Blue Ocean Strategy
Blue Ocean Strategy, the term could just listen to us when not know what it is about. In fact, if it is translated as: another way, a Chinese person might not be difficult to understand, but maybe it did not copy it hot - this market seems very strange, an innovative and intelligent concept will not necessarily been copied hot (eg Dr. Xiang-star book - "profit management" concept "of shareholders, managers, human capital management Limited eternal theme" proposed, I personally think is quite unique insights and innovation), but an old the concept turned new tricks, conduct some nouns innovation, can be quickly copied hot hot.
Blue Ocean Strategy is different from giving a "Red Sea strategy" innovative ideas, it can give you a new feeling on the market, after reading Blue Ocean Strategy, you know better how to develop a more conducive to their survival market, you can make your business better survival and development.
The book Blue Ocean concept introduced with the corresponding Red Sea, the Red Sea is now called the existence of the market space, in this market, companies engaged in bloody competition, corporate blood flow to the sea red, so called Red; Blue Ocean is now the industry does not yet exist, it is unknown market space, waiting for people to open up, because no one had opened up this piece of ocean, so it is a primary color: blue.
You might be thinking, where they feel there waiting for me to open up ah? The authors noted that the directions: from existing customers and rivals, steering reclamation "non-client" piece of virgin land - do not stare at the existing market of life and death struggle, the only way to satisfy existing customers is to let them pay less money, to achieve greater effectiveness, that the blood of many client companies put almost dry, tinged sea.
Everyone wants to develop non-clients, ah, how to do it? The book teach you a four-step operation: 1, to find existing industries need for both sides believe deserved elements to see what needs to eliminate (purpose of doing so is to abandon existing markets or to reduce costs); 2 to see which elements can reduce the standard; 3, to see what elements need to increase the standard (another way to attract non-clients); 4 to see what new elements to increase
Blue Ocean Strategy is not only to teach people how to develop a new market, and the blue ocean strategy in the war level "strategic" explained was so transparent, clear, people to understand at a glance where the practice.
First, the "Blue Ocean Strategy" gives me the concept of competition, there has been ｕｐ ｄａｔｅd understanding. We used to attach too much importance competitors, always find ways to combat the expense of creation, to fall into the "Red Sea" (known market space) strategies. We have to fight for market share and competitors prices, so that their profits greatly reduced after the occupation of the market is always fantasy mention price, but how many people can really do this? We hope to use the service to make up for lack of products, but no matter how well you keep up with the continuous improvement of the service user's needs.
Blue Ocean Strategy requires companies to lift their eyes from the supply side toward the demand side of the market, from the attention and the actions of competitors than the super-leap towards the provision of value for the buyer. By crossing the border to see the market and existing competition different elements of the market value of the buyer screening and reordering, it is possible to reconstruct the enterprise market and industry boundaries, opening a huge potential demand, so get rid of the "Red Sea" - the known market space - bloody competition, and ｃ ｒｅａｔｅ a "Blue Ocean" - a new market space.
A company must adhere to explore the blue ocean, because only you continue to find the blue ocean in order to ensure the company is to meet customer requirements in order to not be out of the market. Only consider the Red Sea is not enough, but the Red Sea is a must, with a competition in the Red Sea make you discover the blue ocean and quickly establish your position in the blue sea, the Red Sea, I think even if you do not find you can not quickly pull the Blue Ocean occupied. Blue Ocean represents untapped market space, representing the creation of new demand, represents an opportunity for profitable growth. Although some blue ocean is completely beyond existing industry boundaries ｃ ｒｅａｔｅd, but most of the blue ocean in the Red Sea is through internal expansion and to develop existing industry boundaries out.
Secondly, the "Blue Ocean Strategy" illustrates another point: to ｃ ｒｅａｔｅ a blue ocean divide between winners and losers, not in cutting-edge technology, nor the "time to market." These factors sometimes exist, but more often, they do not exist. Only when enterprises to innovation and utility, price, cost integrated whole, only the value of innovation. If innovation is not so rooted in the values, then the technology innovators and market pioneers tend to fall for others to do the wedding dress fate. Only on the value of innovation is not heavy, it is easy to enable enterprises to focus on small steps incremented "value creation" on. This approach can also improve the value, but not enough to make you excel in the market. Only re-innovation, value is not heavy, easy to make technological breakthrough innovation is only driven, or focus only on the market first, the blind pursuit of novelty or weird, the result is often more than the buyer's mental ability to accept and purchasing power. Therefore, a very important point is to take the value of innovation and technological innovation and market-leading distinguish.
