Blue ocean strategy ppt free download as powerpoint presentation. Mar 04, 2020 the blue ocean strategy which we boiled down to four steps is all about considering new approaches to make your blog unique by. The application of the blue ocean strategy assessing. At a bare minimum, errc grid and strategy canvas development is required and using the. Jan 14, 2012 the 7 books every entrepreneur must read. The blue ocean strategy which we boiled down to four steps is all about considering new approaches to make your blog unique by. Chan kim and renee mauborgne 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. Sep 09, 2007 blue ocearn strategy the errc grid the eliminatereduceraisecreate grid errc is complementary with the four actions framework, blue ocean strategy. It is used to plot how the current competitors compete in a market space, what factors they compete on and how your company and the competition scores on each key factor. The eliminate, raise, reduce, and create grid, also referred to as the errc grid, is a tool that utilizes the four actions frameworks to help identify goals for companies. Blue ocean concepts, like all strategy frameworks, require strategy development, communication and execution. Blue ocean strategy how to create uncontested market space and make the competition irrelevant facilitators.
This creates a competitive advantage and lasting success, rapid growth of the product or. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. 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 space. Create grid errc analysis and describe which factors eliminated, reduced, raised, and created against traditional crm offerings to provide unprecedented buyer value at low cost. Table 1 illustrates an errc grid developed through asking the four questions below for pharmacy services. Strategy canvas eliminatereduceraisecreate errc grid all. Blue ocearn strategy the errc grid the eliminatereduceraisecreate grid errc is complementary with the four actions framework, blue ocean strategy. Blue ocean strategy presents a systematic approach to making the competition irrelevant and outlines principles and tools any company can use to create and capture their own blue oceans. Blue ocean strategy is a bad book, but it is not your usual bad book. The purpose of this research is to gain insight into the blue ocean strategy by focusing on the strategy canvas, the four actions framework, the eliminate reduce raise create errc grid, and the six paths framework. Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to. Eliminatereduceraisecreate grid errc grid blue ocean.
The eliminatereduceraisecreate grid errc grid, a key blue ocean analytic, allows us to lay this out. As for those who choose a threestar hotel over a fivestar, price jumped out as the most common factor, followed by one other. 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. Chan kim, renee mauborgne has been one of the great books on startups and errc grid, which it has. Blue ocean strategy roadmap on value innovation to create uncontested market space and make the competition irrelevant. Apr 03, 2010 blue ocean strategy summary and examples 1. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Heres a simple tool we use for ideas generation and innovation.
The factors that you enter in the grid are the same ones. 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 unlocking a new blue ocean. In this article, the concept of value innovation, the cornerstone of blue ocean strategy, is analysed using the example of tefal actifry, a new type of french fry maker that used only one teaspoon of oil to make two pounds of fries, with roughly 40% fewer calories and 80% less fat. The purpose of this research is to gain insight into the blue ocean strategy by focusing on the strategy canvas, the four actions framework, the eliminate reduce raise. It is a dangerous bad book because it takes some thinking to figure out why it is bad, despite its success, and despite the fact that its key metaphor of blue ocean vs. A critical evaluation of blue ocean strategy and its value to. Chan kim and renee mauborgne in 2005 after had studied 150 real cases that distributed in 30 industries. Chan kim and renee mauborgne is a simple matrix like tool that drives companies to focus. February 1, 2019 november 20, 2019 daniel fortune 0 comments blue ocean strategy, errc grid, goals, life vision statement, mission, objectives, stating your vision, vision, vision statement a mission or vision statement is in essence a high level snapshot of the companys goals and what they intend to achieve as well as have perceived.
The thinking that took place to move through visualization, the four actions, and the errc grid is manifest in the strategy canvas. Need help required on blue ocean strategy simulation round 2 year 45 46 for input decision to increase the spi and ebita for the products. Many other tools are also involved in this strategy in relation to smes but the key tools can be explained as follows. The tools helped him realize that generation y were about to reach their pet owning years, and that he could reach them cheaply and effectively using social. Blue ocean strategy value innovation strategy canvas four actions framework errc grid six paths framework pioneer migrator settler map. Blue ocean shift is the essential follow up to blue ocean strategy, 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. 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. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. There are some tool produce to help implement blue ocean strategy.
