1) Value innovation is created when a company's actions favorably affect both its cost structure and value proposition to buyers, eliminating factors on which the industry competes while raising and creating new elements.
2) It focuses on making competition irrelevant by creating a leap in value for buyers and the company, opening new uncontested market space.
3) Value innovation aligns innovation with utility, price, and cost positions to break the value-cost trade-off and drive costs down while raising buyer value.
This is a partial preview of the document found here:
https://flevy.com/browse/business-document/blue-ocean-strategy-primer-113
Description:
A great complement to the best selling book "Blue Ocean Strategy." Each chapter is summarized in one printer-friendly slide. Points that require more in-depth explanation are developed into additional slides. Save time and get a quick refresh with this primer for you to enjoy.
The Blue Ocean Strategy is the art and science of making the competition irrelevant by creating uncontested market spaces. It is the mantra for winning in the marketplace without fighting the war. It argues that the best business strategy is to stop competing against competitors and create a blue ocean opportunity – a marketplace without any competition. Blue Ocean Strategy focuses on value innovations and lifting buyer values that could result in making conventional competition irrelevant and extend the industry boundaries and thereby creating un contested market space by tapping the untapped market space or by creating demand.
This is part 2 of the webinar series. In this part we will see how companies like zynga, khan academy and indochino have successfully applied the Principles of Blue Ocean Strategy.
Blue Ocean Strategy - Making Competition Irrelevant - Part 1Regalix
Every company today is in search of sustained profitable growth and competitive advantage; companies are competing hard amongst each other for customers, market share, cost leadership, value leadership etc. Despite best efforts no one’s winning because it’s still a zero – sum game for the industry because the size of the market is fixed and everybody is doing same or similar things resulting in negligible differentiation or innovation.
The Blue Ocean Strategy is the art and science of making the competition irrelevant by creating uncontested market spaces. It is the mantra for winning in the marketplace without fighting the war. It argues that the best business strategy is to stop competing against competitors and create a blue ocean opportunity – a marketplace without any competition. Blue Ocean Strategy focuses on value innovations and lifting buyer values that could result in making conventional competition irrelevant and extend the industry boundaries and thereby creating un contested market space by tapping the untapped market space or by creating demand.
In this first of the two part webinar series - you would be introduced to the following concepts and frameworks through interactive and latest case studies:
Red Oceans and Blue Oceans
Creating Strategy Canvas
The Four Actions Framework
The Three Tiers Of Non Customers
This presentation series is derived from the most acknowledged best seller “The Blue Oceans Strategy” published in 2005, by Prof. Chan Kim and Renee Mauborgne of INSEAD.
This document discusses the concept of blue ocean strategy, which involves creating new market space rather than competing in existing or "red ocean" markets. It explains that blue oceans are defined by untapped market demand, while red oceans involve competition over existing demand. The document outlines principles for formulating a blue ocean strategy, including reconstructing market boundaries, focusing on the big picture rather than numbers, and getting the strategic sequence right. Tools for blue ocean strategy creation are presented, such as the strategy canvas for mapping the current industry state and a company's strategic moves, and the four actions framework for eliminating, reducing, raising, and creating strategic factors. Characteristics of effective blue ocean strategies and risks to avoid with red ocean thinking are also summarized
This document provides an introduction to blue ocean strategy concepts including:
1) It describes the difference between red and blue oceans, with red oceans representing crowded, competitive markets and blue oceans representing new market spaces with opportunities for highly profitable growth.
2) It introduces the concepts of value innovation and creating blue oceans by aligning innovation with utility, price, and cost positions to break the value-cost trade-off and create new market demand.
3) It outlines the key analytical tools for formulating a blue ocean strategy including the strategy canvas to map the current competitive landscape, and the four actions framework of eliminate, reduce, raise, and create to reconstruct buyer value and shift the strategy canvas to open new blue ocean
The document summarizes key concepts from Blue Ocean Strategy, including:
1. Value innovation focuses on making competitors irrelevant by creating value for buyers and the company, opening new market space.
2. The strategy canvas is used to analyze an industry's factors of competition and a company's offerings relative to competitors.
3. Blue ocean strategy aims to reconstruct industry boundaries and break the value-cost tradeoff to drive differentiation and low costs simultaneously.
Value innovation creates value for both buyers and the company by reducing costs through eliminating unnecessary factors while also increasing buyer value by introducing new elements. It aims to break the trade-off between low costs and differentiation.
Blue ocean strategy seeks to create new market space by making competitors irrelevant and capturing new demand rather than competing head-to-head in existing markets. It breaks the value-cost tradeoff through eliminating, reducing, raising and creating factors compared to industry standards.
The buyer utility map outlines six stages of the buyer experience and six levers companies can use to deliver exceptional utility at each stage from purchase to disposal.
This is the concluding presentation of a two part webinar for Blue ocean strategy.
The presentation introduces the audience to the core principles of Blue Ocean Strategy - which comprise of the six steps viz 1) Reconstructing Market Boundaries 2) Focusing on the Big Picture 3) Reaching Beyond Existing Demand 4) Getting the strategic sequence right 5) Overcoming organizational Challenges 1) Building execution into strategy.
The presentation also focuses on How the Boundaries can be reconstructed with 6 Paths Framework, How one can focus on big Picture by utilizing the visual strategy framework and PMS Maps, How One can reach beyond the existing demand by utilizing the Three tiers of Non Customers framework, How one can get their strategic sequence right by utilizing the buyer utility map, Price corridor of masses and overcoming organization hurdles framework.
The presentation also details on how to overcome the organizational hurdles and ways of building execution into strategy.
This presentation is aimed at explaining the greatness of Blue ocean strategy thinking to general audience through simple means and examples and does not imply distortion of facts and frameworks of the original Authors: Chan Kim, Renee Mauborgne
This is a partial preview of the document found here:
https://flevy.com/browse/business-document/blue-ocean-strategy-primer-113
Description:
A great complement to the best selling book "Blue Ocean Strategy." Each chapter is summarized in one printer-friendly slide. Points that require more in-depth explanation are developed into additional slides. Save time and get a quick refresh with this primer for you to enjoy.
