2. BLUE OCEANS
Leave aside
competition
Leave aside
competition
Create value through
innovation
RED OCEANS
No innovation,do the
same things
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All that competes
against each other
Go beyond everything
known
Blue oceans
develop form
read oceans
3. Blue Ocean
‧unknown business ideas
Red Ocean:
‧boundaries are defined and
accepted as they are
‧creation of markets in
areas that are not
currently exploited
‧rules of competitive game
known to all
‧create opportunities fore
profitable growth and
sustainable term
‧more competitors, therefore
less chance to become more
profitable
Profit is what makes your business grows, or what kills your business. Blue oceans give a lot more profit than red oceans.
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4. Canvas model
9. Cost Structure
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9 building blocks
1. Customer segments
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fix cost
variable cost
economy
8. Network Partners (strategic partners)
who am I going to target, who is my customer?
diversified market?
multisided
◦
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suppliers
partners to help out with specific sections
7. Key Activities
2. Value proposition (unique selling
propositions)
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what value do I want to sell to my
customers
something new
performance
customize (specifications)
design
brand and status
price (similar or different prices for
products)
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5. Inflows
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physical (facilities)
intellectual (compromise)
human
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what I want to get, what will make your business grow and develop
revenues
know where to focus and how to build it
3. Distribution channels and communication
◦
6. Key resources
what are you doing with your resources
production
problem solving
◦
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how are you letting them know about your
product
selling through partners or having your won
channels
web sales (partner sales)
stores (own channels)
the value proposition delivers to customers
through communication, distribution and sales
channels
4. Customer Relationship
◦
◦
build a relationship
what relationship does you product need
■ personal assistance
■ dedicated
■ self service
■ assistance
8. Stamp of ownership
Goes beyond name or service:
relationship of company with customer
A brand is the
identity of the
company
Sentimental value
behind a
company, a logo
Brands are big
business
Brands are yours, you make them,
you unmake them, you decide what
they mean
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10. Total cost:
Average cost:
FC + VC
FC / quality + VC / quality
IMPORTANT TERMS
Opportunity cost
Economy's of scale
Fixed cost
Variable cost
Marginal cost
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Economic cost
11. Key do's
know your business in depth
The Entrepreneurship Process
understand financial statements
develop a solid business plan
manage financial resources
learn to manage people effectively
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13. Resources used to produce goods and
services:
Elastic
vs.
Inelastic:
-the more important
the product the more
inelastic
SUPPLY
&
DEMAND
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labor
land
capital
entrepreneurship
Concavity: increase of
opportunity cost
Utility: satisfaction when
consuming something
