After having dealt with the blue ocean metaphor as well as having clarified the concept of value innovation, the chapter moves on by describing the basic analytical tools and frameworks that characterize the blue ocean strategy. Blue ocean pedagogical materials, used in over 2,800 universities and in almost every country in the world, go beyond the standard casebased method. Utilizing a blue ocean strategy to real business cases and in management as a part of lim assessment was considered a good. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Blue ocean strategy challenges companies to break out of the red ocean of bloody competition by creating uncontested market space that makes the competition irrelevant. Service nsw eliminate reduce raise create errc grid. The eliminatereduceraisecreate grid errc grid, a key blue ocean analytic, allows us to lay this out. This requires tools like strategy canvas, valuecurve, errc grid eliminatereduceraisecreate. Errc grid help company to remain on their competitive factors. Chan kim at the panasonics crossvalue innovation forum 2018 in tokyo. This theory is highly relevant in hypercompetitive environments. In my opinion, 2 of them are the ones we should be focusing on. Strategy canvas, four action framework, errc grid, pms map, buyer utility map. Finally, the eliminatereduceraisecreate grid can be applied to identify the new.
Application of blue ocean strategy to chinese 3g mobile. 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. Blue ocean strategy and new business models in the food. Were proud to have ted dackos application of the blue ocean process featured in our book blue ocean shift. Errc grid, kanvas strategi, blue ocean idea, blue ocean strategy, red ocean strategy, coffee shop. Aug 30, 2020 this step is about translating the big picture into practical blue ocean strategic moves by reconstructing your market boundaries using the 6 paths framework and identifying factors you can eliminate, reduce, raise and create using the four actions framework and errc grid. Eliminatereduceraisecreate grid errc grid blue ocean. We did this by making use of the blue ocean analytical tools and frameworks following the principles of the blue ocean strategy. Jan 18, 2021 the blue ocean eliminatereduceraisecreate errc grid posted on january 18, 2021 by hayim makabee during my studies at thepowermba, i had the opportunity to revisit the main concepts of the blue ocean strategy, which offers several tools for companies that want to improve their unique value proposition, by differentiating their products.
The strategy canvas the strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. Chan kim, renee mauborgne has been one of the great books on startups and errc grid, which it has emphasized on, is one of the magical steps any startup can go with. Blue ocean strategy namely the eliminatereduceraisecreate grid model since the main key ideas fall under the create grid where the innovative value takes place, as well as to create um. Apr 03, 2010 blue ocean strategy summary and examples 1. In this summary, well give a synopsis of the key concepts, tools and tips from the book. Pdf impact of blue ocean strategy on organizational. The blue ocean strategy and shift promote a fresh look at innovation webwire,japan to achieve high growth, organizations need to focus on noncustomers and capturing new markets instead of competing among crowds of challengers, advises w. Implementing blue ocean strategy arbor dakota strategies. Two key tools in this framework are the strategic canvas and the errc grid. Chan kim and renee mauborgne in their book titled blue ocean strategy. After having dealt with the blue ocean metaphor as well as having clarified the concept of value innovation, the chapter moves on. The eliminatereduceraisecreate errc grid can help you unlock a new blue ocean of uncontested market space. Raise, create grid for polo ralph lauren tshirts 42. Research gap blue ocean strategy in b2b sector which proves that blue ocean strategy is.
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. The eliminatereduceraise create grid errc grid, a key blue ocean analytic, allows us to lay this out. Pdf the influence of blue ocean strategy on organizational. Value innovation, strategy canvas, 4 actions framework, eliminatereduceraisecreate grid errc these frameworks and tools are designed to be visual in order to not only effectively build the collective wisdom of the company but also allow for effective strategy execution through easy communication.
Chan kim and renee mauborgne in their book blue ocean strategy. Blue ocean strategy airbnb social networking marketplace. Oct 28, 2019 all tools needed to create a blue ocean strategy are available for free on the official kimandmauborgne website. The eliminatereduceraise create errc grid is an essential tool of blue ocean strategy developed by chan kim and renee mauborgne. How to build blue ocean target noncustomers to create demand attract noncustomers strategy canvas overview errc grid reconstruct boundaries reconstruct market boundaries to seek more attractive offering plot strategy canvas to evaluate competition on offering draw eliminatereduceraisecreate grid to adjust product feature blue ocean strategy. Business development strategies from sun tzu to blue ocean. Yin and song 2008 in their book stated the characters of question. These elements can be used as an adjusting tool on your way to new market segments. This assignment describes the blue ocean strategy as an innovation concept. The blue ocean eliminatereduceraise create errc grid posted on january 18, 2021 by hayim makabee during my studies at thepowermba, i had the opportunity to revisit the main concepts of the blue ocean strategy, which offers several tools for companies that want to improve their unique value proposition, by differentiating their products. How to create uncontested market space and the make competition irrelevant 2005, blue oceans are associated with high potential profits. Blue ocean concepts, like all strategy frameworks, require strategy development, communication and execution.