The Blue Ocean Strategy is the art and science of making the competition irrelevant by creating uncontested market spaces. It is the mantra for winning in the marketplace without fighting the war. It argues that the best business strategy is to stop competing against competitors and create a blue ocean opportunity – a marketplace without any competition. Blue Ocean Strategy focuses on value innovations and lifting buyer values that could result in making conventional competition irrelevant and extend the industry boundaries and thereby creating un contested market space by tapping the untapped market space or by creating demand.
This is part 2 of the webinar series. In this part we will see how companies like zynga, khan academy and indochino have successfully applied the Principles of Blue Ocean Strategy.
Blue Ocean Strategy - Making Competition Irrelevant - Part 1Regalix
Every company today is in search of sustained profitable growth and competitive advantage; companies are competing hard amongst each other for customers, market share, cost leadership, value leadership etc. Despite best efforts no one’s winning because it’s still a zero – sum game for the industry because the size of the market is fixed and everybody is doing same or similar things resulting in negligible differentiation or innovation.
The Blue Ocean Strategy is the art and science of making the competition irrelevant by creating uncontested market spaces. It is the mantra for winning in the marketplace without fighting the war. It argues that the best business strategy is to stop competing against competitors and create a blue ocean opportunity – a marketplace without any competition. Blue Ocean Strategy focuses on value innovations and lifting buyer values that could result in making conventional competition irrelevant and extend the industry boundaries and thereby creating un contested market space by tapping the untapped market space or by creating demand.
In this first of the two part webinar series - you would be introduced to the following concepts and frameworks through interactive and latest case studies:
Red Oceans and Blue Oceans
Creating Strategy Canvas
The Four Actions Framework
The Three Tiers Of Non Customers
This presentation series is derived from the most acknowledged best seller “The Blue Oceans Strategy” published in 2005, by Prof. Chan Kim and Renee Mauborgne of INSEAD.
This document discusses the concept of blue ocean strategy, which involves creating new market space rather than competing in existing or "red ocean" markets. It explains that blue oceans are defined by untapped market demand, while red oceans involve competition over existing demand. The document outlines principles for formulating a blue ocean strategy, including reconstructing market boundaries, focusing on the big picture rather than numbers, and getting the strategic sequence right. Tools for blue ocean strategy creation are presented, such as the strategy canvas for mapping the current industry state and a company's strategic moves, and the four actions framework for eliminating, reducing, raising, and creating strategic factors. Characteristics of effective blue ocean strategies and risks to avoid with red ocean thinking are also summarized
This document provides an introduction to blue ocean strategy concepts including:
1) It describes the difference between red and blue oceans, with red oceans representing crowded, competitive markets and blue oceans representing new market spaces with opportunities for highly profitable growth.
2) It introduces the concepts of value innovation and creating blue oceans by aligning innovation with utility, price, and cost positions to break the value-cost trade-off and create new market demand.
3) It outlines the key analytical tools for formulating a blue ocean strategy including the strategy canvas to map the current competitive landscape, and the four actions framework of eliminate, reduce, raise, and create to reconstruct buyer value and shift the strategy canvas to open new blue ocean
The document summarizes key concepts from Blue Ocean Strategy, including:
1. Value innovation focuses on making competitors irrelevant by creating value for buyers and the company, opening new market space.
2. The strategy canvas is used to analyze an industry's factors of competition and a company's offerings relative to competitors.
3. Blue ocean strategy aims to reconstruct industry boundaries and break the value-cost tradeoff to drive differentiation and low costs simultaneously.
Value innovation creates value for both buyers and the company by reducing costs through eliminating unnecessary factors while also increasing buyer value by introducing new elements. It aims to break the trade-off between low costs and differentiation.
Blue ocean strategy seeks to create new market space by making competitors irrelevant and capturing new demand rather than competing head-to-head in existing markets. It breaks the value-cost tradeoff through eliminating, reducing, raising and creating factors compared to industry standards.
The buyer utility map outlines six stages of the buyer experience and six levers companies can use to deliver exceptional utility at each stage from purchase to disposal.
This is the concluding presentation of a two part webinar for Blue ocean strategy.
The presentation introduces the audience to the core principles of Blue Ocean Strategy - which comprise of the six steps viz 1) Reconstructing Market Boundaries 2) Focusing on the Big Picture 3) Reaching Beyond Existing Demand 4) Getting the strategic sequence right 5) Overcoming organizational Challenges 1) Building execution into strategy.
The presentation also focuses on How the Boundaries can be reconstructed with 6 Paths Framework, How one can focus on big Picture by utilizing the visual strategy framework and PMS Maps, How One can reach beyond the existing demand by utilizing the Three tiers of Non Customers framework, How one can get their strategic sequence right by utilizing the buyer utility map, Price corridor of masses and overcoming organization hurdles framework.
The presentation also details on how to overcome the organizational hurdles and ways of building execution into strategy.
This presentation is aimed at explaining the greatness of Blue ocean strategy thinking to general audience through simple means and examples and does not imply distortion of facts and frameworks of the original Authors: Chan Kim, Renee Mauborgne
Blue Ocean Strategy (BOS) is a framework for creating new market space and making competition irrelevant. It is based on a decade of research on strategic moves spanning over 100 years. BOS aims to create blue oceans of uncontested market space rather than fighting in existing red oceans. It provides tools like the strategy canvas and four actions framework to help formulate strategies that eliminate, reduce, raise, and create factors compared to industry standards. The six principles of BOS guide successful formulation through reconstructing market boundaries and focusing on the big picture rather than numbers. Executing BOS involves overcoming organizational hurdles and building fair processes and tipping point leadership into the strategy.
The document discusses the concept of blue ocean strategy using Cirque du Soleil as an example. It provides an overview of key principles of blue ocean strategy, including reconstructing market boundaries to look across different industries and customer groups, focusing on the big picture rather than numbers, getting the strategic sequence right, and overcoming organizational hurdles to execute new strategies. The document also outlines analytical tools for developing blue ocean strategies, such as strategy canvases and value curves.
