Your email address will not be published. Despite its importance to British culture, the British teakettle industry had flat sales and shrinking profit margins until Philips Electronics, the Dutch consumer electronics company, came along with a teakettle that turned the red ocean blue. Given their growing success, they then developed the Blue Ocean Strategy Institute within INSEAD, the business school they belonged to, in order to manage help them propagate the idea further, investing particularly in the production of teaching materials. And it is only when all the members of an organization are aligned around a strategy and support it, … Drawing on this experience, they generalised the methods they had put in place at Philips, by studying the long run strategies of different organisations. Therefore, the Blue Ocean strategy is meant to create uncontested market space for a product, make the market competition irrelevant, create and capture a new demand, and finally to break the value cost trade off. Here are a few examples of blue ocean strategic moves from a variety of different industries and sectors. Blue oceans strategy is the approach that suggests a company is better off searching for ways to play in uncontested market places instead of engaging with competition in existing marketing spaces. Of the many strategic planning models that exist, the Blue Ocean Strategy could be considered the pacifist of the group. Limescale would never again be found swimming in British home-brewed tea. We use cookies to ensure you get the best experience on our website and continuing implies your consent -. Taking the example of a concept from management studies, Blue Ocean Strategy, he details how the success of the concept was dependent on the researchers’ ability to mobilize a range of actors over a period of decades. To accept cookies, click continue. 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. This text states that companies may be successful not so much by beating competition but rather by creating new markets. On average, research and development accounts for 2.3% of OECD countries’ GDP. - The 2-minute Ritual Proven To Eliminate 1 Pound Per Day Of Dangerous Belly Fat. This is a key principle of blue ocean strategy which sees low … The result: Philips created a kettle with a mouth filter that effectively captured the limescale as the water was poured. Public interest in the concept led to further consulting projects organised within a consulting network and to the publication of teaching cases aimed at training managers. A company is everyone from the top to the front lines. … I focused on this case because of its exceptional diffusion: the book outlining the theory was published in 2005 and has sold more than 4 million copies, the concept is taught in more than 2,500 universities in almost all countries over the world and its two authors, W. Chan Kim and Renée Mauborgne, were recognised in 2019 as the best management thinkers by the Thinkers 50 ranking. Furthermore, the aim of adopting this strategy is to search for a business in which very few firms operate and where there is no pricing pressure. Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. Note: This article gives the views of the author, and not the position of the LSE Impact Blog, nor of the London School of Economics. Updated/Revised 2016 The media industry in Pakistan is rapidly growing. To the kettle industry, the water issue was not its problem. It was the problem of another industry—the public water supply. Visit our sister blog LSE Review of Books. Myth: You must be first to market to have a successful blue ocean strategy. Guillaume Carton is an Associate Professor at Institut Supérieur de Gestion. October 01, 2011 Blue Ocean Strategic Moves - Philips Consider the British teakettle industry, which, despite its importance to British culture, had flat sales and shrinking profit margins until Philips Electronics, the Dutch consumer electronics company, came along with a … However, it was not until 2005, and not two but seven articles, that W. Chan Kim and Renée Mauborgne published Blue Ocean Strategy. The Nintendo Wii launched in 2006 and at its heart is the concept of value innovation. A researched case study on Blue Ocean Strategy Implementation. This reinforces the view that a long-term perspective of research and career paths is necessary to understand impact generation. When it comes to people, academics and practitioners equally contribute to performing realities. Thus, social scientists should rely on both, given their distinctive skills, activities and networks. have successfully applied the Blue Ocean Strategy. His research interests include management knowledge production, science and technology studies, and performativity studies. To do this requires specific skills. Philip Kotler explains how to create your marketing strategy according to 'Blue Ocean Strategy'. Taking a different approach, I have used the concept of perfomativity to analyse impactful social research. Almost all of us have been to beaches for a weekend getaway or long vacations! In this post, I want to consider the whole process of research impact and what insights from influential social research can tell us about the mechanisms underpinning impact. Blue ocean strategy is based on over decade-long study of more than 150 strategic moves spanning more than 30 industries over 100 years. You can also check out what all the fuss about Blue Ocean Strategy is here on their site. This includes putting increased emphasis on both primary and secondary prevention and population health management programs. In the 1890s, the horse and … It is about creating and capturing uncontested market space, thereby making the competition irrelevant. Please review our comments policy if you have any concerns on posting a comment below. The industry was kick-started on a strong growth trajectory as people began replacing their old kettles with the new filtered kettles. These therefore, give an organization an advantage in the market and put a company in a new growth path different from its competitors. Blue Ocean Strategy is considered to be one of the main pillars in the field of strategic management. To make its digital market strategy sustainable and successful in market. They consolidated their consulting activities within a series of Blue Ocean Strategy Centres dispersed all around the world, worked for several governments including the USA, Singapore or Malaysia, and published a second book in 2017 entitled Blue Ocean Shift. To do otherwise risks recognising only instrumental ‘quick-fix’ solutions. Second, to benefit from this transformational power, concepts need large amounts of time! Blue Oceans sound like the place to be, right? Thus, if social scientists want their ideas to be transformative, they might keep in mind that generating impact is not only about getting the best idea, but also and more importantly about investing in people and objects. So the strategy that I am going to share with you is called the Blue Ocean Strategy, derived from the Book Blue Ocean Strategy. We use cookies on this site to understand how you