...counterproductive ways, negatively influencing their coworkers, missing days on the job, and driving customers away through poor service. Gallup estimates that the ÎÎO"/« group alone costs the U.S. economy around half a trillion dollars each year. What's the reason for the widespread employee disengagement? According to Gallup, poor leadership is a key cause. Most executives—not just those in America—recognize that one of their biggest challenges is closing the vast gulf between the potential and the realized talent and energy of the people they lead. As one GEO put it, "We have a large workforce that has an appetite to do a good job up and down the ranks. If we can transform them—tap into them through effective leadership—there will be an awful lot of people out there doing an awful lot of good." 62 Harvard Business Review May 2014 Of course, managers don't intend to be poor leaders. The problem is that they lack a clear understanding of just what changes it would take to bring out the best in everyone and achieve high impact. We believe that leaders can obtain this understanding through an approach we call "blue ocean leadership." It draws on our research on blue ocean strategy, our model for creating new market space by converting noncustomers into customers, and applies its concepts and analytic frameworks to help leaders...
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...Article Review Kim Chan, W. & Mauborgne, R. Blue Ocean Leadership. Harvard Business Review, May 2014. Unlike the articles I had previously read on the topic of management and developing others, this one does not focus on behavioral styles, but rather on the actions that managers should take to motivate employees. I understand that adopting an effective behavioral style is a key element for success as a manager. However, this requires both time and practice and above all willingness from the managers themselves to change. This article presents solutions that can be adapted “rapidly and at low cost” in organizations, and which can bring very effective results. It achieves this because it does not require leaders “to alter who they are”. The article starts with an alarming statement: “Just 30% of employees are actively committed to doing a good job”. Therefore, there are in each workplace great resources of unused potential which is described as the “Blue Ocean”. One of the reasons for this lack of motivation is poor leadership. Leadership is described in the article as a product that is sold by leaders: Employees “buy” or “don’t buy”. The “Blue Ocean Leadership” approach intends to define the actions that direct reports expect their managers to take to make them “buy” their leadership. The leaders’ actions can be categorized into four types. The ones they “need to eliminate, reduce, raise and create to convert disengaged employees into engaged ones”. This must be identified...
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...COLOURS WHAT IS PINK? A ROSE IS PINK BY THE FOUNTAIN’S BRINK. WHAT IS RED? A POPPY’S RED IN IT’S BARLEY BED. WHAT IS BLUE? THE SKY IS BLUE WHERE THE CLOUD FLOAT THROUGH. WHAT IS WHITE? A SWAN IS WHTTE SAILING IN THE LIGHT . WHAT IS GREEN? THE GRASS IS GREEN WITH SMALL FLOWERS BETWEEN. WHAT IS VIOLET? CLOUDS ARE VIOLET IN THE SUMMER TWILIGHT . WHAT IS ORANGE? WHY, AN ORANGE, JUST AN ORANGE! -CHRISTINA ROSSETTI- FLINT AN EMERALD IS AS GREEN AS GARSS, A RUBY RED AS BLOOD; A SAPPHIRE SHINES AS BLUE AS HEAVEN; A FLINT LIES IN THE MUD. A DIAMOND IS A BRILLIANT STONE, TO CATCH THE WORLD’S DESIRE; AN OPAL HOLDS A FIERY SPARK; BUT FLINT HOLDS FIRE. -CHRISTINA ROSSETTI- THE WORKS OF GOD ALL THINGS BRIGHT AND BEAUTIFUL, ALL CREATURES GREAT AND SMALL, ALL THINGS WISE AND WONDERFUL- THE GOOD GOD MADE THEM ALL. EACH LITTLE FLOWER THAT OPENS, EACH LITTLE BIRD THAT SINGS- HE MADE THEIR GLOWING COLOURS, HE MADE THEIR TINY WINGS. THE PURPLE-HEADED MOUNTAIN, THE RIVER RUNNING BY, THE MORNING AND THE SUNSET THAT BRIGHTEN UP THE SKY; THE TALL TREES IN THE GREENWOOD, THE PLEASANT SUMMER SUN, THE RIPE FRUITS IN THE GARDEN- HE MADE THEM EVERYONE. HE GAVE US EYES TO SEE THEM, AND LIPS THAT WE MIGHT TELL, HOW GREAT IS GOD ALMIGHTY, WHO HAS MADE ALL THINGS WELL. -C.F. ALEXANDER- THE WORLD IS MINE ...