The document summarizes key concepts from the book "Blue Ocean Strategy" by W. Chan Kim and Renée Mauborgne. It discusses how companies can create new market space, or "blue oceans", by focusing on value innovation to increase value for customers and decrease costs. It outlines analytical tools like the strategy canvas and frameworks like eliminate-reduce-raise-create to help companies reconstruct market boundaries. Finally, it discusses how to visualize strategy and understand the different tiers of potential customers, including non-customers, to help actualize a viable blue ocean idea.
The document discusses red and blue oceans in business. Red oceans represent existing industries with defined competition, while blue oceans represent uncontested market space without competition. It advocates pursuing differentiation and low cost simultaneously through value innovation to create a blue ocean and make competition irrelevant. Strategies discussed include reducing unnecessary factors, eliminating redundancies, raising what is below standards, and creating new benefits customers value. Analyzing potential new customers, including those on the edge of exiting, refusing, and unexplored markets, is also recommended to open new blue oceans. Examples given of companies creating blue oceans include Ralph Lauren, Pfizer, and Cirque Du Soleil.
Between 1975 and 1995, 60% of Fortune 500 companies were replaced, showing that markets and competitors are constantly changing. Industries and companies continuously rise and fall, so there are no permanently dominant players. Strategic moves that continuously create new value for customers allow companies to stay at the top. Value innovation aims to substantially raise customer value rather than focus only on new technologies. By identifying and serving overall customer needs through an unparalleled value proposition, companies can dominate their market.
This document provides an overview of a Blue Ocean Strategy simulation developed by StratX. The simulation is designed to teach participants about Blue Ocean Strategy concepts developed by W. Chan Kim and Renée Mauborgne. In the simulation, participants manage a fictitious company competing in the game console industry over multiple decision rounds. The rounds progress from competing in existing red ocean markets to attempting to create blue oceans of uncontested market space through value innovation and other Blue Ocean Strategy tools and frameworks.
Using either Porter’s generic strategies or the Strategy Clock, identify examples of organisations following strategies of differentiation, low cost or low price, and stuck-in-the middle or hybrid. How successful are these strategies?
Porter's generic strategies include cost leadership, differentiation, and focus. Cost leadership involves having very low production costs to offer lower prices. Differentiation involves unique product attributes that are valued by customers. Focus involves targeting a narrow market segment and achieving either cost advantages or differentiation within that segment. While these strategies provide advantages against competitive forces, attempting multiple strategies risks being "stuck in the middle" without a clear advantage. Later critics argued generic strategies lack flexibility and specificity, and that there are viable strategies between the extremes.
Michael Porter is a professor at Harvard Business School.
A firm’s success in strategy rests upon how it positions itself in respect to its environment.
Blue Ocean strategy Outguns Red Ocean Strategy - AnshumaliiAnshumali Saxena
This document discusses blue ocean strategy and how it differs from traditional red ocean strategy. It provides examples of companies like Cirque du Soleil that achieved great success by creating new market space rather than competing head-to-head in existing markets. The key aspects of blue ocean strategy are value innovation, which involves raising buyer value and reducing costs, and reconstructing market boundaries to open up new demand. Visual tools like the strategy canvas are recommended to help companies map out blue ocean opportunities and shifts from their current "red ocean" approach. Reaching beyond existing demand by exploring non-customers is also an important part of blue ocean strategy.
The document discusses Michael Porter's generic strategies model which identifies three strategies for gaining competitive advantage - cost leadership, differentiation, and focus. It provides details and examples of each strategy. Cost leadership involves producing standardized products on a large scale at low cost. Differentiation focuses on making the product unique through features, quality, design or service. Focus involves targeting a narrow market segment and achieving either cost advantage or differentiation within that segment. The risks of each strategy are also outlined. The document then provides examples of Dell's successful implementation of virtual integration and targeting of customer segments to achieve cost leadership.
Michael Porter developed the 5 forces framework to analyze industry competition and inform business strategy. The 5 forces include the threat of new entrants, power of suppliers and customers, and threat of substitutes and industry rivals. Porter also described generic strategies of cost leadership, differentiation, and focus that companies can adopt based on 5 forces analysis. The document provides examples of each force and strategy to analyze competitive environments and guide strategic decision making.
Entrepreneur 4: Business Strategies & Rapid Growth StrategiesBernard Leong
The 4th lecture focus on business strategy and models, rapid growth strategies (franchising, mergers & acquisitions), and an introduction to Moore's "Crossing the Chasm", Gartner's Hype Cycle and Porter's 5 Forces.
The document discusses the concept of blue ocean strategy, which involves creating new market space by changing the boundaries of an existing industry. It outlines key principles such as reconstructing market boundaries, focusing on non-customers, and using a strategy canvas to visualize new opportunities. The strategy aims to make competition irrelevant by creating uncontested market space through eliminating or reducing some industry factors while introducing new ones.
Porter's generic strategies include cost leadership, differentiation, and focus. Cost leadership involves having very low production costs, differentiation focuses on making the product unique, and focus involves targeting a narrow customer segment. Firms must choose one strategy to avoid being "stuck in the middle". While generic strategies provide advantages against competitive forces, some critics argue they are too limiting and flexible approaches are also viable.
This is the first presentation of a two part webinar for Blue ocean strategy.
The presentation introduces to red ocean and blue ocean companies, How blue ocean strategy is a simultaneous pursuit of cost and value.
The presentation provides a quick introduction with new age examples to strategy canvas, 6 paths framework, four actions frame work, buyer utility map, 3 tiers of non customers and PMS maps.
The presentation also utilizes these frameworks in showcasing descriptive case studies of companies like netjets, indochino.com, Zynga and khan academy.
This presentation is aimed at explaining the greatness of Blue ocean strategy thinking to general audience and does not imply distortion of facts and frameworks of the original Authors: Chan Kim, Renee Mauborgne
The document summarizes Hyundai Motor Company's launch of its new Genesis model in 2007 to target the high-end car market. It discusses how Hyundai shifted from a strategy of cost leadership to one of differentiation. The company introduced the Genesis to move beyond being seen only as a provider of cheap, decent quality cars in the US market. The Genesis allowed Hyundai to compete in the premium car segment and diversify its strategy for global competitiveness.
