Separation of Lanthanides/ Lanthanides and Actinides
Innovative Performance of Nintendo
1. Wii -Expanding
The
Imagination
6 April 2009
Presented By: DC-TECH
2. Outline
• Background
• Industry Lifecycle and Technology Trajectory
• Blue Ocean Strategy
• Assets and Resources
• Innovation Processes
• Conclusion & Recommendations
• Q&A
3. Presentation Objective
To create a common understanding of Nintendo’s
innovative performance on Wii through the following:
• Industry lifecycle & technology trajectory
• Strategic approach
• Position of assets and resources
• Innovation processes
4. Company Facts
• Established in 1889 in Kyoto, Japan
• Nintendo Company Ltd. is a global company
located in Japan (Kyoto-HQ), USA, Canada,
Australia, Germany, France, Neatherlands,
Spain, Belgium, UK, Italy, South Korea and
China (JV under iQue Ltd).
• Nintendo offers hardware and software
entertainment product in the home
entertainment market
• Main competitors are Sony (Playstation) and
Microsoft (XBox)
• Known for embracing the “Blue Ocean
Strategy”, Nintendo star products includes
Wii and Nintendo DS
• In 2007, Nintendo ranked 8th on the list of
largest software companies in the world.
Source: Wikipedia. Nintendo Annual Report 2008
5. Games Evolution at Nintendo
1889 1980 2000 2006
• 1889 - Fusajiro Yamauchi sold Japanese Hanafuda playing cards in Kyoto, Japan.
• 1977 - Developed Nintendo's first home video game machines , TV Game 15 and TV Game 6.
• 1980 - Developed GAME & WATCH, the first portable LCD video games with a microprocessor.
• 1985 - Released the Nintendo Entertainment System (NES) . The Super Mario Bros . became a smash hit
around the world.
• 1989 - Introduced Game Boy, the first portable, hand-held game system with interchangeable game paks, in Japan
and the U.S.
• 2001 - Launched Nintendo GameCube
• 2006 - Launched Nintendo DS Lite, and Nintendo Wii.
6. Outline
• Background
• Industry Lifecycle and Technology Trajectory
• Blue Ocean Strategy
• Assets and Resources
• Innovation Processes
• Conclusion & Recommendations
• Q&A
7. Video Games Industry Life Cycle
(before Wii)
% Growth
(Unit sales)
• Market saturated
• Since year 2000, the
industry sees single
digit growth (~7%)
• Mostly replacement with
newer release, ie.
Playstation3, etc
instead of getting new
customers
• Lack of penetration into
new market segments,
ie. Non-gamers, young
and older segments
Industrial growth will need a technology
paradigm and technology trajectory. (Dosi)
Introduction Growth Maturity Decline
Source: Lecture Notes , GRabstats.com
8. Factors influencing Nintendo
Technological Factors
Social Factors Availability of advance motion
Mass market adoption sensor and wireless technology
of wireless lifestyle, from other industry and powerful
such as mobile phones, semiconductor technology
MP3
Games
Console Technological Trajectory
Technology
Economic Factors Political Factors
Competitive pressure from Pressure on games console
Microsoft and Sony on both manufacturer to reduce violence
technological ground and market in games and negative influence
share on the youth market
Source: Palermo Business Review , interview notes from www.nintendo.com, www.innosight.com
9. Technological Trajectory
Time
Disruptive Incremental
Innovation Innovation
Disruptive Nintendo Wii Microsoft Xbox
Sony Playstation
Nintendo Wii
Motion sense Hardware
controller provides (consoles) with
wireless freedom more powerful
to users processors
Graphics are Better quality and
simple sharper graphics
Games engages More
Incremental the whole family sophisticated
Microsoft Xbox game play
Sony Playstation
Levels of Innovation
Source: Palermo Business Review | Nº 2 | 2008
10. Video Games Industry Life Cycle
(after Wii)
% Growth Original life cycle Renewed life cycle
(Unit sales)
Launch
of Wii Year 2007 sees
double digit growth
~11%, it is expected
by 2012, *190 million
household in USA
alone will use next-
generation video
games console.