use our content, and to give you the best browsing experience. Select from the icons below to learn more. In other words, impact is less about translating abstract ideas into practical ones and more about mobilising different actors and objects that give life to an idea. To reconstruct market boundaries and create new market space, think about applying path four of blue ocean strategy’s six paths framework. It is the idea of trying to find market spaces that are free of competitors by creating and caputuring new demand, making the competition irrelevant. To illustrate how Blue Ocean Strategy can be used in a variety of industries, we’ll cover three very different industries – automobiles, computers, and movie theaters. There is a 21-year timespan between W. Chan Kim’s PhD viva and the publication of Blue Ocean Strategy. Developing a concept is a long and chaotic process that cannot always be assessed within normal research assessment regimes. Blue Ocean Strategy introduces analytical tools to minimize risk. The first example of blue ocean strategy comes from computer games giant, Nintendo, in the form of the Nintendo Wii. Blue Ocean Strategy Example 1: Automobile Industry. This strategy encourages you to suspend all that you know about building success to take a leap into a new way of thinking about business strategy. Chris Cvitanovic and myself have previously discussed how boundary-spanning roles necessitate the ability to speak the language of both practice and research. Philips sees significant value in more integrated forms of healthcare, unlocking the power of data and artificial intelligence at the point of care, while at the same time optimizing care delivery across the health continuum. NetJets reconstructed market boundaries to create a blue ocean by looking across alternative industries. #BlueOceanShift and #BlueOceanStrategy are worldwide business strategy bestsellers, helping you to move beyond competing and start creating your #blueocean. Blue ocean strategy is based on over decade-long study of more than 150 strategic moves spanning more than 30 industries over 100 years. LG Electronics: The Blue Ocean Strategy “A company is not only top management, nor is it only middle management. Blue Ocean Strategy is a book published in 2004 written by W. Chan Kim and Renée Mauborgne, professors at INSEAD, and the name of the marketing theory detailed on the book. In short, Red ocean strategy refers to competing for the existing marketplace where blue ocean strategy denotes making new uncontested marketplace. This blog post is based on the author’s article, “How assemblages change when theories become performative: the case of the Blue Ocean Strategy”, published in Organization Studies. Your email address will not be published. Featured Image Credit adapted from Berenice Melis, via Unsplash (CC0 1.0). For instance, in the case of Blue Ocean Strategy, the book was not simply a product of academic thinking, but had involved practitioners and consultants from its inception, who in turn were instrumental in applying and disseminating the concept globally. The term impact ultimately signifies the process by which an abstract idea for good or ill becomes a practical reality. Blue ocean is a slang term referring to the uncontested market space of an unknown industry or innovation. Profit Model of Blue Ocean Strategy 30. To find out more about cookies and change your preferences, visit our, Series: Rapid Response Publishing in Covid Times, Subscribe to the Impact Blog via Email or RSS, How assemblages change when theories become performative: the case of the Blue Ocean Strategy, Creative Commons Attribution 3.0 Unported. Our roadmap to win identifies the key priorities for the next phase of our journey in health technology. After two Harvard Business Review articles authors usually publish a book. What does Blue Ocean Strategy tell us about the impact of social research? The case is so developed as to give students an insight into the causes that led to Kinetic and Honda parting ways. Blue ocean strategy, is a result of study of decade-long study of more than 150 strategic moves spanning more than 30 industries over 100 years (1880-2000). Charting the impact of Blue Ocean Strategy. Finally, creating change involves a reliance on a large array of people and objects. Whilst good ideas are often believed to find their own audience, Guillaume Carton argues that for research and ideas to achieve impact they require mobilization. It was the beginning of a series of publications aimed primarily at practitioners, which publicised the strategy tools they had begun to develop. It is designed to improve the way we perform, so we deliver higher levels of customer value and quality across the board, as well as increasing shareholder value. Required fields are marked *. Chan Kim and Renée Mauborgne wrote a book called “The Blue Strategy” in 2004 which presents analytical frameworks and tools to foster an organization’s ability to systematically create and capture “blue oceans”. Based on the discussion, it is safe to say that the blue ocean is a better strategy that can bring fewer … The case study examines in detail the causes for the break up of the Kinetic Honda joint venture. By thinking in terms of solving the major pain points in customers’ total solution, Philips saw the water problem as its opportunity. It took a lot of time before Blue Ocean Strategy proved to be impactful: before working on the concept, W. Chan Kim and Renée Mauborgne authored 18 academic articles (on other topics), authored more than 12 publications in Harvard Business Review and it led to the publication of only two books! Impact therefore not only requires working to create the best academic idea, but also working to give that idea traction. Due, to blue-ocean strategy, yet a lot has to be research regarding the market trends by Philips. It caught the attention of many scholars, academic researchers, and professional business parties as well as entrepreneurs. To do so, I took as an example the strategy concept Blue Ocean Strategy, which encourages managers to create new market spaces, rather than competing within existing ones. This will also give you a good introduction to the concept as well as information on how companies such as CEMEX, Apple (Itunes), Philips, Raulph Lauren and even Viagra (yes, those annoying spammers!) Philips’ blue ocean strategic move in the teakettle industry is an example of looking across complementary product and service offerings, path four in the six paths framework. Retracing the historical development of the concept, Blue Ocean Strategy originates from a consulting project that took place between 1990 and 1996 at Philips, which brought together academics, consultants and employees and aimed at transforming the organisation. Hence, it was crucial to deeply analyze and develop BOS according to previous conducted studies. For instance, as Toby Green suggested in a recent post, moving from research to impact goes well beyond publication. The case also throws light on the post break-up strategies of the two companies. 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