Blue ocean strategy is arguably the strategy book of the century. The eliminatereduceraisecreate errc grid is one of the main tools of blue. The errc grid s key issues eliminate, reduce, raise and create are important elements of the blue ocean method. Kim and renee mauborgne published their groundbreaking book blue ocean. Your indispensable guide to learning the fundamentals of new market creation. Blue ocean refers to an uncontested market space of an unknown industry or innovation which has been able to provide unique set of values to the. The eliminatereduceraisecreate errc grid 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 unlocking a new blue ocean.
Chan ki slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Mar 20, 2020 the blue ocean strategy tagline for yellow tail might be a fun, simple wine that can be enjoyed everyday. Here is a quote from the authors of the blue ocean books. Many organizations struggle with one or more of these elements. How little things can make a big difference that certain people exercise. Porters five competition forces theory, blue ocean strategy, ipa. They are the authors of the international bestselling book blue ocean strategy which is recognized as one of the most iconic and impactful strategy books ever written. The blue ocean strategy gave a competitive advantage to the srikandi organizer by innovating in arranging bundling packages with. It is a simple matrix like tool that drives companies to focus simultaneously on eliminating and reducing, as well as raising and creating while unlocking a new blue ocean. Errc grid for the shorthaul airline industry eliminate. These are also the 2 tools i will be basing my case study upon.
Our multimedia cases and interactive exercises are designed to help you build a deeper understanding of key blue ocean strategy concepts, developed by worldrenowned professors chan kim and renee mauborgne. Download blue ocean strategy summary readingraphics. The application of the blue ocean strategy assessing. Four actions framework blue ocean strategy shortform books. Research gap blue ocean strategy in b2b sector which proves that blue ocean strategy is viable in b2b. If you didnt read the book, nor intend to, in very few words, an ocean is the. Errc grid is a tool for creating new values for the customer, communicating. Finally companies need to introduce new elements that the industry has never offered in an attempt to create new demand and value.
Luke medical center applying a blue ocean approach. May 31, 2016 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 book is built on a research of more than 100 years and 30 sectors in. What is the blue ocean strategy the term blue ocean was coined by two professors w. 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. Arbor dakota has developed a complete service offering around the principles of blue ocean strategy and blue ocean shift. Pdf the study deals with the blue ocean strategy bos that offers users a. As for those who choose a threestar hotel over a fivestar, price jumped out as the most common factor, followed by one other.
The aim of this study is to examine the controlchaos paradox stated in mintzbergs strategy safari book within the perspective. The eliminatereduceraisecreate errc grid is the matrix that help execute blue ocean strategy with the four action framework. Based on the errc grid, a new value curve can be plotted on the strategy. In our full blue ocean shift summary get complete summary here. There are some tool produce to help implement blue ocean strategy. Red ocean vs blue ocean strategy differentiation or low cost differentiation and low cost compete in existing market space create uncontested market space.
Errc grid by encouraging pt kintetsu world expres to ill in the scheme with actions of eliminating, reducing, raising, and creating, it can provide four beneits as follows. How to create uncontested market space and the make competition. Most of the material in this report is from the best selling book blue ocean strategy by w. The eliminate reduceraisecreate errc grid is one of the main tools of blue. The pdf download includes blue ocean strategy and examples. Oct 15, 2014 airbnbs blue ocean strategy can be analysed using the errc grid wherein business model eliminated the hassles of booking hotel rooms, quality of service, locations, excess cost, etc. The eliminatereduceraisecreate errc grid pushes companies not only to ask all four questions in the four actions framework but also to act on all four to.
Traditionally, in our strategy meetings we spent a lot of time talking about the competition, analyzing their trends, numbers, and drilling down into. An application of blue ocean strategy to techno economic. All tools needed to create a blue ocean strategy are available for free on the official kimandmauborgne website. Strategy canvas a diagnostic tool for building a compelling bos. Red ocean blue ocean tools value innovation strategy canvas. Research paperblue ocean strategy asian productivity. Pdf this study is based on the pros and cons of the blue ocean strategy bos that offers users a framework for. Eliminatereduceraise create errc grid 36 figure 10. Blue ocean strategy and new business models in the food industry. Blue ocean strategys errc grid drives companies to focus simultaneously on eliminating and reducing, as well as raising and creating to unlock a new market. The blue ocean strategy bos is however challenging companies to make competitors irrelevant. Dec 05, 2020 errc grid by encouraging pt kintetsu world expres to ill in the scheme with actions of eliminating, reducing, raising, and creating, it can provide four beneits as follows. The book summarises the thesis that organisations face two key choices. Chan kim and renee mauborgne professors based at insead, the leading european business school.
The eliminatereduceraisecreate errc grid is an essential tool of blue ocean strategy developed by chan kim and renee mauborgne. Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to. The eliminatereduceraise create errc grid 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 unlocking a new blue ocean. The purpose of the study is to apply the blue ocean strategy to polo ralph lauren t shirts to help them break out of the red ocean and create a new market space. Strategic management framework and traditional tools blue ocean vs. Blue ocean strategy errc grid on the other hand the model encourages companies to look for areas where they can raise the bar go well above the industry standard. The primary source of the following parts is the book the blue ocean strategy by chan. Errc grid eliminatereduceraisecreate grid strategy canvas. Here are some insights you can expect to takeaway from this powerful book. Blue ocean strategy how to create uncontested market space and make the competition irrelevant facilitators. This work has been submitted to chesterrep the university.
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