2006
Source: Lecture Notes, *Grabstats.com
11. Outline
• Background
• Industry Lifecycle and Technology Trajectory
• Blue Ocean Strategy
• Assets and Resources
• Innovation Processes
• Conclusion & Recommendations
• Q&A
12. Nintendo locked into red ocean
before Wii
• In 2005 PS2 installed base was115
million vs Nintendo GameCube <20
million
• Trying to improve marginally the gaming
experience and competing for
marketshare
• Not possible to catch up with the
technological ground of Microsoft and
Sony
• Competitors targeting gaming audience
(age 18-34) vs GameCube (age 7-16)
• GameCube left out expanding DVD
player market and early internet
connection
If Nintendo was to succeed in the current generation of
videogames, it needed radical changes to its strategy and market
focus
Source: Palermo Business Review | Nº 2, 2005, Kim and Mauborgne, www.innosight.com
13. Changed the rules of the game with
the launch of Wii
• Recognized mistakes and
made radical changes to its
strategy
o User oriented
o Casual gamers
o Playing with family and friends
• By using a Blue Ocean
Strategy
o Creating demand in places
where there was none, hence
expanding the market
• Disruptive strategy where
past success paradigms are
broken and new ones written
Source: Palermo Business Review | Nº 2, 2005, Kim and Mauborgne, www.innosight.com
14. Wii’s value curve
• Value curve has two purposes
o Understand where
competition is investing and
their strategic direction
o Understand consumer
perception of offerings
• Graphic depiction of Wii’s
relative performance across its
industry’s factors of
competition
The difference with Wii is that its focusing on factors important to
customers besides the technical factors
Source: Palermo Business Review | Nº 2, 2005, Kim and Mauborgne, www.innosight.com
15. Wii’s value curve
Source: Palermo Business Review | Nº 2, 2005, Kim and Mauborgne, www.innosight.com
16. Wii created a value curve that
catapulted the product to success
• Eliminate-Raise-Reduce-
Create grid key to breaking
trade-off between differentiation
and low cost
• Lower price, higher profit on
console
o Eliminating/reducing expensive
components not valuable to
target audience
• Increasing overall revenues
o Motion sensor controller
hardware is necessary to the
Wii platform
o Accessories unlock a more
participative gaming
experience
Source: Palermo Business Review | Nº 2, 2005, Kim and Mauborgne, www.innosight.com
17. The result of the strategy
• Revenue growth has sky-rocketed and so has its popularity
• Only viable response so far has been price cuts in the
competitors, reinforcing Wii’s success
Source: Palermo Business Review | Nº 2, 2005, Kim and Mauborgne, www.innosight.com
18. Outline
• Background
• Industry Lifecycle and Technology Trajectory
• Blue Ocean Strategy
• Assets and Resources
• Innovation Processes
• Conclusion & Recommendations
• Q&A
19. Some assets supporting Nintendo’s
innovative performance
Classes of assets Wii PS3 Xbox360
(including resources) Nintendo Sony Microsoft
Technical • Low cost hardware • High cost hardware • High cost hardware
• Consoles ease of use • Consoles complexity • Consoles complexity
• Controllers motion • Joystick and pads • Joystick and pad
detector • Complex to develop games • Complex to develop games
• Simple to develop
games
Complementary • Nearly all production • Estimated 40% of • Had to streamline
outsourced, flexibility production in-house production to reduce cost
• Untraditional marketing • Traditional marketing • Traditional marketing
• Exergaming • Not applicable • Not applicable
Financial • Profit per console US$ • Loss per console US$ • Profit per console US$
49 306.85 75.70
• Cost of developing • Cost of developing games • Cost of developing games
games 30-50% vs app. US$ 10-12 million per app. US$ 10-12 million per
Organisational and • competitors
Operates in one • game
Operates in several • game
Operates in several
Structural industry industries industries
Reputational and • Gaming system • Multimedia entertainment • Multimedia entertainment
Market • SW and HW in sales hub hub
• Low price • SW and HW sold seperately • SW and HW sold seperately
• Higher price • Higher price
For more information on Assets refer to Appendix
Source:
2009 Ali Farhoomand Asia Research Centre HK, Annual reports Sony & Microsoft, 1997 David J. Teece, Gary Pisano and Amy Shuen, Sony Corp Ryan
Bogner Peter Hung et all, www.money.cnn.com, www.sony.net, www.accessmylibrary.com, www.dd.dynamicdiagrams.com, www.washingtonpost.com
20. Outline
• Background
• Industry Lifecycle and Technology Trajectory
• Blue Ocean Strategy
• Assets and Resources
• Innovation Processes
• Conclusion & Recommendations
• Q&A
28. Outline
• Background
• Industry Lifecycle and Technology Trajectory
• Blue Ocean Strategy
• Assets and Resources
• Innovation Processes
• Conclusion & Recommendations
• Q&A
29. Conclusions
• Innovation is not just about following a road map but also about using
theories and models relevant to the company’s vision. Nintendo has
successfully open new ground with the application of Blue Ocean strategy
and setting their company vision with customer in mind.