The document discusses Porter's three generic strategies: cost leadership, differentiation, and focus. It provides details on each strategy, including the strengths companies need to successfully implement each one and risks involved. It gives examples of companies like McDonalds, Apple, Medimix, and PepsiCo that have used cost leadership, differentiation, or focus strategies.
Este documento proporciona información sobre las redes sociales y la ubicación en línea de CEDOL CÁMARA EMPRESARIA DE OPERADORES LOGÍSTICOS. Incluye sus páginas web, blog y perfiles en Facebook, LinkedIn y Google Maps. También describe brevemente un módulo sobre la conexión estratégica entre la cadena de suministro y el desempeño financiero que será impartido por María Rey.
El documento define el liderazgo como el conjunto de habilidades que una persona tiene para influir en un grupo y lograr metas u objetivos. Explica que el poder es la base del líder y cómo se gana, y distingue el poder de la autoridad. Finalmente, destaca la importancia del liderazgo al señalar que ha sido indispensable para el progreso de las sociedades a lo largo de la historia.
Este documento presenta una introducción a los mapas conceptuales creados en Cmap Tools. La autora, Fanny Sofía, explica cómo utilizar este software para generar mapas conceptuales mientras estudia en el bachillerato Sabes el 4 de diciembre de 2013.
Blue Ocean Strategy (BOS) is a framework for creating new market space and making competition irrelevant. It is based on a decade of research on strategic moves spanning over 100 years. BOS aims to create blue oceans of uncontested market space rather than fighting in existing red oceans. It provides tools like the strategy canvas and four actions framework to help formulate strategies that eliminate, reduce, raise, and create factors compared to industry standards. The six principles of BOS guide successful formulation through reconstructing market boundaries and focusing on the big picture rather than numbers. Executing BOS involves overcoming organizational hurdles and building fair processes and tipping point leadership into the strategy.
The document discusses the concept of blue ocean strategy using Cirque du Soleil as an example. It provides an overview of key principles of blue ocean strategy, including reconstructing market boundaries to look across different industries and customer groups, focusing on the big picture rather than numbers, getting the strategic sequence right, and overcoming organizational hurdles to execute new strategies. The document also outlines analytical tools for developing blue ocean strategies, such as strategy canvases and value curves.
The document summarizes key concepts from the book "Blue Ocean Strategy" by W. Chan Kim and Renée Mauborgne. It discusses how companies can create new market space, or "blue oceans", by focusing on value innovation to increase value for customers and decrease costs. It outlines analytical tools like the strategy canvas and frameworks like eliminate-reduce-raise-create to help companies reconstruct market boundaries. Finally, it discusses how to visualize strategy and understand the different tiers of potential customers, including non-customers, to help actualize a viable blue ocean idea.
The document discusses red and blue oceans in business. Red oceans represent existing industries with defined competition, while blue oceans represent uncontested market space without competition. It advocates pursuing differentiation and low cost simultaneously through value innovation to create a blue ocean and make competition irrelevant. Strategies discussed include reducing unnecessary factors, eliminating redundancies, raising what is below standards, and creating new benefits customers value. Analyzing potential new customers, including those on the edge of exiting, refusing, and unexplored markets, is also recommended to open new blue oceans. Examples given of companies creating blue oceans include Ralph Lauren, Pfizer, and Cirque Du Soleil.
Between 1975 and 1995, 60% of Fortune 500 companies were replaced, showing that markets and competitors are constantly changing. Industries and companies continuously rise and fall, so there are no permanently dominant players. Strategic moves that continuously create new value for customers allow companies to stay at the top. Value innovation aims to substantially raise customer value rather than focus only on new technologies. By identifying and serving overall customer needs through an unparalleled value proposition, companies can dominate their market.
This document provides an overview of a Blue Ocean Strategy simulation developed by StratX. The simulation is designed to teach participants about Blue Ocean Strategy concepts developed by W. Chan Kim and Renée Mauborgne. In the simulation, participants manage a fictitious company competing in the game console industry over multiple decision rounds. The rounds progress from competing in existing red ocean markets to attempting to create blue oceans of uncontested market space through value innovation and other Blue Ocean Strategy tools and frameworks.
Using either Porter’s generic strategies or the Strategy Clock, identify examples of organisations following strategies of differentiation, low cost or low price, and stuck-in-the middle or hybrid. How successful are these strategies?
Porter's generic strategies include cost leadership, differentiation, and focus. Cost leadership involves having very low production costs to offer lower prices. Differentiation involves unique product attributes that are valued by customers. Focus involves targeting a narrow market segment and achieving either cost advantages or differentiation within that segment. While these strategies provide advantages against competitive forces, attempting multiple strategies risks being "stuck in the middle" without a clear advantage. Later critics argued generic strategies lack flexibility and specificity, and that there are viable strategies between the extremes.
Michael Porter is a professor at Harvard Business School.
A firm’s success in strategy rests upon how it positions itself in respect to its environment.
Blue Ocean strategy Outguns Red Ocean Strategy - AnshumaliiAnshumali Saxena
This document discusses blue ocean strategy and how it differs from traditional red ocean strategy. It provides examples of companies like Cirque du Soleil that achieved great success by creating new market space rather than competing head-to-head in existing markets. The key aspects of blue ocean strategy are value innovation, which involves raising buyer value and reducing costs, and reconstructing market boundaries to open up new demand. Visual tools like the strategy canvas are recommended to help companies map out blue ocean opportunities and shifts from their current "red ocean" approach. Reaching beyond existing demand by exploring non-customers is also an important part of blue ocean strategy.
The document discusses Michael Porter's generic strategies model which identifies three strategies for gaining competitive advantage - cost leadership, differentiation, and focus. It provides details and examples of each strategy. Cost leadership involves producing standardized products on a large scale at low cost. Differentiation focuses on making the product unique through features, quality, design or service. Focus involves targeting a narrow market segment and achieving either cost advantage or differentiation within that segment. The risks of each strategy are also outlined. The document then provides examples of Dell's successful implementation of virtual integration and targeting of customer segments to achieve cost leadership.
