Strategic group like luxury automobiles, economy cars, and family vihicles.
The horizontal axis captures the range of factors the industry competes on and invests in. In this case U.S. Transit Bus service competes on 5 principles. That is the underlying structure of the U.S. Transit Bus service from market perspective. Now turn to the vertical axis of the canvass which captures the offering level that the buyer receive across all these key competing factors. A high scores means the company offers buyers more, and hence invests more, in that factor. In the case of price , a higher score indicates a higher price.
Typically, to grow their share of a market, companies strive to retain and expand existing customers. This strategy often risk creating too-small target markets. In order to create Blue Ocean Strategy companies should look at non-customer and focus on their key commonalities-not differences; and de-segmentation before pursuing finer segmentation. There are 3-tier of non-customer- 1st-tier of non-customer-This kind of customer sits on the edge of the market. They are buyers who minimally purchase an industry's offering out of necessity but are mentally non-customers of the industry. 2nd-tier of non-customer- This kind of non-customer is people who refuse to use your industry's offering. These are buyers who have seen your industry's offerings as an option to fulfill their needs but have voted against them. 3rd-tier of non-customer- This kind of non-customer is farthest from your market. They are non-customers who have never thought of your market's offerings as an option. By focusing on key commonalities across these non-customers and existing customers, companies can understand how to pull them in their new market.
20 20 Cricket Blue Ocean Strategy
20- 20 Cricket Blue Ocean CRICK-ENT
20- 20 Blue Ocean Creates new demand- watching cricket with a family Create and capture new demand 20-20 cricket is a fast pace game innovation which caters to total market segment rather than just cricket lover Create uncontested market space Provides differentiation value at low cost Break value and cost trade-off Caters to consumers emotional appeal by introducing performance of cheer leaders and movie stars Look across functional or emotional appeal to buyers Provides complementary services of entertainment along with cricket Look across complementary product and service offerings Test Cricket and One Day are both longer version of game as compare to 20-20 Make the competition irrelevant Created altogether new industry ”CRICK-ENT” by combining both cricket & entertainment Look across alternative industries 20-20 Cricket Blue ocean strategy
<ul><li>“ Value innovation is a cornerstone of any blue ocean strategy” </li></ul><ul><li>20-20 provides great utility by increasing pace of the game and creates more excitement in shorter version. It combines entertainment with cricket. Indian Premier League (IPL) is a great example of 20-20 cricket’s blue ocean. </li></ul><ul><li>It creates differentiation by introducing the concept of cheer leaders and movie stars in cricket and provides total entertainment at low cost. </li></ul>Cost Buyer Value Value Innovation Value Innovation “ CRICK-ENT”
Low High Time spend Money Spend Pace of the Game Excitement Entertainment Family Involve Certainty of Result Test and One Day Cricket Value curve 20-20 Cricket value curve Strategy canvas / value curve
<ul><li>4 Action framework </li></ul>A new value curve Reduce Time Spend Money spend Uncertainty of Result Create Entertainment New industry “ CRICK-ENT” Raise Pace of the game Excitement Pool of young talent Family Involvement Eliminate Conventional wisdom about cricket
<ul><li>Portfolio of business for Cricket Control board </li></ul>Tomorrow Today Test cricket has become settler and continue to provide marginal growth for the boards. It act as a typical red ocean unless and until some differentiation is created to upgrade it to migrators category. Settlers are the other extreme of the business whose value curves conform to the basic shape of the industry's. It generally not contribute much to a company's future growth. They are stuck within the red ocean. Settlers have marginally growth potential, they are frequently today's cash generators. Settlers In future One Day international will be more of migrators for cricket boards. They try to change the format of a game by introducing PP or other method to provide more for less Migarators lies somewhere in between Pioneers & settlers. Such business extend the industry's curve by giving customers more for less, but they don't alter its basic shape Migrators 20-20 cricket provides fast growth opportunity that caters to mass market. Initially it incurs huge cash outflow. Indian premier league (IPL) is a great example, it made huge expenditure on advertisement and product development however it becomes huge success. It is a future cash-cow of cricket control board Pioneers are the companies blue ocean strategies and they are the most powerful sources of profitable growth. There business has mass following of customers. Pioneers have max. growth potential but often consume cash at the outset as they grow and expand Pioneers
<ul><li>“ Companies should look at non-customers and focus on their key commonalities, not differences and de-segmentation before pursuing finer segmentation” </li></ul><ul><li>3-tier of non-customer </li></ul><ul><li>First tier - “Soon-to-be” non-customers who </li></ul><ul><li>are on the edge of your market, waiting to </li></ul><ul><li>jump in </li></ul><ul><li>Second tier - “Refusing” non-customers </li></ul><ul><li>who consciously choose against your </li></ul><ul><li>customer </li></ul><ul><li>Third-tier – “Unexplored” non-customers </li></ul><ul><li>who are in markets distant from yours </li></ul>Cricket lover doesn’t want to spend whole day/ complete 5 days Second Tier Third Tier Your Market First Tier Family members more inclined towards entertainment than sports Business executives / top leaders/ politicians seldom take out time to watch cricket
<ul><li>Blue ocean idea (BOI) index of 20-20 Cricket </li></ul>Yes Hugely adopted by fans, cricket bodies, Sports community Have you addressed adoption hurdles up front? Adoption Yes Cost structure meet the target cost- IPL is a great example Does your cost structure meet the target cost? Cost Yes Price is easily accessible to mass market Is your price easily accessible to the mass of buyers? Price Yes Entertainment plus Cricket Is there exceptional utility? Are there compelling reason to buy your offering? Utility 20-20 Cricket
20- 20 Cricket Thank You Deepak Agrawal [email_address] http://in.linkedin.com/in/deepakagrawal2009