• Nintendo Wii is a good example that innovation does not necessarily lead to
very sophisticated and highly expensive product.
• Nintendo’s Corporate culture allowed the freedom to accept internal and
external ideas. The whole organization also fully support execution of new
ideas.
• Blue Ocean strategy is not magic, it still requires a complete and practical
plan to implement and execute the ideas from product development to
market launching in order to gain success.
30. Recommendations
• Nintendo should ensure there is knowledge transfer from the senior
officers to the next generation of staff to ensure sustainability.
• Nintendo need to advanced into 5th generation development process.
• Nintendo should also leverage on building brand reputation and
recognition to be competitive versus new entrants.
• Competitors can also use blue ocean so do not forget Micheal
Porters traditional strategy frameworks.
32. For some time we have believed the game industry is
ready for disruption. Not just from Nintendo, but from all
game developers. It is what we all need to expand our
audience. It is what we all need to expand our
imaginations.
- Satoru Iwata, president of Nintendo Co. Ltd
33. Outline
• Background
• Industry Lifecycle and Technology Trajectory
• Blue Ocean Strategy
• Assets and Resources
• Innovation Processes
• Conclusion & Recommendations
• Q&A
35. References
1. Assets in Nintendo. Downloaded from: http://wii.gamespy.com/articles/943/943524p1.html as at 24 March 2009
2. December 2008 US Games Industry Summary. Downloaded from: http://www.neoseeker.com/news/9647-december-
2008-npd-nintendo-dominates-the-christmas-season as at 20 March 2009
3. Design process of wii, Round table Interview with company President. Downloaded from:
http://www.nintendo.com/wii/what/iwataasks/volume-1/part-1.html to part-3.html as at 25 March 2009.
4. Design process of Nintendo wii. Downloaded from: http://www.nintendo.com/wii/what/iwataasks/volume-2/part-1.html to
part-3.html as at 26 March 2009.
5. Development process of wii downloaded from: http://www.nintendo.com/wii/what/iwataasks/volume-3/part-1.html to
part-6.html as at 28 March 2009.
6. Development process of Nintendo wii . Downloaded from: http://www.nintendo.com/wii/what/iwataasks/volume-4/part-
1.html to part-4.html as at 26 March 2009 .
7. Expert analysis on Nntendo as disruptive innovation. Downloaded from: www.innosight.com as at 22 March 2009
36. References Cont.
8. Fackler, Martin., The New York Times: ‘Putting the We Back in Wii’ June 8, 2007
9. Farhoomand, A. (2009). ’Nintendo’s disruptive strategy: Implications for the video game industry*. Asia Research Centre.
The University of Hong Kong
10. Giovanni Dosi (1982). ’ Technological paradigms and technological trajectories’
11. Kim and Mauborgne (2005). ’Blue Ocean Strategy: How to Create Uncontested Market Space and Make the
Competition Irrelevant’. Harvard Business School Press
12. Nasir, R. (2009). Technological Trajectories class 3, Pg 1. and Processes class 5. Innovation Management Lecture
Notes.
13. Nintendo Annual Report 2008. Downloaded from Wikipedia as of 26 March 2009
14. Nintendo Staff Interview with Iwata, Nintendo.com. Downloaded from:
http://www.nintendo.com/wii/what/iwataasks/volume-extra/part-1, as at 13 March 2009.
15. Nintendo’s third party affiliates, December 28th, 2008 Posted in Features, Wii, Written by Valay
37. References Cont
16. Nintendo facts, Wikipedia. Downloaded from: http://en.wikipedia.org/wiki/Nintendo, as at 13 March 09
17. Palemo Business Review. Downloaded from: http://www.nintendo.com/wii/what/iwataasks/volume-1/part-1.html to part-
3.html as at 20 March 2009
18. Patricio O’Gorman (2008). ’ Wii: Creating a Blue Ocean. The Nintendo Way’. Palermo Business Review | Nº 2.
19. Resources of Nintendo. Downloaded from: http://www.nintendo.com/countryselector.http://en.wikipedia.org/wiki/Nintendo.
http://advice.cio.com/thomas_wailgum/woe_is_wii_the_curious_case_of_nintendos_supply_chain_plans?page=0%2C1.
http://www.businessweek.com/managing/index.html as at 25 March 2009
20. Rothwell, Roy. Towards the Fifth-generation Innovation Process. International Marketing Review, Vol. 11 No. 1, 1994, pp.