Michael Porter developed the 5 forces framework to analyze industry competition and inform business strategy. The 5 forces include the threat of new entrants, power of suppliers and customers, and threat of substitutes and industry rivals. Porter also described generic strategies of cost leadership, differentiation, and focus that companies can adopt based on 5 forces analysis. The document provides examples of each force and strategy to analyze competitive environments and guide strategic decision making.
Entrepreneur 4: Business Strategies & Rapid Growth StrategiesBernard Leong
The 4th lecture focus on business strategy and models, rapid growth strategies (franchising, mergers & acquisitions), and an introduction to Moore's "Crossing the Chasm", Gartner's Hype Cycle and Porter's 5 Forces.
The document discusses the concept of blue ocean strategy, which involves creating new market space by changing the boundaries of an existing industry. It outlines key principles such as reconstructing market boundaries, focusing on non-customers, and using a strategy canvas to visualize new opportunities. The strategy aims to make competition irrelevant by creating uncontested market space through eliminating or reducing some industry factors while introducing new ones.
Porter's generic strategies include cost leadership, differentiation, and focus. Cost leadership involves having very low production costs, differentiation focuses on making the product unique, and focus involves targeting a narrow customer segment. Firms must choose one strategy to avoid being "stuck in the middle". While generic strategies provide advantages against competitive forces, some critics argue they are too limiting and flexible approaches are also viable.
This is the first presentation of a two part webinar for Blue ocean strategy.
The presentation introduces to red ocean and blue ocean companies, How blue ocean strategy is a simultaneous pursuit of cost and value.
The presentation provides a quick introduction with new age examples to strategy canvas, 6 paths framework, four actions frame work, buyer utility map, 3 tiers of non customers and PMS maps.
The presentation also utilizes these frameworks in showcasing descriptive case studies of companies like netjets, indochino.com, Zynga and khan academy.
This presentation is aimed at explaining the greatness of Blue ocean strategy thinking to general audience and does not imply distortion of facts and frameworks of the original Authors: Chan Kim, Renee Mauborgne
The document summarizes Hyundai Motor Company's launch of its new Genesis model in 2007 to target the high-end car market. It discusses how Hyundai shifted from a strategy of cost leadership to one of differentiation. The company introduced the Genesis to move beyond being seen only as a provider of cheap, decent quality cars in the US market. The Genesis allowed Hyundai to compete in the premium car segment and diversify its strategy for global competitiveness.
The document discusses Porter's three generic strategies: cost leadership, differentiation, and focus. It provides details on each strategy, including the strengths companies need to successfully implement each one and risks involved. It gives examples of companies like McDonalds, Apple, Medimix, and PepsiCo that have used cost leadership, differentiation, or focus strategies.
Este documento proporciona información sobre las redes sociales y la ubicación en línea de CEDOL CÁMARA EMPRESARIA DE OPERADORES LOGÍSTICOS. Incluye sus páginas web, blog y perfiles en Facebook, LinkedIn y Google Maps. También describe brevemente un módulo sobre la conexión estratégica entre la cadena de suministro y el desempeño financiero que será impartido por María Rey.
El documento define el liderazgo como el conjunto de habilidades que una persona tiene para influir en un grupo y lograr metas u objetivos. Explica que el poder es la base del líder y cómo se gana, y distingue el poder de la autoridad. Finalmente, destaca la importancia del liderazgo al señalar que ha sido indispensable para el progreso de las sociedades a lo largo de la historia.
Este documento presenta una introducción a los mapas conceptuales creados en Cmap Tools. La autora, Fanny Sofía, explica cómo utilizar este software para generar mapas conceptuales mientras estudia en el bachillerato Sabes el 4 de diciembre de 2013.
FTI Consulting provides services across various industries and has over 4,600 employees located around the world. They have experts in different fields that can provide critical thinking on complex business issues. It is important to understand the landscape of an issue in order to develop an effective strategy by listening first, considering issue-based approaches, and manually analyzing available information to identify influencers and drivers.
Laboratory investigation of dengue in Jeddahhosammadani
The document discusses laboratory diagnosis of dengue hemorrhagic fever. It describes dengue virus characteristics and various diagnostic techniques used including virus isolation, serological tests like ELISA and hemagglutination inhibition, and molecular detection of dengue virus RNA through reverse transcription PCR. It provides details of specific diagnostic tests and procedures used at the Jeddah Regional Laboratory.
Planificacion de educacion de la sexualidadzoila nagua
Este documento presenta el esquema de planificación de acciones para la educación de la sexualidad integral en la Escuela Fiscal Mixta "Nicolás Aguilera" durante el año lectivo 2010-2011. El objetivo general es motivar e integrar a la comunidad educativa para institucionalizar la educación de la sexualidad mediante la inserción en las asignaturas y proyectos educativos, con el fin de prevenir el abuso sexual, enfermedades de transmisión sexual y embarazos prematuros entre los estudiantes. El esquema detalla 7 objet
World War II began when Germany invaded Poland in 1939. This caused France and Britain to declare war on Germany. Germany then conquered much of Western Europe. In 1941, Germany broke its non-aggression pact with the Soviet Union by invading. The US entered the war after Japan's attack on Pearl Harbor. Over the next several years, the Allied powers including the US, Britain, and Soviet Union fought against Germany and Japan. Germany surrendered in 1945 after the US dropped atomic bombs on Japan, bringing World War II to an end after over 7 years of global conflict.
1. New York City began as New Amsterdam, founded by the Dutch in 1624 as a trading post for furs. It was later captured by the English and renamed New York.
2. In the early 20th century, New York saw tremendous growth and became a global economic center, but the Great Depression devastated the city, with 1/3 of residents losing their jobs.
3. Mayor Fiorello La Guardia and Robert Moses worked to rebuild the city through new parks, schools and infrastructure, though their policies exacerbated racial tensions and inequality.
What's new in SharePoint 2016 for IT Professionals Webinar with CrowCanyonVlad Catrinescu
Start the New Year off right! Join Vlad Catrinescu, Microsoft MVP and president of vNext Solutions, as he helps you prepare for the coming release of SharePoint 2016. This latest version of SharePoint comes with a plethora of new features and promises greater stability and true hybrid readiness. As an IT Professional, you need to know what SharePoint 2016 has in it and how it will impact your SharePoint implementation.