Finally, the "Blue Ocean Strategy" demonstrated the "difference" and "low cost" dialectical relationship: the relationship between value and cost trade-offs between. Conventional view was that a company or at a higher cost to ｃ ｒｅａｔｅ greater value for customers, ｃ ｒｅａｔｅ or fairly good value at a lower cost. Thus, the strategy will be seen as a choice between "difference" and "low cost." In contrast, those who will be aiming to ｃ ｒｅａｔｅ a blue ocean simultaneous pursuit of "difference" and "low cost."
All of the performance, from the state, individual, corporate performance, it is obtained by dividing the pay, this is your productivity.
Innovation which can be random, or may be systemic. When innovation is random, you will see the individual entrepreneur is risky business when, keep trying, error correction, from the failure to find lessons, of course, related to the culture, but also related to the organization of the test, the independent organization out part, made experimental unit. The last choice is to avoid the risk. This is Peter's male system. When innovation becomes systematic system, there is a pattern, a pattern of thinking, theoretical methodology to minimize risk. So two innovative ways, in a random manner by the genius of management, or by the failure of experience to summarize slowly groping; and systematic innovation can be achieved through a theoretical certain way. Both are innovative ways, but the mechanisms are different quest. This is the innovative two-state value learning, male Peter and value innovation.
Chinese companies are now learning how to improve productivity, and productivity is equal to output divided by input. If you can improve productivity, we can improve the speed of their own development, to catch up. But if you do not innovate, although you can accelerate development, but can not achieve a leap-style development. Chinese enterprises have to do now is not only to increase productivity, but also innovation, this year should do so tomorrow in order to have a strong brand, not just the raw material processing and manufacturing base.
All in all, the Red Sea or the strategy or in the production of competitive price, they are productive competition. Blue Ocean Strategy is the key to open up new demand, open up new market space, through value innovation to get the new space.
Value Innovation consists of three parts, including the value of a recommendation is, a profit on the recommendations, one is positioned on the personnel. In the value refers to the utility minus the price, and the profit is price minus costs, including personnel on stock holders, employees, business partners, including the entire community.
Products and services to please customers in the market only fell far short of the goal of the development of enterprises, because enterprises ultimately to profit, if it does not meet your shareholders, your employees, your business partners, your profit is these short, a year can be profitable, but over time may not be profitable. Therefore, strategically, for the three parts to provide compelling value, provide compelling value to the market and shareholders and other parties.
Blue Ocean, an undeveloped sea, it is waiting for people to understand its development; strategy, in order to win in the competition must have a good strategy to guide us. "Blue Ocean Strategy", with its innovative vision to look at now, "Red Sea market", but not in the "Red Sea strategy." While pioneering Blue Ocean is a very painful thing, but once we succeed, it will bring us endless benefits.
Book review on Blue Ocean Strategy (ii)
All of the performance, from the state, individual, corporate performance, it is obtained by dividing the pay, this is your productivity.
Innovation which can be random, or may be systemic. When innovation is random, you will see the individual entrepreneur is risky business when, keep trying, error correction, from the failure to find lessons, of course, related to the culture, but also related to the organization of the test, the independent organization out part, made experimental unit. The last choice is to avoid the risk. This is Peter's male system.
When innovation becomes systematic system, there is a pattern, a pattern of thinking, theoretical methodology to minimize risk.
So two innovative ways, in a random manner by the genius of management, or by the failure of experience to summarize slowly groping;
The systematic innovation may be implemented by some theoretical methods. Both are innovative ways, but the mechanisms are different quest. This is the innovative two-state value learning, male Peter and value innovation.
Chinese companies are now learning how to improve productivity, and productivity is equal to output divided by input.
If you can improve productivity, we can improve the speed of their own development, to catch up. But if you do not innovate, although you can accelerate development, but can not achieve a leap-style development. Chinese enterprises have to do now is not only to increase productivity, but also innovation, this year should do so tomorrow in order to have a strong brand, not just the raw material processing and manufacturing base. We can not teach you how to immediately innovation, I hope everyone is how systematic innovation.
What is the Red Sea What is Blue Ocean?
