all four questions in the four actions framework but also to act on all four to create a new value curve, essential for. The four actions framework is used to add new values to the strategic canvas value curve.
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