In this webinar, Vlad will show you the new features and changes in 2016, covering such topic as:
• Depreciated Features
• New Topologies with MinRole
• User Profile + Microsoft Identity Manager / AD Import
• Cloud Search Service Application
• Zero Downtime Patching
• Upgrading to SharePoint 2016
Case studies from european Divante projects. e-Commerce: from design to Magento implementation. Conversion optimization and eMarketing. Clients includes: Intersport, Praktiker, TUI and others.
El documento define el sintagma nominal como un conjunto de palabras organizadas en torno a un sustantivo que funciona como núcleo. Explica que todas las palabras en el sintagma se refieren a la misma realidad designada por el sustantivo. Normalmente, un sintagma nominal puede sustituirse por un pronombre. Además, describe la estructura típica de un sintagma nominal, la cual incluye un determinante, un núcleo y posibles modificadores adyacentes.
The document discusses the key concepts of blue ocean strategy, which involves creating new market space and making competition irrelevant by focusing on value innovation. It provides an overview of the 6 principles of blue ocean strategy, which are reconstructing market boundaries, focusing on the big picture rather than numbers, reaching beyond existing demand, getting the strategic sequence right, overcoming organizational hurdles, and building execution into strategy. Finally, it discusses various frameworks like the strategy canvas that can be used to analyze a company's strategy and identify opportunities to create new blue oceans.
Red ocean strategy involves competing in existing market space against competitors, while blue ocean strategy creates new market space without competition. Key tools for blue ocean strategy include the strategy canvas, which visually captures current and future strategic positioning; the 4 Actions framework for reconstructing buyer value; and the ERRC grid for eliminating/reducing and raising/creating factors. Fair process builds execution into strategy through engagement, explanation, and clarity of expectations.
Value innovation creates favorable impacts on both cost structure and value proposition to buyers. It reduces costs by eliminating unnecessary industry factors and lifts buyer value by creating new elements the industry has never offered before. Over time, costs are reduced further through scale economies generated by superior value. Red ocean strategy competes in existing market space while blue ocean strategy creates uncontested market space to make competition irrelevant. The six principles of blue ocean strategy are reconstructing market boundaries, focusing on the big picture, reaching beyond existing demand, getting the strategic sequence right, overcoming organizational hurdles, and building execution into strategy.
Strategy Development
Week 3
Objectives Week 3Develop strategic objectives.
Create organizational objectives and goals.
Articulate value proposition, key activities, resources, and channels to market.
Quote……
“Successful business strategy is about actively shaping the game you play, not just playing the game you find.”
Adam M. Brandenburger and Barry J. Nalebuff
Quote……
“The essence of strategy lies in creating tomorrow’s competitive advantage faster than competitors mimic the ones you posses today”
Gary Hamel and C.K. Prahalad
Quote……
“Competitive strategy is about being different. It means deliberately choosing to perform activities differently or to perform different activities than rivals to deliver a unique mix of value”.
—Michael E. Porter
Quote……
“Winners in business play rough and don’t apologize for it. The nicest part of playing hardball is watching your competitors squirm”
—George Stalk, Jr., and Rob Lachenauer”
Long-Term ObjectivesStrategic managers recognize that short-run profit maximization is rarely the best approach to achieving sustained corporate growth and profitability.Strategic decision makers confronts:
Should they eat the seeds to improve the near-term profit picture and make large dividend payments through cost-saving measures such as laying off workers during periods of slack demand, selling off inventories, or cutting back on research and development?
Or should they sow the seeds in the effort to reap long-term rewards by reinvesting profits in growth opportunities, committing resources to employee training, or increasing advertising expenditures?
Long-Term ObjectivesTo achieve long-term prosperity, strategic planners commonly establish long-term objectives in seven areas: Profitability Competitive PositionEmployee RelationsTechnological Leadership Productivity – In-OutEmployee DevelopmentPublic Responsibility
Qualities of Long-Term ObjectivesWhat distinguishes a good objective from a bad one? What qualities of an objective improve its chances of being attained?There are five criteria that should be used in preparing long-term objectives:
Flexible
Measurable
Motivating
Suitable
Understandable
The Balanced ScorecardThe balanced scorecard is a set of measures that are directly linked to the company’s strategy
Developed by Robert S. Kaplan and David P. Norton, it directs a company to link its own long-term strategy with tangible goals and actions.
The scorecard allows managers to evaluate the company from four perspectives:
financial performance
customer knowledge
internal business processes
learning and growth
The Balance Scorecard
The Balance Scorecard
The Balance ScorecardPerspectiveObjectiveKPIGoal for 2014FinanceBecome industry Cost Leader% Reduction in Cost per Unit20%Utilization of AssetsUtilization Rate7%Increase Market ShareMarket Share30%CustomerCustomer Retention% Retention 75%On Time Delivery% of On Time Delivery90%Zero Defects% of Good Quality.
The document provides an overview of blue ocean strategy, including definitions of red ocean and blue ocean strategies, why companies get trapped in red oceans, the importance of value innovation, how to analyze a value curve using a strategy canvas, the six principles and four-action framework for creating a blue ocean strategy, overcoming organizational hurdles to execution, building a robust business model, and the life cycle of a blue ocean strategy.
This document discusses key concepts from blue ocean strategy, including:
- Red oceans represent existing market space where companies compete by taking value from competitors, while blue oceans create uncontested market space with new value.
- Six principles of blue ocean strategy help lower risks in formulation and execution, including focusing on the big picture rather than numbers.
- The strategy canvas tool is used to analyze where competitors invest and what customers receive to find new opportunities.
- Reconstructing market boundaries across the six paths can help conceive new market space beyond existing demand and industry assumptions.
The document summarizes key concepts from Blue Ocean Strategy. It discusses value innovation as creating value for both the company and buyers by eliminating or reducing competition factors and raising or creating new elements. It contrasts red ocean strategy of competing within existing industry boundaries versus blue ocean strategy of creating new market space without competition. The six principles of blue ocean strategy aim to reconstruct market boundaries, reach beyond existing demand, and overcome organizational hurdles to strategy execution. Tools like the strategy canvas, four actions framework, and profit model are presented to help visualize and implement blue ocean strategies.