7-31 MCB University Press,0265 - 1335
21. Scott D. Anthony (2006). ‘Wii, Zune, and Nonconsumption’
22. Sony's Sudden Samurai , MARCH 21, 2005 . Downloaded from:
http://www.businessweek.com/magazine/content/05_12/b3925031_mz011.htm as at 29 March 2009
23. "Sony's Revitalization in the Changing CE World" , Oct. 4, 2005. Downloaded from:
http://www.sony.com/SCA/speeches/051004_stringer.shtml as at 29 March 2009
38. References Cont.
24. Tack, T.W (Director). Managing In An Uncertain Economic Environment; Stone Forest Corporate Advisory.
25. Taub, Eric. The New York Times: ‘Nintendo at AARP Event to Court the Grayer Gamer’ October 30, 2006
26. Teece, D. ; Pisano, G and Shuen, A. (1997). ’Dynamic Capabilities and Strategic Management’. Strategic Management
Journal, Vol. 18:7, 509-533
27. Teece, D. (1986). ’Profiting from technological innovation: Implications for integration, collaboration, licensing and public
policy’. Research Policy 15 285-305
28. Tidd, J. , Bessant, J. & Pavitt, K. (2005). Managing Innovation: Integrating Technological, Marketing and Organizational
Change. (3rd Edition). Jin Xing Distripark , Singapore; John Wiley & Sons
29. Vargas, A. (2005). "Outside the Box, Jonathan Hayes Gave Shape To Microsoft's Game Console" .
Washington Post Staff Writer, Tuesday, November 22, 2005. Downloaded from:
http://www.washingtonpost.com/wp-dyn/content/article/2005/11/21/AR2005112101631_pf.html as at 28 March 2009
30. Video Games Industry Stats Overview, GRABstats.com,. Downloaded from: http://grabstats.com/statcategorymain.asp?
StatCatID=13, as at 13 March 2009
31. Critisisms to Blue Ocean Strategy. Downloaded from:
http://en.wikipedia.org/wiki/Blue_Ocean_Strategy, as at 31 March 2009
39. Appendix
• The Video Game Industry
• Timeline
• Type of trajectory
• Some assets supporting Nintendo’s innovative performance
• December 2008 US Games Industry Summary
• December 2008 US Hardware Sales
• How many does the company affiliate (third part) with?
• Critisisms to the Blue Ocean Strategy
40. The Video Game industry
• Born in the 1970s
o Atari (US) and Namco (Japan) brought arcade games found in malls and
video game arcades
o Video games into households through Introduction of home consoles
o Targeting teenagers
• 1980s PC games, playing not limited to proprietary consoles
• Sony introduced PS in mid-1990s
o Targeting also young adults
• Sony launched PS2 in 2000
• Microsoft as a response launched Xbox in 2001
• Early 2000 convergence of IT, Telco, Media and Entertainment
o Sony and Microsoft saw opportunities for playing a greater role than
pure entertainment through Home Entertainment centres.
• Video game hardware industry dominated by Nintendo, Sonys PS
family and Microsoft with Xbox 360
Source:
2009 Ali Farhoomand Asia Research Centre HK
41. Timeline
• 1889 - Fusajiro Yamauchi began manufacturing and selling Japanese Hanafuda playing cards in Kyoto, Japan.
• 1959 - Started selling cards printed with Walt Disney characters.
• 1963 - Changed company name to Nintendo Co., Ltd. Started manufacturing and selling games and toys.
• 1970 - Started selling the Beam Gun series, employing opto-electronics.
• 1973 - Developed the Laser Clay shooting-range system to succeed bowling as a major pastime.
• 1974 - Developed image projection system employing 16mm film projector and entered into the arcade business. Began
exporting systems to the U.S. and Europe.
• 1977 - Developed Nintendo's first home video game machines, TV Game 15 and TV Game 6.
• 1980 - Developed and started selling GAME & WATCH product line, the first portable LCD video games with a microprocessor.
