Concept is a novel idea that achieves both differentiation and low cost to create a new market space where there is no competition. Children, the mainstay of the circus audience, preferred PlayStations to circus acts. Sales of the Model T boomed. Blue Ocean Competition reserves the right to eliminate any pitch and/or disqualify any individual or team that it deems inappropriate or harmful to another team or the competition itself. To be eligible, the pitch must be included in the Top 100 as chosen by the judges. By introducing these factors, Cirque has created highly sophisticated entertainments. Once you know where youre competing, you can add unique goals and measures to track your progress in charting that blue ocean. Blue Ocean Strategy. The pattern of blue ocean creations exemplified by these three industries is consistent with what we observed in the other industries in our study. When imitation requires companies to make changes to their whole system of activities, organizational politics may impede a would-be competitors ability to switch to the divergent business model of a blue ocean strategy. 2 talking about this. Goes virtual and gets nationwide participation. Every year, teams pitch their blue ocean business concepts to experienced entrepreneurs and business people. Make the competition accessible to all high schoolers around the world. Beyond the 25 US States participating ranging from New York to California, Florida to Arizona, Maine to Indiana 12 other countries, including Denmark, Kenya, Russia and Korea, joined the competition this year. Check if your school has participated here. Blue Ocean Blue ocean strategy, by contrast, is about doing business where there is no competitor. The blue ocean strategy is about helping your company gain uncontested market space separate from other, similar businesses. Blue and red oceans have always coexisted and always will. Focusing on the red ocean therefore means accepting the key constraining factors of warlimited terrain and the need to beat an enemy to succeed. Were upgrading our systems so we can better serve our subscribers. These are a heavy economic burden, because circuses have to shell out not only for the animals but also for their training, medical care, housing, insurance, and transportation. Blue Ocean Strategy. Botana is a cheap, 100% biodegradable solution made of banana stem. WebThe Blue Ocean Student Entrepreneurship Competition has just announced their 2019-2020 winners. But the firms ultimate fate does not invalidate the smart strategic move Compaq made that led to the creation of the multibillion-dollar market in PC servers, a move that was a key cause of the companys powerful comeback in the 1990s. Apple made iTunes a win-win-win for the music producers, music listeners, and Apple by creating a new stream of revenue from a new market while providing more convenient access to music. In fact, as the exhibit shows, most blue oceans are created from within, not beyond, red oceans of existing industries. "Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant." The concept is clearly articulated using the appropriate blue ocean tools and frameworks; message is clear and compelling and presented with great interest and enthusiasm. The online course is fun and short! When a company offers a leap in value, it rapidly earns brand buzz and a loyal following in the marketplace. A rejection of the trade-off between low cost and differentiation implies a fundamental change in strategic mindsetwe cannot emphasize enough how fundamental a shift it is. Narrow down your target market before opening a retail location. In 1908, the first Model T cost $850; in 1909, the price dropped to $609, and by 1924 it was down to $290. WHAT IS RED OCEAN STRATEGY? While billions of music files were being downloaded each month illegally, Apple created the first legal format for downloading music in 2003. Use the Strategy Canvas to describe the industry landscape, the Three Tiers of NonCustomers to describe your target market and the Eliminate-Reduce-Raise-Create Grid to describe your strategy. WebThis year, five high schools from Michigan, New York, Florida, Minnesota and California won US$1000 each for having the most submissions in this competition. WHAT IS RED OCEAN STRATEGY? Despite all of its efforts and all of its investment, Microsoft has not been able to unseat Intuit as the industry leader. More than 500 automakers in America competed in turning out handmade luxury cars that cost around $1,500 and were enormously unpopular with all but the very rich. As a result, the industry was hit by steadily decreasing audiences and increasing costs. A pure blue ocean market has no competitors. A blue ocean market business leader has first-mover advantages, cost advantages in marketing with no competition, the ability to set prices without competitive