Blue Ocean Strategy involves creating new market space and making competition irrelevant by focusing on value innovation. It involves reconstructing market boundaries and industry assumptions to create demand in uncontested market spaces. The key aspects of Blue Ocean Strategy are creating exceptional buyer utility, setting a strategic price accessible to mass buyers, achieving the target cost structure, and addressing adoption hurdles upfront to develop a commercially viable idea.
The document discusses different business-level strategies including cost leadership strategy, differentiation strategy, focused strategies, and integrated cost leadership/differentiation strategy. It explains that core competencies provide competitive advantage and strategies must exploit these to satisfy customer needs. Cost leadership is achieved through low cost production while differentiation provides unique value. The strategies can be used to address threats from competition and suppliers/buyers.
The document discusses the concepts of blue ocean strategy from the book by W. Chan Kim and Renee Mauborgne. It provides details on:
1. The difference between red ocean and blue ocean strategies, where red oceans refer to competing in existing markets and blue oceans create new market space.
2. The core principles of blue ocean strategy including reconstructing market boundaries, reaching beyond existing demand, and getting the strategic sequence right by focusing on value innovation first.
3. An example of a double degree MBA-JD program between De La Salle University and Far Eastern University that created a new blue ocean by eliminating unnecessary subjects and reducing time/costs to complete both degrees.
This document summarizes key concepts from Blue Ocean Strategy by W. Chan Kim and Renee Mauborgne. It discusses how blue ocean strategy aims to create uncontested market space and make competition irrelevant by breaking the value-cost tradeoff. Key frameworks covered include the strategy canvas, four actions framework, buyer utility map, and sequence for validating blue ocean ideas. Overall, the document provides an overview of blue ocean strategy and the tools used to identify and capture new demand in unexplored market spaces.
The document summarizes key concepts from the book Blue Ocean Strategy. It discusses how blue ocean strategy involves creating uncontested market space by making competition irrelevant. It outlines how blue ocean logic differs from conventional logic by thinking freely from a company's existing assets and capabilities. The document also provides examples of value curves and strategy canvases that illustrate how blue ocean strategy works to create a new demand curve by eliminating, reducing, raising, and creating new factors.
- The document discusses red ocean and blue ocean strategies, with blue ocean strategy focusing on creating new market space by reconstructing market boundaries rather than competing head-to-head. It provides Meru Cabs and Himalaya as examples of Indian companies that achieved success through blue ocean strategy by addressing unmet needs in new ways. Key principles of blue ocean strategy include reconstructing market boundaries, reaching beyond existing demand, and getting the strategic sequence right by focusing on value innovation first.
The document discusses key concepts from Blue Ocean Strategy, including:
1. Value innovation is created by favorably affecting both cost structure and value proposition to buyers. Costs are reduced by eliminating competition factors while buyer value is increased by offering new elements.
2. Blue ocean strategy aims to create new market space by breaking the value-cost tradeoff, while red ocean strategy involves competing in existing market space on factors like cost or differentiation.
3. Tools for developing blue ocean strategy include the strategy canvas, four actions framework, buyer utility map, and analyzing the buyer experience cycle. The strategic sequence and evaluating ideas on utility, price, cost and adoption are also discussed.
The document summarizes several key concepts from Blue Ocean Strategy:
1. Value innovation is created by favorably affecting both cost structure and value proposition to buyers by eliminating/reducing competition factors and raising/creating new elements.
2. Blue ocean strategy aims to create new market space by breaking the value-cost tradeoff, while red ocean strategy pursues differentiation or low cost within existing industry boundaries.
3. Tools like the strategy canvas, four actions framework, and buyer utility map help analyze industries and identify factors to eliminate, reduce, raise or create for blue ocean opportunities.
The document summarizes several key concepts from Blue Ocean Strategy:
1. Value innovation is created by favorably affecting both cost structure and value proposition to buyers by eliminating/reducing competition factors and raising/creating new elements.
2. Blue ocean strategy aims to create new market space by breaking the value-cost tradeoff, while red ocean strategy pursues differentiation or low cost within existing industry boundaries.
3. Tools like the strategy canvas, four actions framework, and buyer utility map help analyze industries and formulate blue ocean strategies.
The document discusses key concepts from Blue Ocean Strategy, including:
1. Value innovation is created by favorably affecting both cost structure and value proposition to buyers. Costs are reduced by eliminating competition factors while buyer value is increased by offering new elements.
2. Blue ocean strategy aims to create new market space by breaking the value-cost tradeoff, while red ocean strategy involves competing in existing market space on factors like cost or differentiation.
3. Tools for developing blue ocean strategy include the strategy canvas, four actions framework, buyer utility map, and analyzing the buyer experience cycle. The strategic sequence and evaluating ideas on utility, price, cost and adoption are also discussed.
The document discusses key concepts from Blue Ocean Strategy, including:
1. Value innovation is created by favorably affecting both cost structure and value proposition to buyers. Costs are reduced by eliminating competition factors while buyer value is increased by offering new elements.
2. Blue ocean strategy aims to create new market space by breaking the value-cost tradeoff, while red ocean strategy involves competing in existing market space on factors like cost or differentiation.
3. Tools for developing blue ocean strategy include the strategy canvas, four actions framework, buyer utility map, and analyzing the buyer experience cycle. The strategic sequence and evaluating ideas on utility, price, cost and adoption are also discussed.
The document discusses the concept of Blue Ocean Strategy, which involves creating new market space and making competition irrelevant by reconstructing market boundaries to focus on underserved customers. It outlines tools for Blue Ocean Strategy including the strategy canvas and four action framework of eliminate, reduce, raise and create. It also discusses six principles for formulating and executing Blue Ocean Strategy, such as overcoming organizational hurdles and building execution into the strategy.
The document discusses the concept of Blue Ocean Strategy, which involves creating new market space and making competition irrelevant by reconstructing market boundaries to focus on underserved customers. It outlines tools for Blue Ocean Strategy including the strategy canvas and four action framework of eliminate, reduce, raise and create. It also discusses six principles for formulating and executing Blue Ocean Strategy, such as overcoming organizational hurdles and building execution into the strategy.
