4 actions framework blue ocean strategy pdf

Chen, information systems theory and practices blue ocean strategy. Use our free blue ocean 4 actions framework template to create, collaborate on with your. In contrast, red ocean strategy is about how to outcompete in the existing market space. There may be times when your audience will ask you to email them a copy of your blue ocean strategy. Four actions framework blue ocean strategy posted by allen cheng mar 16, 2020 this article is an excerpt from the shortform summary of blue ocean strategy by w. The value of having a blue ocean strategy is better understood when compared to a red ocean strategy. Four actions framework blue ocean strategy shortform blog. 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. 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. Figure 4 from blue ocean strategy and new business models. This will make it easy for your audience to follow and understand the specifics of your proposed blue ocean strategy. The strategy canvas captures the current strategic landscape and future prospects for a company.

Learn to create a new value curve using the eliminatereduceraisecreate grid. History of industry 200220032 very successful ipod sales no desire from apple to create a pda steve jobs believes that cell phones will eventually carry the pda information americans carried cell phones, blackberries. 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. Professor of mis school of business administration gonzaga university spokane, wa 99258 usa. 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. 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. The frameworks offered in blue ocean strategy, on the other hand such as the strategy canvas and the four actions framework are specifically aimed at. Healthcares blue ocean strategy for blockchain cio. Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to. About the blue ocean 4 actions framework template who created blue ocean 4 actions template. Sailing into a blue ocean to understand the power of strategic moves that create blue oceans consider the us wine. The four actions framework can be applied to accountable care organizations to reduce costs while driving up value and creating new demand figure 1. 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.

The blue ocean strategy provides a framework and tool set for discovering new. 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. How to create uncontested market space and make the competition irrelevant, a. Miro has multiple exporting options, like saving to pdf. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Four actions framework of blue ocean applied to jet blue 1. 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. He has served as a board member as well as an advisor for a number of.

To fundamentally shift the strategy canvas of an industry, you must begin by reorienting your strategic focus from 2. As shown in the diagram above, to break the tradeoff between differentiation and low cost and to create a new value curve, there are four key questions to challenge an industrys strategic logic and. Chan kim and renee mauborgne is used to reconstruct buyer value elements in crafting a new value curve or strategic profile. Ocean strategy 1 creating blue oceans 3 2 analytical tools and frameworks 23 part. The structure can be created or recreated by the steps taken by players in the market. Kim has an executive role at the insead blue ocean strategy institute as a codirector, and she is a distinguished fellow at insead, where she teaches the different blue ocean strategies and management techniques.

The bluest ocean strategy for emerging ict business final report 2006. Blue ocean strategy case study service nsw 3 1 introduction blue ocean strategy1 has been used extensively to transform the public sector around the world at a local, state and national level. The 4 actions framework is a strategic tool used to reconstruct customer value elements. Blue ocean 4 actions framework canvas new workshop creatlr templates decks. By reorienting a company towards the factors being. Theres one slide for each action of the four actions framework. The blue ocean strategy framework has evolved from value. Blue ocean strategy powerpoint templates present better. These frameworks and tools are designed to be visual in order to effectively build the collective wisdom of the company and also to effectively execute a. Bos four actions framework errc grid innovating now. A fouraction framework for blueocean innovation the. 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 errc the eliminatereduceraisecreate grid errc is complementary with the four actions framework. Pdf neither the industries nor the companies are doing all smart.

The four actions framework is used to help create value innovation and break the valuecost trade. I am looking for more information on the 4 action framework. It allows users to clearly see the factors that the industry competes on and the factors that are being ignored. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. Reviewing the blue ocean strategy university of twente student. In a blue ocean you change the playing field of strategy. 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. Blueocean strategy is about creating and executing such strategic moves that unlock uncontested market space which render competitors irrelevant. 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. Remember what the product that company delivers is. This framework addresses not only the analytic aspects behind the creation of blue ocean strategy but also the allimportant human aspects of how to bring an organization and its people on this journey with a willingness to execute these ideas in. Value innovation strategy competes in an uncontested market space.

Blue ocean strategy rebecka mccollough mkt421 january 21, 2015 nikki butler blue ocean strategy when thinking about opening a business, you have to look at whether you want to compete in existing markets or create a new market for your product when you compete in existing markets, you will find many of them are overcrowded and your business will. Blue ocean strategy on jet blue case study by neil k. The blue ocean strategy offers users a framework for creating uncontested. It reconstructs the buyer values by focusing on four different actions eliminate, reduce, raise, and create. The four actions framework is used to add new values to the strategic canvas value curve. A new framework of blue ocean strategy for innovation. Blue ocean strategy 4 actions framework to reconstruct buyer value elements in crafting a new value curve, we use the four actions framework. Blue ocean strategy involves the simultaneous pursuit of differentiation new products or services and low cost.

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 four actions are mentioned by kim and mauborgne 2004 are. Blue ocean strategy four action framework free essays. Pdf blue ocean strategy as a tool for improving a companys. Using key blue ocean tools for strategy rethinking of a sme. Chen, information systems theory and practices red ocean vs. The blue ocean strategy tools four actions framework. Blue ocean strategy and new business models in the food. Create here, the idea is to create new industry factors that can generate value and anew market and were not offered before. Blue ocean 4 actions framework canvas new workshop creatlr. Implementing the blue ocean strategy is, simply put, a gargantuan task. Inde 599 19 overview industry prelaunch 5 forces analysis 4 actions framework strategy canvas 6 paths risk assessment post launch success. Blue ocean strategy formulation the four principles of.

A good blue ocean strategy has items in each of the four grids. The blue ocean strategy four actions framework also called eliminate reduce raise create grid errc grid is a complementary tool to the strategy canvas. The 4 actions framework is a core strategic tool used in blue ocean strategy. Airbnb blue ocean strategy by elisa lafuente on prezi.

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. The four actions framework emulates strategic triumphs and guides towards the. But many companies have done their homework and succeeded thanks to this strategy. 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 tools i have found most useful in facilitating smaller scale blue ocean type projects are. The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or structure is present. 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. Four actions framework powerpoint template sketchbubble. Figure 18 from blue ocean strategy and new business models. This analytic tool complements the four actions framework. Pdf harvard business school press blue ocean strategy rajeh. In order to find and identify an attractive blue ocean, one needs to take into consideration the four actions framework to devise the aspects of buyer value in creating a new value curve. According to the wine economist, it is because it is not just wine, but a new type of product within the wine industry. The fouractions frameworkon blue ocean strategy to reduce, create, raise and eliminate industry practices to create a.