constraints, and the flexibility to take its offering in various directions. This is often true even in industries that are technology intensive. Leading-edge technology is sometimes involved in the creation of blue oceans, but it is not a defining feature of them. Check out the inspiring winning blue ocean pitches. Bangkok Arena High school students anywhere in the world. Have fun challenging and beating high school students from all around the world! WebUnexplored and untainted by competition, ' blue oceans' are vast, deep, and powerful in terms of opportunity and growth. Develop entrepreneurial skills and experience that will set you up for success. The very language of strategy is deeply imbued with military referenceschief executive officers in headquarters, troops on the front lines. Described this way, strategy is all about red ocean competition. For this fifth edition, the virtual entrepreneurship competition saw over 750 students, comprising 275 teams and over 120 high schools, submitting their pitches. Woodrow Wilson caught the spirit of the times when he said in 1906 that nothing has spread socialistic feeling more than the automobile. He called it a picture of the arrogance of wealth.. 2 talking about this. You may not have won this year, but we hope you had fun getting your innovative ideas heard, and learned a lot in the process. Learn how to put blue ocean theory andits tools and frameworks into practice in just 5 weeks with our interactive, expert-led program. Blue ocean markets are also of high interest to entrepreneurs. Products turn into commodities, and increasing competition turns the water bloody. The Bangna BTS Skytrain Station takes you to other parts of Bangkok, while Suvarnabhumi Airport is within a 30-minute drive away. Cirque is just one of more than 150 blue ocean creations that we have studied in over 30 industries, using data stretching back more than 100 years. (For a depiction of the economics underpinning blue ocean strategy, see the exhibit The Simultaneous Pursuit of Differentiation and Low Cost.). The blue ocean strategy encourages tweaking your products to push them into their own market with low prices and no competition. Business model makes a reasonable argument for commercial viability and scalability. Learn its pros and cons. What kind of strategic logic is needed to guide the creation of blue oceans? WebBangkok Arena ( Thai: , pronounced [b.kk .r.n] ), formerly named Bangkok Futsal Arena ( ), is an indoor sporting arena, located in Nong Chok District of Bangkok, Thailand. For example, consider the marketplace for car insurance: most insurers sell nearly-identical products, and try to capture market share by offering a more attractive deal than their competitors. WebEvery year, thousands of high school students pitch their innovative business concepts to experienced entrepreneurs and business people, receive feedback on their ideas, join a community of like-minded students, and compete for thousands in When it succeeds, however, the rewards are considerable. Another company that created a blue ocean shift is Home Depot, which made an original value-cost frontier that led to the multibillion-dollar DIY market, according to Kim. Problem the concept solves is neither significant nor common. A company will have more success, fewer risks, and increased profits in a blue ocean market. Huge congratulations to both Janani & Saloni!! CTRs tabulating machine In 1914, CTR created the business machine industry by simplifying, modularizing, and leasing tabulating machines. Register for the competition to receive helpful materials including the Blue Ocean Mini-Course to help you prepare for your pitch. Your current strategy reporting model will help execute the blue ocean ideas. Blue Ocean Creativy & Value Innovation (20%), Quality of Presentation & Use of Blue Ocean Tools (20%). And horses and carriages were much easier to maintain than the luxurious autos of the time, which frequently broke down, requiring expert repairmen who were expensive and in short supply. It is not intended to be comprehensive in coverage or exhaustive in content. The Blue Ocean Student Entrepreneur Competition is the most prestigious, virtual entrepreneurship competition in the world founded by and supported by high school students. Since buyer value comes from the utility and price a company offers, and a company generates value for itself through cost structure and price, blue ocean strategy is achieved only when the whole system of a companys utility, price, and cost activities is properly aligned. In overcrowded industries, differentiating brands becomes harder both in economic upturns and in downturns. Start by identifying what your target market needs and doesnt currently have. BLUE OCEAN Prospects in most established market spacesred oceansare shrinking steadily. Blue