Ikea blue ocean strategy pdf

Here you can find your local ikea website and more about the ikea business idea. This assignment describes the blue ocean strategy as an innovation concept within the corporate strategic management on the example of ikea. Ikea has been successful in nanjing by implementing a blue ocean strategy that is crucially supported by good value innovation. Click here to download the blue ocean strategy summary pdf. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. Chan kim and renee mauborgne enables you to evaluate your current leadership reality and guides you to. Those who want to create a blue ocean strategy for their company must focus on value innovation that makes the competition irrelevant by the simultaneous pursuit of differentiation and low cost, thus creating a leap in value for the customers and an uncontested market space for the company. Blue ocean strategy including examples and pdf download. Uitgeverij business contact, amsterdam 2005 inleiding. Blue ocean strategy is a landmark idea founded by w. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Blue ocean strategy is a concept that has been pioneered by insead professors, w. Use value innovation to create competitive advantages in blue.

With its headquarters in delft, netherlands, the company has evolved significantly from a small swedish business to a reputed home. In october 2011, ikea had a portfolio of 332 stores in 38countries. Ikea is a multinational group of companies that designs and sells readytoassemble furniture, appliances and home accessories. Developing a blue ocean strategy for ikea location india ikea reasons to choose india c about ikea ingvar kamprad founded ikea in 1943. The premise of the book is that companies can succeed by creating. This strategy, which is based on extensive research of hundreds of companies spanning across decades and including several industries, proclaims that instead of battling competitors, companies can create new markets for themselves.

How ikea created a new market forster, andreas, wenzel, henning on. Ikea achieved this through tight cost control and production efficiencies. With the launch of itunes, apple unlocked a blue ocean of new market space in digital music that it has now dominated for more than a decade. Pdf ikeas blue ocean strategy matthew bennett academia. Chan kim at the panasonics crossvalue innovation forum 2018 in tokyo. Cost effectiveness is one of the solid bases of ikea competitive advantage. Canon copier industry case study blue ocean strategy example. The blue ocean strategy aspires to turn strategic management on its head by putting value innovation in front of competitive advantage as the basically goal to create consumer. Red ocean vs blue ocean compete in existing market beat the competition explore existing demand make the valuecost trade off swim in a new market nowadays. Boss studies show that successful companies that created blue oceans pursued both differentiation and low cost simultaneously, in stark contrast to porters influential view porter 1985 of pursuing either low cost or differentiation strategies to avoid. The strategy was intended to fill a gap in the existing market. This is be done by analysing the framework and the tools of the blue ocean strategy by considering both basic principles and practical implementation. Private sector and retail industry, headquarters leiden, netherlands is a multinational company that designs and sells self assembly.

Blue ocean strategy challenges companies to break out of the red ocean of bloody competition by creating uncontested market space that makes the competition. Ikea offers everything from living room furniture to mattresses and bedroom furniture so that you can design your life at home. Canon copier industry case study blue ocean strategy. Blue ocean strategy formulation the four principles of strategy formation click here to read this article. In business, strategy and strategic management originated only in the 1950s with the aid of strategic tools such as the swot analysis, ansoff matrix and the five forces model. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. Kim chan and renee mauborgnes blue ocean strategy a macat business analysis duration. Under armour marketing kevin planks blue ocean strategy. International strategy and sales management, language. Mar 04, 2017 ikea new blue ocean strategy and business model canvass 1. Ikea new blue ocean strategy and business model canvass.

Essay about blue ocean strategy 825 words bartleby. Ikea furniture and home accessories are practical, well designed and affordable. Blue ocean strategy is a book published in 2005 and written by w. It reduced costs by using plastic instead of metal, for example, and reducing the parts in each watch from 150 to 50. The ikea concept exists in every part of the company, from design, sourcing, packing and distributing through to business model.

Oct 31, 2016 strategy has been around for over thousands of years and finds its origin in the military and the need for people to defeat their enemies. Chan kim and renee mauborgne focused on discovering the common factors that lead to the creation of blue oceans and the key differences that separate those winners from the mere survivors and those adrift in the red ocean. The concept of blue ocean is based on the idea that the business universe is made up. Blue ocean strategy summary click here to read this article. Blue ocean strategy and sustainability for strategic. The company was founded in 1943 and is known for its simple yet. In this way, it swam into a blue ocean, offering a plastic. Blue ocean strategy is referred to a market for a product where there is no competition or very less competition. 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. Blue ocean strategy can be applied across sectors or businesses.