Red oceans are competition intensive markets where firms. Blue ocean strategy formulation the strategy canvas. After such deliberation, the grid may be filled up with decisions and plans which must be eliminated, reduced, raise, or created. The core idea of the blue ocean strategy is not to arise more competitions, but to establish a new market, so there is no contest. Drawing on more than a decade of new work, kim and mauborgne show you how to move beyond competing, inspire. Figure 1 juxtaposes the asis and the tobe or newvalue curves. 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.
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. After using the strategy canvas and errc grid, and studying the yellow tail and cirque du soleil case studies, he decided to concentrate on creating highend products for big dog owners. Blue ocean strategy harvard business school press, 2005 focuses on breaking out of red oceans of competition, creating new. The grid is also a high level analytical tool to show in what areas the firm can improve, and where shortcomings may be. Some equate it to the work we find in peter thiels zero to one. How to use the blue ocean strategy to revitalize your blog. The case comes with a teaching note and a lecture slide pack. The strategy canvas outlined in the book is basically a tool to visually show how a company will or has created a blue ocean strategy. Errc grid help company to remain on their competitive factors. At a bare minimum, errc grid and strategy canvas development is required and using the strategy canvas output in your marketing message, on your website and in your sales process is what helps to ensure blue ocean success. Most business books focus on beating the competition.
In their 2017 new york times bestselling book, blue ocean shift, kim and mauborgne share how to put these practical marketcreating tools into practice to move from red to. Bos four actions framework errc grid innovating now. Blue ocean strategy is, itself, a blue ocean in the strategy world. Blue ocean strategy is a preconceived way to maximise the chances to open new competitionfree markets that boost firm income and thus survival.
Feb 28, 2015 blue ocean strategy s errc grid drives companies to focus simultaneously on eliminating and reducing, as well as raising and creating to unlock a new market space. Refining your blue ocean strategy with helpful tools. The eliminatereduceraisecreate errc grid developed by w. Blue ocean strategy seeks to make the competition irrelevant by creating a leap in value for both the company and its buyers. 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. A landmark work that upends traditional thinking about strategy, this bestselling business book charts a bold new path to winning the future. Covering topics none of your competitors are touching. Also known as the four actions framework see blue ocean strategy, the errc grid asks leaders four fundamental questions. A critical evaluation of blue ocean strategy and its value. Blue ocean strategy, create new markets and leave the competition behind. Feb 28, 2015 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 space. Blue ocean strategy how to create uncontested market space and make. The grid will then be the basis to draw the new or tobe value curve onto the strategy canvas. Get the one page summary of the case and teaching objectives here.
The premise of the book is that companies can succeed by creating. Who can help on the blue ocean strategy simulation. Chan kim and renee mauborgne 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. Implementing blue ocean strategy arbor dakota strategies.
For example, nintendo asked people in their three tiers why they didnt play games. Using company examples, explain the advantages and disadvantages critical analysis, constrast and compare of using the strategy canvas evaluate elements errc grid,blue ocean in the context of the structuralist competitive strategy and reconstructionist schools of strategy. The eliminatereduceraisecreate errc grid is the matrix that help execute blue ocean strategy with the four action framework. The blue ocean strategy is based on creating an uncontested market space and making competition irrelevant. Eliminate features to differentiate your product roman pichler. Home blue ocean strategy powerpoint template errc grid powerpoint diagram errc grid powerpoint diagram found on this slide design is an errc grid powerpoint diagram which may be used in evaluating or deliberating certain business programs or marketing projects.
In their 2017 new york times bestselling book, blue ocean shift, kim and. The key tools and processes involved in developing a blue ocean are. Strategy canvas four actions framework errc grid six paths framework pioneer. Netflix blue ocean strategy by ameni kabboudi issuu. Blue ocean strategy summary and examples slideshare. 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.
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. 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. Errc grid for the shorthaul airline industry eliminate. The best book for noncompetitive strategy striving. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. Blue ocean strategy concepts are applied to analyze amazons marketcreating strategic logic for future growth. The errc grid is a helpful tool for any startup or company is trying to identify new opportunities, new products or services to offer, or a business model to.
Eliminate which factors in your industry are taken for granted and should be eliminated. Many organizations struggle with one or more of these elements. Blue ocean strategy is a book published in 2005 and written by w. That is a fine book and an extension of blue ocean thinking. See more ideas about blue ocean strategy, business model canvas and ocean. Order description answer 3 from the 4 questions below. The grid, which forms part of the blue ocean strategy, encourages you to. This leads to a matrix with four quadrants that give the grid its name. The blue ocean strategy four actions framework also called eliminate reduce raise create grid errc grid is a complementary tool to the strategy canvas. 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.
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