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...Blue Ocean Strategy MARKETING Individual assessment: Blue ocean strategy Do you think that the blue ocean strategy is a relevant tool to generate innovation, value and new customer? Summarize the benefits and the limitation of this strategy. What can corporate do to minimize the impact of this unavoidable imitation/competition? 1. Blue Ocean Strategy (BOS): Benefits, limitations and risks Blue Ocean Strategy signifies all the industries which are not in existence today. In this kind of strategy, the market spaces are unfamiliar, unpolluted by competition. In this strategy, the demand is created rather than fought over. There is sufficient chance for growth which is swift and profitable. Competition is inappropriate because the rules of the game are waiting to be set. 1.1. Benefits of Blue Ocean Strategy The Blue Ocean Strategy is appropriate tool to generate innovation, value and new customers. Considering the condition of CLV it is suitable for this organization to go for it to generate value and innovation. This strategy encourages organizations to attain new ways of thinking which are different than the competitors. With the help of this strategy, organizations can create a new area of demand namely a Blue Ocean and get rid of an intensely competitive market namely a Red Ocean. When any organization successfully creates new markets without competitors they can have a clear Blue Ocean. According to this strategy the organizations must not only focus on...
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...The Blue Ocean strategy in marketing is a unique approach to building a customer base. Instead of trying to compete in an overcrowded marketplace with existing companies, a Blue Ocean strategy seeks to build an entirely new market area. With the rapid growth of technology and globalization, the importance of a Blue Ocean strategy has grown in recent years. The “Blue Ocean strategy” is a term that originated from the 2005 book, The Blue Ocean Strategy, by W. Chan Kim and Renee Mauborgne that describes the opportunities of vast, untapped market spaces, or "Blue Oceans," that can be developed by expanding market boundaries or launching new industries. The concept of "Blue Ocean strategy" was first acknowledged by the business world in 2005 when the correspondence was initially released. In essence, Blue Oceans are associated with high potential profits. Since it’s released it has been translated in 43 languages. The authors discuss the benefits for business owners to leave the Red Ocean, characterized by the bloody, shark-infested waters of competition, and enter the Blue Ocean, where there is no competition and limitless space to create something new. According to inserts found throughout the book, it is important to evaluate your business to determine whether you should rethink your market strategy and enter the "Blue Ocean." The most important feature of Blue Ocean strategy is that it disregards the basic principles of conventional strategy: that a trade-off exists between...
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...Blue Ocean Strategy, a book by W. Chan Kim and Renee Mauborgne, develops and explains how to beat the competition by reaching beyond it into new unexplored markets. The authors use the metaphor of the blue ocean as a direct contrast to red oceans. Red oceans are the battling grounds for typical market competition where firms fight for an already defined and stagnate market. Blue oceans, on the other hand, describe a strategy that breaks away from the blood red ocean into clear, uncharted oceans, or new markets (see Appendix A for the details of the differences). The authors studied the business launches of 108 companies, more than 150 strategic moves from 1880 to 2000, and more than 30 industries to uncover the key traits and practices of what they call "Blue Ocean Strategy." Kicking off the book with four analytical tools that promise to help firms find and exploit untapped markets, the authors offer a step by step approach, comprised of six principles, on how to break away from the competition of red oceans and execute a blue ocean strategy. They show how and why a blue ocean strategy leads to a market where competition is - for a time - obsolete. Each principle is explained and supported by real world examples from such companies as Ford, Cirque du Soleil, Dell Computers, Casella Wines, and even the New York City Police Department. The chart, figure 1, illustrates both the concept of blue ocean strategies, and the organization of the book, Blue Ocean Strategies. Lady...
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...Blue Ocean Strategy Paper Anthony Dobson MKT/421 July, 2014 Nickolas Skelton Blue Ocean Strategy Paper A blue ocean strategy can be described as the ability to create uncontested market space and render the competition obsolete. This strategy provides a systematic way to unlock the ocean of unrealized talent, opportunities, and energy within an organization quickly and at a low cost. It can achieve all of this from a management standpoint while preserving time and efficiency. The aim of a blue ocean strategy is not to out-perform the competition in the existing industry, but to create new market space or a blue ocean, thereby making the competition irrelevant. While innovation has been seen as a random/experimental process where entrepreneurs and spin-offs are the primary drivers this strategy offers systematic and reproducible methodologies and processes in pursuit of blue oceans by both new and existing firms. Frameworks and tools within blue ocean strategies are designed to be visual in order to not only effectively build the collective wisdom of a business but also to allow for effective strategy execution through easy communication. Blue ocean strategies cover both strategy formulation and strategy execution. The three key conceptual building blocks of blue ocean strategy are: value innovation, tipping point leadership, and fair process. While competitive strategy is a structuralism theory of strategy where structure shapes strategy, blue ocean strategy is a Reconstructionist...