Red Sea strategy in the existing market space, competition, and to ｃ ｒｅａｔｅ a blue ocean strategy is no competition for market space. All in all, the Red Sea or the strategy or in the production of competitive price, they are productive competition. Blue Ocean Strategy is the key to open up new demand, open up new market space, through value innovation to get the new space. In the end what is the strategy? Many people talk about the strategy, but soon to know what strategy represent?
Value Innovation consists of three parts, including the value of a recommendation is, a profit on the recommendations, one is positioned on the personnel. In the value refers to the utility minus the price, and the profit is price minus costs, including personnel on stock holders, employees, business partners, including the entire community.
Products and services to please customers in the market only fell far short of the goal of the development of enterprises, because enterprises ultimately to profit, if it does not meet your shareholders, your employees, your business partners, your profit is these short, a year can be profitable, but over time may not be profitable. Therefore, strategically, for the three parts to provide compelling value, provide compelling value to the market and shareholders and other parties.
If you use a word to summarize the contents of a few comprehensive strategy it is related to the potency value associated costs related to people. As the leader of a country, which means that you can ｃ ｒｅａｔｅ a little longer much profit for the people, or the people to ask for the costs. This is the national leaders should have strategies. For corporate leaders is concerned, you can provide customers with what, you ask your customers pay how much the price, the cost to reach all need, how to make your employees, your business partners, your shareholders are very satisfied with it ? For individuals, it can also be used to analyze four points, you give a company, you bring added value to the company where is it? Your price is how much, how much is your salary? Your life cost? How you make your boss your colleagues are satisfied with it? This way of thinking can be applied to all levels of each individual.
This set of theoretical system universal.
Blue Ocean Strategy effect on the economy:
In a series of studies on new business we have conducted, 86 percent of all new business development in the area of the Red Sea, only 14% of the blue ocean areas, they affect the revenues and profits of apparent manipulation, blue ocean areas open new business conducted inside although only 14%, but in terms of revenue accounted for 62%, 39% of the profit, which was originally not surprised, because you can explore the blue ocean has always been to increase profits, but surprisingly so since we know the results, why are 86% of the Red Sea to open up areas of it?
Why again found the blue ocean can bring a lot of revenue and profits, over and also open up a lot of the Red Sea? Because people know how to invest in the Red Sea can be industry analysis, competitive analysis, and price quality ratio over the opponent, all this is quantitative, clear, which makes investment operations very easy.
But in the blue ocean, no skills and methods of the field equal to the Red Sea, because we have ｃ ｒｅａｔｅd, we must explore the experience from scratch, and not too ready to grasp the systematic framework to ｃ ｒｅａｔｅ a blue ocean, so ｃ ｒｅａｔｅ a blue ocean is a very painful thing.
"Blue Ocean Strategy," this book wanted to change this situation, he offers a series of strict, it is advantageous to allow people to blue ocean in the quantitative assessment of factors that make creating blue ocean becomes a very viable thing.
Creating Blue Ocean Have paradigm can follow it, we know that all theories like Einstein's theory, if not a formula for calculating the last word, this theory is not much use, including quality control, it has always been there theory, 8 to 90 years, with six Sigma, and only then these theories become feasible, all theories must have the appropriate methodology to make theory into practical and useful.
Our research data related to the creation of 150 blue ocean, spanning more than 30 industries, and the time span of 100 years, because we believe that 100 years ago to ｃ ｒｅａｔｅ a blue ocean and not much different, because they are there is a paradigm, we investigated more than 100 cases of blue ocean, blue ocean ｃ ｒｅａｔｅd in these cases, the success and failures, we put two kinds of cases to compare, compare across industries, across the comparison time, we want to find It is a fundamental paradigm, a fundamental equation enables us to re-ｃ ｒｅａｔｅ the Blue Ocean, these industries include the cinema industry, the computer industry, aviation, retail, home construction, automotive industry, steel industry, and so on.
Then we studied many variables, including variable ,, industrial organizational variables, strategic variables, variables such as industry, is not to say that the rise of the industry variables is easy to ｃ ｒｅａｔｅ a blue ocean, in weak industries can also ｃ ｒｅａｔｅ a blue ocean it? Organizational variables, including men, women or that one of them is more likely to ｃ ｒｅａｔｅ a blue ocean, young or old, it is open-minded or conservative, and this is where we studied the object of a variety of variables.
