Organization Vision & Corporate Strategy

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Corporate Vision & Strategy …

Corporate Vision & Strategy

How to achieve Corporate Vision with Blue Ocean & Red Ocean Strategy?

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  • 1. May 25, 2010 http://deepakagrawalblog.wordpress.com/ Corporate Vision & Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Vision Vision Vision Vision Vision Vision Vision Vision Vision Vision Vision Vision Vision Vision Vision Vision Vision Vision Vision Vision Vision Vision Vision Vision Vision Vision Vision Vision Vision Vision Vision Vision
  • 2. May 25, 2010 http://deepakagrawalblog.wordpress.com/ Vision Corporate Strategy Business Strategy Business Model
  • 3.
    • Vision
    • Vision means to achieve something within a certain period of time
    • An organization’s vision to become number 1 global organization in next 25 years
    May 25, 2010 http://deepakagrawalblog.wordpress.com/
  • 4.
    • Corporate Strategy
    • In order to achieve the vision organization develops corporate strategy by identifying & targeting businesses
    May 25, 2010 http://deepakagrawalblog.wordpress.com/
  • 5.
    • Types of Business
    • IT Services
    • Pharmaceuticals
    • Chemical
    • Telecommunication
    • Financial Services
    • Oil & gas
    • Retail
    • HealthCare
    • Reverse Mortgage
    • Green Mortgage
    • Water
    May 25, 2010 http://deepakagrawalblog.wordpress.com/
  • 6.
    • Organization needs to bifurcate high growth / Moderate Growth & Low Growth businesses as per geography & location. Granular approach should be followed while developing corporate strategy because a business can be under high growth category in one market however the same business comes under low growth category in other market
    • Corporate strategy should be developed by considering overall growth & profitability of an organization
    May 25, 2010 http://deepakagrawalblog.wordpress.com/
  • 7. May 25, 2010 http://deepakagrawalblog.wordpress.com/ Business as per Growth, Geography & Market High Growth Business (Emerging Market) High Growth Business (Developed Market) IT services Reverse Mortgage Telecommunication Green Mortgage Financial Services Water Real Estate Retail Water Green Mortgage
  • 8. May 25, 2010 http://deepakagrawalblog.wordpress.com/ Moderate Growth Business (Emerging Market) Moderate Growth Business (Developed Market) Chemical Chemical Pharmaceutical Pharmaceutical Low Growth Business (Emerging Market) Low Growth Business (Developed Market) - Telecommunication - Real Estate
  • 9.
    • Business Strategy
    • Once organization identifies targeted businesses to achieve the vision, next step is to develop products & services in each business unit/category
    May 25, 2010 http://deepakagrawalblog.wordpress.com/
  • 10.
    • Corporate Strategy
    May 25, 2010 http://deepakagrawalblog.wordpress.com/ Product 1 – BOP Product 2 – ROP Product 3 – ROP Product 4 – ROP Product 4 – ROP Product 3 – ROP Product 2 – BOP Product 1 – ROP Services 4 – ROP Services 3 – ROP Services 2 – ROP Services 1 – BOP Services 5 – ROP Product 3 – ROP Product 2 – ROP Product 1 – ROP * BOP - Blue Ocean Product (Blue Ocean Strategy) ** ROP - Red Ocean Product (Red Ocean Strategy) Business 1 IT Services Business 2 Telecommunication Business 3 Financial Services Business 4 Retail
  • 11.
    • Blue Ocean Strategy
    • Every successful organization always has some blue ocean products that makes the competition irrelevant and provide sustainable advantage for a very long period of time. With these products organization provides high value to customer at low cost by achieving desired profit. These products come up with an entry barrier or innovative production & distribution system with economies of scale and patent protection which makes very difficult for other organization to imitate. SAP (ERP software), GE Healthcare’s medical equipment (ultra sound), South West Airlines (low cost carrier), Tata Motors nano (car for masses) and Microsoft’s Windows etc.
    May 25, 2010 http://deepakagrawalblog.wordpress.com/
  • 12.
    • Blue Ocean products provide more than 60% of Revenue and profitability for any top and successful organization
    • Profit and growth consequences of blue ocean strategy
    May 25, 2010 http://deepakagrawalblog.wordpress.com/ 86% 14% 62% 38% 39% 61% launches within red oceans launches for creating blue oceans Business Launch Revenue Impact Profit Impact # Data Source - Blue Ocean Strategy by W Chan Kim & Renee Mouborgne
  • 13.
    • However apart from blue ocean products organization continuously does incremental innovation to survive in Red Ocean Market. With these kinds of products & markets organization try to beat competitor by providing value added services or reducing prices which eats out company’s margin. These products provide less margin and profitability to an organization
    May 25, 2010 http://deepakagrawalblog.wordpress.com/
  • 14.
    • Business Model
    • Once Business Strategy was developed then the next step is to build business model for each & every Blue Ocean & Red Ocean products
    • Corporate Strategy
    May 25, 2010 http://deepakagrawalblog.wordpress.com/ Business Model Product 1 - BOP * BOP - Blue Ocean Product (Blue Ocean Strategy) Product 2 -ROP Product 3 -ROP Product 4 -ROP Business Model Business Model Business Model Product 1 -ROP Services 1 - BOP Product 1-ROP Product 2 -ROP Services 2 -ROP Product 2 - BOP Product 3 -ROP Product 3 -ROP Product 4 -ROP Services 3 -ROP Services 4 -ROP Services 5 -ROP ** ROP - Red Ocean Product (Red Ocean Strategy) Business 1 IT Services Business 2 Telecommunication Business 3 Financial Services Business 4 Retail
  • 15.
    • Blue Ocean Business Model needs to be continuously monitor by comparing company’s value curve with competitor’s value curve to see whether competitors are trying to imitate the company’s products & services. Organization should get maximum benefit of Blue Ocean product by continuously investing in operational efficiency till their value curve doesn’t match with competitors value curve.
    May 25, 2010 http://deepakagrawalblog.wordpress.com/
  • 16.
    • Red Ocean Model should be continuously updated & changed with changes in business environment, competitors strategy, market concentration, govt. policies
    • and merger & acquisition in industry etc.
    May 25, 2010 http://deepakagrawalblog.wordpress.com/
  • 17.
    • Corporate Strategy of an organization should be regularly monitor by top management. Portfolio of business needs to be churning out as per changes in global environment & occurrence of unexpected circumstances
    • Organization should continuously invest in Research & Development and ready with another Blue Ocean Product once existing Blue Ocean Product falls in Red Ocean category as competitors imitate company’s strategy
    May 25, 2010 http://deepakagrawalblog.wordpress.com/
  • 18.
    • Thank You
    • Please provide your feedback. Your feedback will be highly appreciated
    • For more information please contact:
    • Deepak Agrawal
    • [email_address]
    • http://www.deepakagrawalblog.wordpress.com/
    • http://in.linkedin.com/in/deepakagrawal2009
    May 25, 2010 http://deepakagrawalblog.wordpress.com/