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...Blue Ocean Strategy Robert Lowe Principles of Marketing December 2, 2013 Abstract For a long time many businesses have use a military strategy in order to find profit in an existing market. Fighting for a competitive advantage and battling competitors over a piece of the profit. Taking this head-on approach only leads to an overcrowded market with a shrinking profit pool. This is what the book calls a “red ocean”. Blue Ocean on the other hand wants you to look outside the box and make the competition irrelevant. In the future companies will not succeed battling competitors, but instead finding uncontested market space ripe for growth. Swimming in an area that only has a few swimmers is a lot better than swimming with the sharks. This book shows you six principles that will help companies create a Blue Ocean Strategy. The authors use data collected from over thirty different industries, and have studied more than hundred different strategies from the last century. Creating Blue Oceans It is suggested that companies and organizations need to create demand in uncontested market space, rather than competing head-to-head with competitors in an existing market space. These two strategies are called “Blue oceans” and Red Oceans”. Red oceans are existing companies in the market. Their goal is to compete with competitors for a bigger slice of the pie. This strategy leads to overcrowded markets which make the profit shares shrink. Blue oceans is the opposite, demand is created...
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...STRATEGIC MANAGEMENT ASSIGNMENT # 5 BLUE OCEAN STRATEGY October 24, 2014 Case Study Question 1 Critically analyze the case. Solution 1 In this case study, the author has discussed different methods and strategies which global firms are adapting to achieve success and to grow exponentially in their relevant industries. This article has focused on two strategies, Red Ocean and Blue Ocean particularly. These strategies are used to define the environment a firm is operating in and to figure out whether they are creating value for the firm or not. Blue Ocean Strategy is basically to create new uncontested markets solely through innovation and creativity where demand is created and derived from the market. Whereas Red Ocean refers to competing in the existing share of market with your rivalry firms within set boundaries to gain a bigger portion of the pie. Researches done on various firms following the Blue Ocean strategy have shown that firms which have invested and focused on areas which customers value the most have achieved huge profits mainly through cost leadership. Red Ocean strategy offers high value at a higher cost or can offer low value at a lower cost, this is a tradeoff where the Blue Ocean strategy has an advantage as its purpose is to create value and offer newer products/services which have not been previously introduced in the market or to a specific untapped market segment. Blue Ocean strategy not only requires technological advancements but also...
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...Blue Ocean Strategy Paper The blue ocean strategy in marketing is a business theory that helps search for ways to gain uncontested market space, this is seen as a unique approach to building a customer base. The following essay will analyze the blue ocean strategy and its importance, while providing a product or service that might be considered a blue ocean strategy. Lastly, an alternative red ocean move for the same product or service along with the pros and cons of that strategy will be discussed. Blue Ocean Strategy was developed by W. Chan Kim and Renee Mauborgne. “It describes how companies traditionally work in "red ocean" conditions, where businesses viciously fight against each other for a share of the marketplace. Instead, according to the blue ocean strategy, organizations should find a way to work in a marketplace that is free of competitors.” ("Blue Ocean Strategy", 2015). The purpose of the Blue Ocean strategy is to create an uncontested market place while making the competition irrelevant. By doing so this creates and captures new demands and breaks the value-cost trade off. In result, this aligns the whole system of a business’s activities in pursuit of differentiation and low cost. This strategy is important for businesses because in order to make your competition irrelevant, you must leave the red ocean and go to the blue ocean. Once in the blue ocean, you only need to create demand for your product or service. Examples of Blue Ocean Moves There are...
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...Blue Ocean Strategy: Article Summary Abstract The Blue Ocean Strategy (BOS) is a business strategy about capturing uncontested market space, thereby making competition irrelevant. The corner-stone of BOS is 'Value Innovation'. A blue ocean is created when a company achieves value innovation that creates value simultaneously for both the buyer and the company. The innovation (in product, service, or delivery) must raise and create value for the market, while simultaneously reducing or eliminating features or services that are less valued by the current or future market. The "ocean" in the title refers to the market or industry: • Blue Oceans are untapped and uncontested market, which provides little or no competition for anyone who would dive in, since the market is not crowded. • Red Oceans, on the other hand, refers to a saturated market where there are fierce competitions, already crowded with companies providing the same type of services, producing the same kind of goods. The idea is to do something different from everyone else, produce something that no one has yet seen, thereby creating a blue ocean. Blue Ocean Strategy: Article Summary BOS explains that rather than competing within the confines of existing industry or trying to steal customers from rivals (Red Ocean Strategy), uncontested market space should be developed that makes competition irrelevant. Red oceans are all the industries in existence today—the known market space. In the red...