• 1983 - Started selling the home video game console Family Computer System employing a custom CPU (Central Processing
Unit) and PPU (Picture Processing Unit).
• 1985 - Released the Nintendo Entertainment System (NES). The Super Mario Bros. became a smash hit around the world.
• 1989 - Introduced Game Boy, the first portable, hand-held game system with interchangeable game paks, in Japan and the
U.S.
• 1990 - Nintendo enters the 16-bit console market with the release of the Super Famicom in Japan.
• 1998 - Nintendo introduces Game Boy Color along with innovative devices called the Game Boy Camera and Printer, bringing
new life to the longest running hit in the history of interactive entertainment. Pokémon, a breakthrough game concept for Game
Boy, is introduced overseas and generates an international craze to catch 'em all! Pokémon the 1st movie is released in Japan.
Nintendo introduces Hey You, Pikachu! in Japan with Nintendo 64 VRS, the first Voice Recognition System for console video
games.
• 2001 - Started selling Mobile Adapter GB system in Japan, which links Game Boy Color and Game Boy Advance to cell
phones. Launched Nintendo GameCube in Japan and in the U.S. e-Reader, which scans special barcodes printed on paper
cards, is introduced as a peripheral for Game Boy Advance. Introduced Nintendo GameCube Game Boy Advance Cable to
connect Nintendo GameCube with Game Boy Advance.
• 2004 - Launched the hand-held gaming device Nintendo DS, which opened up a new style of entertainment with its dual
screens, touch control, wireless communication, and voice recognition technology, launched in Japan and in the U.S.
• 2006 - Launched Nintendo DS Lite, and Wii.
• 2007 - Released Wii Fit in Japan.
Source: Nintendo Annual Report 2008
42. Type of trajectory (appendix)
Supplier-dominated Scale-intensive Science-based Information-intensive Specialized supplier
Typical Core Product Agriculture Bulk materials Electronics Finance Machinery
Services Consumer durables Chemicals Retailing Instruments
Traditional Automobiles Publishing Software
manufacture Civil engineering Travel
Main sources of Suppliers Production engineering R&D Software & systems Design
technology Production learning Production learning Basic research dept Advanced users
Suppliers Suppliers
Design offices
Main task of innovation strategy
1. Positions Based on non- Cost effective & safe Develop technically New products & Monitor & respond to
technological complex products and related products services user needs
advantages processes
2. Paths Use of IT in finance Incremental Exploit basic Design & operation of Matching changing
and distribution integration of new science complex information technologies to users’
knowledge processing systems needs
3. Processes Flexible response to Diffusion of best practice Obtain To match IT-based Strong links with lead
user in design, production & complementary opportunities with user users
distribution assets needs
43. Some assets supporting Nintendo’s
innovative performance
Classes of assets Wii PS3 Xbox360
(including resources) Nintendo Sony Microsoft
Technical • Low cost hardware • High cost hardware • High cost hardware
• Home gaming system • Home entertainment system • Home entertainment
• Console ease of use • Console complex to use system
• Controllers motion • Joystick and pads • Console complex to use
detector • Complex to develop games • Joystick and pad
• Simple to develop • Complex to develop games
games
Complementary • High sales of games and • Lower sales of games and • Lower sales of games and
accessories accessories accessories
• Nearly all production • Estimated 40% of • Had to streamline
outsourced, flexibility production in-house production to reduce cost
• Marketing by word-of- • Traditional advertising or • Traditioal advertising or
mouth, YouTube and social mass-media ampaigns mass-media ampaigns
networking • Not applicable • Not applicable
• Exergaming
Financial • Installed base July 2008 • Installed base July 2008 • Installed base July 2008
35,59 million PS3 15,9 million 18,49 million
• Profit per console US$ • Loss per console US$ • Profit per console US$
49 306.85 75.70
• Cost of developing • Cost of developing games • Cost of developing games
games 30-50% vs app. US$ 10-12 million per app. US$ 10-12 million per
competitors game game
• Titles developed by 3rd
• First party titles developed • Titles developed by 3rd parties giving 10-15% of
in-house giving 100% of parties giving 10-15% of revenue
revenue revenue