ocean is an entrepreneurship industry term created in 2005 to describe a new market with little competition or barriers standing in the way of innovators. This course will teach you the fundamentals of Blue Ocean Strategy, which is the leading strategy method in the business world today. Need help getting access? Look over the blue ocean pros and cons to decide if the strategy is right for you. Register for the competition and receive access to the online Blue Ocean Mini-Course to understand what blue ocean strategy is about, how to use the tools and frameworks, and how this competition is different from other pitch competitions. Other companies that have used blue ocean strategies include Apple, Yellow Tail, Amazon and Home Depot. Primarily focus on differentiation to set business ventures apart. Blue Ocean Write a formal plan for your shift and test your new products and services (and the processes youll take to get there). For struggling businesses, Mauborgne recommended the strategy canvas, which is featured in her newer book with Kim, Blue Ocean Shift: Beyond Competing. Check out the inspiring winning blue ocean pitches. Blue Ocean A business is an individual or group engaged in financial transactions. Ward Melville High School, East Setauket, New York, USA. *Driven by value pioneering does not mean that technologies were not involved. There is ample opportunity for growth that is both profitable and rapid. Rather than competing within the confines of the existing industry or trying to steal customers from rivals, Cirque developed uncontested market space that made the competition irrelevant. This approach led to high prices and inconsistent quality. Record your 5-minute video, upload on YouTube, submit a link and the video file. Value pioneering (mostly new technologies). In short, avoid head-to-head competition and focus on innovation. Think of the Blue Ocean Strategy as a way to open up opportunities and markets for a new organization, or an existing organization looking to grow. Ted is a Founder and Managing Partner of ClearPoint Strategy and leads the sales and marketing teams. The Peoples Choice Award is chosen by a combination of YouTube likes and our own Judge likes. That is what I did through the Blue Ocean competition and the online course., Business and Marketing Teacher Centennial HS, MD, Pillager HS, MN. The goal of a Blue Ocean Strategy is for organizations to find and develop blue oceans (uncontested, growing markets) and avoid red oceans (overdeveloped, saturated markets). Blue Ocean High school students with just an idea for a blue ocean business can also participate. To answer this question, we need to look at some examples from a range of industries and identify the specific strategic actions blue ocean companies took to achieve profitable growth. It was Henry Fords understanding of these advantages that showed him how he could break away from the competition and unlock enormous untapped demand. Founded in 1984 by a group of street performers, Cirque has staged dozens of productions seen by some 40 million people in 90 cities around the world. If your school does not allow outside emails to go through, use your personal email. To date, nearly 2000 students have taken the course. Ask yourself: How many industries that are unknown today will exist then? As with Broadway productions, too, each Cirque show has an original musical score, which drives the performance, lighting, and timing of the acts, rather than the other way around. We analyzed companies that created those blue oceans and their less successful competitors, which were caught in red oceans. At the same time, there is little evidence of any increase in demand, at least in the developed markets, where recent United Nations statistics even point to declining populations. Make your college applications stand out by participating in a world-class global competition. Whats more, companies that understand what drives a good strategic move will be well-placed to create multiple blue oceans over time, thereby continuing to deliver high growth and profits over a sustained period. 2nd Place Winner: EpiBraceletSahil ManthaSunset High School Portland, Oregon, USA. So were CTR and its later incarnation, IBM, and Compaq in the computer industry. The term was coined by Chan Kim and Renee Mauborgne in the book. How to begin creating blue oceans? This situation has inevitably hastened the commoditization of products and services, stoked price wars, and shrunk profit margins. The Body Shop, for example, shuns top models and makes no promises of eternal youth and beauty. Even as Ford offered the mass of buyers a leap in value, the company also achieved the lowest cost structure in the industry, much as Cirque did later. Blue Ocean Provide your best email address. Register first so we can keep you informed on the competition!