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...leading mobile phone companies such as Samsung, LG Electronics and SonyEricsson are rushing to introduce strategic handsets, aiming to win a larger chunk in the market. In the fiery competition space, LG Electronics has introduced its first black-label (premium label) mobile phone which called Ў§ChocolateЎРfor the competition, and tried to use its new marketing strategy for spreading into a new market place that no one has took up before. This report first of all will start from over viewing LG Company and its strategy by present. Secondly will go into specifically to analyze the strategy which on launch its Ў§ChocolateЎРmodel and its competitors, and also to analyze the feasibility of its strategies through understanding its strength and weakness. Finally, the report will apply the key factor to its global capability, to discuss the further modification and development opportunity. LG Company Overview In 1947, LG Group founder Koo In-hoe established Lucky Chemical Industrial Corp. (currently LG Chemicals) in South Korea, LG initially manufactured a cosmetic called Lucky Cream. After 50s to the end of 70s, LG established its other business more widely into different areas. Now LG is a manufacturer which field in three main businesses which are Electronics, Chemicals, and Telecommunications & Services (LG official website). The company is based in Seoul, South Korea, they are operating around 130 subsidiaries around the world with around 120,000 employees in 2005...
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...S p r i n g 2 0 0 5 | V o l . 4 7 , N o . 3 | R E P R I N T S E R I E S Canifgernia ala oment M Review Blue Ocean Strategy: From Theory to Practice W. Chan Kim Renée Mauborgne © 2005 by The Regents of the University of California Blue Ocean Strategy: FROM THEORY TO PRACTICE W. Chan Kim Renée Mauborgne or twenty-five years, competition has been at the heart of corporate strategy. Today, one can hardly speak of strategy without involving the language of competition: competitive strategy, competitive benchmarking, building competitive advantages, and beating the competition. Such focus on the competition traces back to corporate strategy’s roots in military strategy. The very language of corporate strategy is deeply imbued with military references—chief executive “officers” in “headquarters,” “troops” on the “front lines,” and fighting over a defined battlefield.1 Industrial organization (IO) economics gave formal expression to the prominent importance of competition to firms’ success. IO economics suggests a causal flow from market structure to conduct and performance.2 Here, market structure, given by supply and demand conditions, shapes sellers’ and buyers’ conduct, which, in turn, determines end performance.3 The academics call this the structuralist view, or environmental determinism. Taking market structure as given, much as military strategy takes land as given, such a view drives companies to try to carve out a defensible position against...
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...Blue Ocean Strategy MKT/421 Blue Ocean Strategy Blue Ocean Strategy is a book written by W. Chan Kim and Renee Mauborgne. It describes how organizations should try to find a way to work in a market place that has not a lot of competition. The authors write about how main companies can succeed without battling competition. The company will succeed by creating a “blue ocean” market space ripe for growth. The strategy behind Blue Ocean is to find differentiation. Theoretically it helped a company not to outperform the competition but to create a new market space. This makes the competition irrelevant. Blue Ocean Strategy is important to businesses who want to sell their product with little or no competition and is useful for new businesses that have little or no money. Netflix came out in 1999 and is an online DVD rental service whose strategy and market success were predicted on providing an expansive selection of DVDs, an easy way to choose movies, and fast, free delivery via postal mail. The company’s strategic intent was to be the world’s largest and most influential movie supplier. The goal of the company was to make it a lot easier for customers to select and rent movies and to eliminate the hassles involved in picking up and returning them. Its strategy incorporates customer convenience and a wide selection of entertainment selections. Netflix provides extensive information to its customers to help them make good selections and identify films that they may like to...
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...Blue Ocean Strategy Ashleigh Philbrick MKT 421 February 18th, 2015 Professor Edward Mendicino Blue Ocean Strategy The blue ocean strategy in marketing is a unique approach to building a customer base. Rather than try to compete in a crowded marketplace with existing companies, a blue ocean strategy looks to build an entirely new market segment that has no other existing firms. With the rapid growth of technology and globalization, the importance of a blue ocean strategy has grown in recent years. The following essay will analyze the blue ocean strategy and offer suggestions on how it can be employed in the modern business environment. What is a Blue Ocean Strategy in Marketing? Companies must consider the four Ps of marketing when developing a new offering, which include product, placement, price, and promotion. In order to compete successfully, it is necessary to give consumers a certain value proposition. For example, a firm can offer a product at a lower price or at a higher quality than what is presently offered by other firms. But what if a firm could avoid having to deal with competition altogether? This is exactly what the blue ocean strategy attempts to do – create a new marketplace that is free of competitors. Marketers build an entirely new product or service that is currently unknown to consumers. It is necessary to thoroughly educate the public about the new product in order to gain interest and confidence. Once this has been completed, the new product will be positioned...
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