Source: next slide
44. Some assets supporting innovative
performance
Classes of assets Wii PS3 Xbox360
(including resources) Nintendo Sony Microsoft
Organisational and • Operates in one • Operates in several • Operates in several
Structural industry and lead by industries industries
gaming-experts, focus • Limiting cross-company • Structured processes
• Split into 5 teams who work cohesion by ”Silo- through large and
on different projects organisation” distributed world-wide team
Reputational and • Play with family and friends • ”Play alone in the dark” • ”Play alone in the dark”
Market • Targeting non-gamers • Targeting existing gamers • Targeting existing gamers
• Position as gaming • Positioned as multimedia • Positioned as multimedia
system entertainment hub entertainment hub
• SW and HW in sales • SW and HW sold seperately • SW and HW sold
• Lower price than • Higher price seperately
competitors • Higher price
Source:
2009 Ali Farhoomand Asia Research Centre HK, Annual reports Sony & Microsoft, 1997 David J. Teece, Gary Pisano and Amy Shuen, Sony Corp Ryan
Bogner Peter Hung et all, www.money.cnn.com, www.sony.net, www.accessmylibrary.com, www.dd.dynamicdiagrams.com, www.washingtonpost.com
45. December 2008 US Games
Industry Summary
• Total Sales - $5.29
billion USD
• Hardware Sales -
$1.88 billion USD
• Software Sales -
$2.75 billion USD
• Accessory Sales -
$662 million USD
Source: http://www.neoseeker.com/news/9647-december-2008-npd-nintendo-dominates-the-christmas-season
46. December 2008 US Hardware
Sales
• Platform Unit Sales Unit Sales Year-to-Date Lifetime Dec 08 to Dec 07
per Week -to-Date Unit change
1.Nintendo DS 3,040,000 608,000 9,951,100 27,503,000 +570,000
2.Nintendo Wii 2,150,000 430,000 10,170,000 17,541,000 +800,000
3.Microsoft Xbox 360 1,440,000 288,000 4,748,400 13,889,000 +180,000
360
4.Sony PlayStation 1,020,000 204,000 3,829,100 14,247,000 -40,000
Portable
5.Sony PlayStation 3 726,000 145,200 3,544,800 6,788,000 -71,600
6.Sony PlayStation 2 410,000 82,000 -690,000
Source: http://www.neoseeker.com/news/9647-december-2008-npd-nintendo-dominates-the-christmas-season/
47. How many does the company
•
affiliate (third part) with?
*Become an affiliate • Handheld Wii • NintendoStar • Wii Accessories
• Balance Board Blog • My Wii Center • NokoNoko • Wii Cheats
• Codename Revolution • Ninfando • Playstation Access • Wii Cheats and Codes
• Cubed3 • Nintendo Fan Forum • pure nintendo • Wii Fit
• Final Fantasy Series • Nintendo Forum • The Bell Tree • Wii Fit in stock checker
• Game On Nintendo • Nintendo Gamer • The Nintendo • Wii Network
Basement
• Gaming News • Nintendo Jump • The Nintendo Fangirl • Wii Plasma
• Gekinzuku • Nintendo Wii Cheats • The Tanooki • WiiCharged
• Get N or Get Out • Nintendo Worlds • TWGNews • XboxFamily
• GTAPla.net • Nintendo Cosmos UberScore Xtra Gamer
Source: December 28th, 2008 Posted in Features, Wii, Written by Valay
48. Criticism to Blue Ocean Strategy
• At the present there are few if any success stories of companies that applied Blue Ocean
theories to find uncontested market place.
• Is the book and its related ideas descriptive rather than prescriptive?
• The research process followed by the authors has been criticized
o No control group
o No way to know how many companies exploiting a blue ocean strategy concept failed.
o The theory therefore does not meet the falsifiability criteria in practice.
o A deductive process was not followed. The examples in the book are selected to "tell a
winning story".
• Brand and communication are taken for granted and do not represent a key for success. Kim
and Maubourgne take the marketing of a value innovation as a given, assuming the marketing
success will come as a matter of course.
• The book only presents a snaphot overview of 3 industries: automobiles, computers and movie
theaters.
• It is argued that rather than a theory, Blue Ocean Strategy is an extremely successful attempt
to brand a set of already existing concepts and frameworks with a highly "sticky" idea.
o The blue ocean/red ocean analogy is a powerful and memorable metaphor
o The concepts behind the Blue Ocean Strategy (such as the competing factors, the
consumer cycle, non-customers, etc.) are not new.
• The book does not explain the most critical aspect that of differentiation between a product
innovation which may have the same target users, or a different product, a different way of
execution of the same and different market all together.
Source: www.wikipedia.com