We found the following: ｃ ｒｅａｔｅ a blue ocean than technical innovation, sometimes through new technology innovations, sometimes by old technology innovation, in general, the emergence of new technology market, then a lot of people think of new technology or the first people entering the market, but the value of innovation or the Blue Ocean strategy does not care about the first one, if there is a technical innovation, but the first to offer a leap in value. When we went to Silicon Valley, a lot of people think that blue ocean strategy is a new theory, but it is not.
Blue Ocean Strategy includes three points, first of all have a very outstanding value, the second is to be profitable, and the third is all they have satisfied, pleased, so that it can ｃ ｒｅａｔｅ blue ocean.
For example, the first birth of the computer is MITS, not Microsoft, Apple ibm. Recorder is AMPES invention, rather than Sony Panasonic Philips.
Why I do not remember the original inventor of it? Because these businesses are not making money, they invented these products after they have lost money. We only remember the victory of the manufacturers make money. You invented the technology but want to lose money, or through the product to make money, win it? Technology innovator that invented these ideas, but the value is the innovator of this invention, the last person to make money.
Who paid who egg egg under, you are not want someone to help you pay for eggs come from? Chinese enterprises should go to brood, proud from eggs, not eggs. So do not just pay attention to technological innovation, but the emphasis on the value of innovation, but also in the history of many companies are receiving technical innovation and eventually lost money. The question then is how to make you own technique to make money and to satisfy everyone in the process, all parties are happy.
When traveling around the country, many people will say that we are not so rich as the United States and Europe, we have fiscal constraints, we can not do as the US and European companies want to do what. But these are excuses, because the real value of innovation and be profitable enterprises are the achievements of their success in the case of very limited resources.
Many managers have this excuse, such as the Chinese enterprises Why not ｃ ｒｅａｔｅ such a business like Starbucks it? If only limited improvements in manufacturing productivity, today is possible tomorrow, it is not known what, if you want to get a better future, Chinese enterprises must have their own good brand. Another point, regardless of cost, labor more expensive, but there will always be cheaper countries and regions, in order to win with cheap cost, one day there will be more industries to cheaper areas to go if you want to the industry held in China, to maintain this strength and all jobs, there must be a favorable brand job.
Blue Ocean Strategy will not only enable you to increase productivity and to better help you ｃ ｒｅａｔｅ a strong brand, so that Chinese enterprises have become a strong competitive enterprises. It is important to have at the same time increase productivity, while innovative, did not have time to do first what a single aspect, because it will do a better chance to lose, let competitors take advantage of.
Also, many of which are used to ｃ ｒｅａｔｅ a blue ocean from the Red Sea, is the intense competition existing in the Red Sea from the ｃ ｒｅａｔｅd, it is not built up starting from the blue ocean. Such as retail, retail business as in the past, such as Nestle, they are performed in productivity is on price competition, Starbucks came out once, changed the panorama of the industry, all businesses are unable to match it, the whole industry situation change occurs. So in China, we need to ｃ ｒｅａｔｅ like Starbucks or Wal-Mart's business, because we can have a brand. Blue Ocean Strategy for the creation of a global brand is very useful, if Chinese companies can ｃ ｒｅａｔｅ several global brand, it will change the whole mentality, people will notice China and recognition of China's strength in the brand.
Book review on Blue Ocean Strategy (c)
Use nearly a month's time, read the "Blue Ocean Strategy," this book, so I learned a lot, learned a lot, it has also been a major change on the way of thinking.
First, the "Blue Ocean Strategy" Let me have a new understanding of innovation. Innovation is not only technological innovation, more important is the value of innovation. Innovation goals, not to innovate new things, but to better meet customer needs, and often a lot of innovations are needed only because of the prior. In history there are many companies to obtain technology innovation and end up losing money, like the famous Motorola Iridium plan ultimately failed, the main reason is technological innovation and value innovation disjointed. The question then is how to use advanced technology to make money? This is probably something every skill in the art to do, it must be repeated considerations. The new technology is the basis of the value of innovation, but not all of the value of innovation. To user needs as the basis, technology as the cornerstone of the introduction of new products, new services, it is the responsibility of our innovation.