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. Following my earlier brief post on value innovations that formed the core of a realtively new strategy concept called blue ocean strategy bos, this. As of january 2008, it is the worlds largest furniture. But the segment proved too small to be sustainable, let alone generate a blue ocean of new. Those who want to create a blue ocean strategy for their company must focus on value innovation. Ikea is the worlds largest furniture retailer withheadquarters in leiden, netherlands. Blue ocean strategy is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. Oct 18, 2018 the most important characteristic of blue ocean strategy bos is that it rejects the fundamental principles of conventional strategy. Blue ocean strategy, harvard business school press, 2005. If yes, the blue ocean leadership app is right for you. Blue ocean shift is the definitive guide to shift you, your team, and your organization to new heights of confidence, market creation, and growth. The following discusses how ikea entered a saturated market, transformed its original market, expanded into a variety of different market cultures, and succeeded under new management. Ikea cost leadership strategy allowed it to have a competitive edge over other competitors in term of pricing.

Nov 02, 2019 the ikea concept exists in every part of the company, from design, sourcing, packing and distributing through to business model. Apple observed the flood of illegal music file sharing that began in the late 1990s, enabled by file sharing programs such as napster, kazaa, and limewire. Harvard business school publishing corporation 2005 nederlandse vertaling. The importance of cultural awareness on our own under the supervision of jenny balkow, ph. Marco perini federico polimanti davide raia mario velotto entrepreneurship, its all about creating value. Blue ocean strategy and sustainability for strategic management.

Use value innovation to create competitive advantages in. Seminar paper from the year 20 in the subject business economics offline marketing and online marketing, grade. Ikea blue ocean strategy mainly found in its cashandcarry retailing, cost cutting philosophy, unique simplicity, and corporate culture. Value curve also known as blue ocean strategyessentially, the goal is to create new market space in an industry that is completely mature. This strategy, which is based on extensive research of.

The main purpose the main purpose of this paper is to use blue. It was built on the notion of creating new markets where competition is. But the segment proved too small to be sustainable, let alone generate a blue ocean of new market space. It was built on the notion of creating new markets where competition is irrelevant and the opportunity to grow and be profitable is unlimited. Value curve also known as blue ocean strategy essentially, the goal is to create new market space in an industry that is completely mature. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. The on the blue ocean strategy essay 1969 words 8 pages. Business strategy explained with examples from ikea b2u. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. Under ikeas global strategy, suppliers are usually located in lowcost nations, with close proximity to raw material and reliable access to distribution. Scribd is the worlds largest social reading and publishing site.

Become a blue ocean leader with the leadership canvas app. Jan 22, 2015 if yes, the blue ocean leadership app is right for you. Based on an eponymously titled book, this strategy argues that cutthroat. Value innovation strategy competes in an uncontested market space. This article analyzes the strategy of the worlds leading furniture retailer, ikea using the swot methodology. Chan kim and renee mauborgne wrote the book blue ocean strategy back in 2005. In this article you will learn how to make your competition irrelevant and have sales and profit growth in excess of anything you thought was even possible.

This blog article is a overview of some of the key points of the book by w. Blue ocean strategy and its implications for businesses. Successful marketcreating strategies, in contrast, desegment markets by identifying key commonalities across buyer groups that could help. The following points constitute integral elements of ikea business strategy. Feb 16, 20 ikea is the worlds largest furniture retailer withheadquarters in leiden, netherlands. Of the many strategic planning models that exist, the blue ocean strategy could be considered the pacifist of the group. 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. This strategy revolves around searching for a business in which very. As of january 2008, it is the worlds largest furniture retailer. They dont mention under armour, but it fits their blueprint of success precisely reconstruct. The main purpose the main purpose of this paper is to use blue ocean strategy framework to analysis how to use value innovation to create competitive advantages and get market leader position.