Secondly, the "Blue Ocean Strategy" gives me the concept of competition, there has been ｕｐ ｄａｔｅd understanding. Competition, and include not only competitors in the "Red Sea" in the fight, should also include the occupation of new products, new market segments. Competition in the field of communication not only calls the price, more importantly, new products, new business competition, which is on the teacher training courses, the company's core competitiveness. We used to attach too much importance competitors, always find ways to combat the expense of creation, to fall into the "Red Sea" (known market space) strategies. We have to fight for market share and competitors prices, so that their profits greatly reduced after the occupation of the market is always fantasy mention price, but how many people can really do this? We invest a lot of money to research and development of new varieties, a way to occupy the market, leaving aside the new products can really accepted by the market, even if the market is very broad, but opponents of similar products will soon come out, turn into the same a new round of grappling. We hope to use the service to make up for lack of products, but no matter how well you keep up with the continuous improvement of the service user's needs.
With the development of customer needs are constantly changing, Blue Ocean Strategy requires companies to look shift demand from one market supply side, that is, its competitors Si Pin, as the introduction of better meet customer needs. Across the border to see the existing competitive market, the buyer will be screening elements of different market value, reordering, it is possible to reconstruct the enterprise market and industry boundaries, opening a huge potential demand, so get rid of the "Red Sea" of the known market space bloody competition, and ｃ ｒｅａｔｅ a "Blue Ocean", a new market space, enhance their core competitiveness, so would it be better?
A company must adhere to explore the blue ocean, because only continue to find the blue ocean in order to ensure the company is to meet customer requirements in order to not be out of the market. Only consider the Red Sea is not acceptable. If Nokia has been cling to the Red Sea, then it is possible to do wood processing, the United States has been living cling to the Red Sea, only do the original bottle caps, if not impossible, there is beauty brand today. But the Red Sea is a must, with a Red Sea competition makes you discover the blue ocean and quickly establish your position in the blue sea, the Red Sea, I think even if you do not find the blue ocean and you can not pull quickly occupied. Blue Ocean represents untapped market space, representing the creation of new demand, represents an opportunity for profitable growth. Although some blue ocean is completely beyond existing industry boundaries ｃ ｒｅａｔｅd, but most of the blue ocean in the Red Sea is through internal expansion and to develop existing industry boundaries out.
If the home air conditioning market is the Red Sea, that the inverter air conditioner, home central air conditioning is to further meet the needs of people and the creation of the Red Sea from household air this out of the blue ocean. Appliance industry is so constantly ｃ ｒｅａｔｅ blue ocean in the Red Sea on the basis, in order to broaden the market. Of course, other industries as well.
"Blue Ocean Strategy," also illustrates another point: to ｃ ｒｅａｔｅ a blue ocean divide between winners and losers, not in cutting-edge technology, nor the "time to market." These factors sometimes exist, but more often, they do not exist. Only when enterprises to innovation and utility, price, cost integrated whole, only the value of innovation. If innovation is not so rooted in the values, then the technology innovators and market pioneers tend to fall for others to do the wedding dress fate. (Www.lz13.cn) only weight value, innovation is not heavy, it is easy to enable enterprises to focus on small steps incremented "value creation" on. This approach can also improve the value, but not enough to make you excel in the market. Only re-innovation, value is not heavy, easy to make technological breakthrough innovation is only driven, or focus only on the market first, the blind pursuit of novelty or weird, the result is often more than the buyer's mental ability to accept and purchasing power. Therefore, a very important point is to take the value of innovation and technological innovation and market-leading distinguish.
Finally, the "Blue Ocean Strategy" demonstrated the "difference" and "low cost" dialectical relationship: the relationship between value and cost trade-offs between. Conventional view was that a company or at a higher cost to ｃ ｒｅａｔｅ greater value for customers, ｃ ｒｅａｔｅ or fairly good value at a lower cost. Thus, the strategy will be seen as a choice between "difference" and "low cost." In contrast, those who will be aiming to ｃ ｒｅａｔｅ a blue ocean simultaneous pursuit of "difference" and "low cost."
"Blue Ocean Strategy" inspired us, the market competition is becoming increasingly fierce. Contact the industry status quo, said home appliance manufacturers have tried to reduce the production cost ways to maintain the fierce price war in the living space, which is simply a vicious circle, like air conditioning thin sheet metal change, it always has a limit, only to remain competitive over time. Enterprise development and growth through market research generalized way, coming out of the existing saturated markets, the sole provision River Drive, it is possible to kill in the existing markets open a way to survive, opening up a new, or at least can be maintained for some quiet time the consumer market, to get rid of the "Red Sea" bloody competition, and ｃ ｒｅａｔｅ a "Blue Ocean" new market space, and now the United States launched the inverter air conditioner is a good example.