Iklan UNHATE dari Benetton menuai kontroversi karena dianggap memanfaatkan isu sosial untuk promosi dan menyinggung perasaan beragama. Walaupun bertujuan meningkatkan kesadaran akan perdamaian, iklan ini dinilai kurang mempertimbangkan konteks budaya dan sejarah negara sasaran sehingga ditolak di beberapa negara. Dampaknya berupa penurunan penjualan dan saham Benetton serta rusaknya citra merek, me
Dokumen tersebut memberikan perhitungan ROI (return on investment) dari usaha waralaba Arumanis Rainbow dengan asumsi 4 outlet, penjualan rata-rata 120 tube per hari per outlet sehingga total penjualan bulanan 3600 tube. Margin per tube Rp6000 dengan total margin bulanan Rp21,6 juta, biaya tenaga kerja Rp1,5 juta/bulan, sewa Rp6 juta/bulan, dan biaya lain Rp1 juta/bulan sehingga laba bersih Rp13,1 juta
Rangkuman dokumen tersebut adalah: (1) dokumen tersebut membahas tentang rencana pemasaran dan strategi pemasaran yang efektif untuk bisnis, (2) rencana pemasaran merupakan strategi jangka panjang yang mencakup analisis pasar, sasaran, strategi, anggaran, dan kontrol, (3) unsur-unsur penting rencana pemasaran antara lain adalah ringkasan eksekutif, analisis situasi, tujuan, dan program aksi.
Tiga kalimat ringkasan dokumen tersebut adalah:
Doa di Raudhah, Masjid Nabawi memuji Allah atas karunia berziarah ke tempat suci ini dan mengagungkan Rasulullah beserta keluarga dan keturunannya.
Michael Porter developed the Five Forces framework to analyze industry attractiveness and profitability. The five competitive forces are the threat of new entry, bargaining power of suppliers, bargaining power of buyers, threat of substitute products, and rivalry among existing competitors. Porter's framework identifies structural factors that determine the intensity of competition in an industry and profitability. These include barriers to entry, power of suppliers and buyers, threat of substitutes, and intensity of rivalry.
Dokumen tersebut membahas tentang peningkatan peluang keberhasilan franchisee. Terdapat beberapa hal penting yang perlu dipersiapkan franchisee sebelum dan sesudah menandatangani kontrak, seperti mempelajari informasi mengenai bisnis waralaba, melakukan persiapan, serta menjalin hubungan yang harmonis dengan franchisor. Kontrak yang jelas dan penyelesaian konflik yang tepat dapat meminimalkan risiko kegagalan bisnis waralaba.
Paradigma baru utilisasi teknologi informasi harus mengedepankan visi dan misi manusia sebagai pengelola cerdas, visi kesejahteraan umat, dan visi enterprise untuk mengelola proses bisnis guna kemanfaatan maksimal bagi lingkungan global yang bermartabat. Pelayanan prima dengan dinamika kultur menjadi peluang dan tantangan pendayagunaan TI di masa depan.
हिंदी वर्णमाला पीपीटी, hindi alphabet PPT presentation, hindi varnamala PPT, Hindi Varnamala pdf, हिंदी स्वर, हिंदी व्यंजन, sikhiye hindi varnmala, dr. mulla adam ali, hindi language and literature, hindi alphabet with drawing, hindi alphabet pdf, hindi varnamala for childrens, hindi language, hindi varnamala practice for kids, https://www.drmullaadamali.com
it describes the bony anatomy including the femoral head , acetabulum, labrum . also discusses the capsule , ligaments . muscle that act on the hip joint and the range of motion are outlined. factors affecting hip joint stability and weight transmission through the joint are summarized.
The simplified electron and muon model, Oscillating Spacetime: The Foundation...RitikBhardwaj56
Discover the Simplified Electron and Muon Model: A New Wave-Based Approach to Understanding Particles delves into a groundbreaking theory that presents electrons and muons as rotating soliton waves within oscillating spacetime. Geared towards students, researchers, and science buffs, this book breaks down complex ideas into simple explanations. It covers topics such as electron waves, temporal dynamics, and the implications of this model on particle physics. With clear illustrations and easy-to-follow explanations, readers will gain a new outlook on the universe's fundamental nature.
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
Certified as an ISO/IEC 27001: Information Security Management Systems (ISMS) Lead Implementer, Data Protection Officer, and Cyber Risks Analyst, Denis brings a heightened focus on data security, privacy, and cyber resilience to every endeavor.
His expertise extends across a diverse spectrum of reporting, database, and web development applications, underpinned by an exceptional grasp of data storage and virtualization technologies. His proficiency in application testing, database administration, and data cleansing ensures seamless execution of complex projects.
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Throughout his career, he has taken on multifaceted roles, from leading technical project management teams to owning solutions that drive operational excellence. His conscientious and proactive approach is unwavering, whether he is working independently or collaboratively within a team. His ability to connect with colleagues on a personal level underscores his commitment to fostering a harmonious and productive workplace environment.
Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
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Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
How to Build a Module in Odoo 17 Using the Scaffold MethodCeline George
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How to Fix the Import Error in the Odoo 17Celine George
An import error occurs when a program fails to import a module or library, disrupting its execution. In languages like Python, this issue arises when the specified module cannot be found or accessed, hindering the program's functionality. Resolving import errors is crucial for maintaining smooth software operation and uninterrupted development processes.
Strategies for Effective Upskilling is a presentation by Chinwendu Peace in a Your Skill Boost Masterclass organisation by the Excellence Foundation for South Sudan on 08th and 09th June 2024 from 1 PM to 3 PM on each day.
Physiology and chemistry of skin and pigmentation, hairs, scalp, lips and nail, Cleansing cream, Lotions, Face powders, Face packs, Lipsticks, Bath products, soaps and baby product,
Preparation and standardization of the following : Tonic, Bleaches, Dentifrices and Mouth washes & Tooth Pastes, Cosmetics for Nails.
Executive Directors Chat Leveraging AI for Diversity, Equity, and InclusionTechSoup
Let’s explore the intersection of technology and equity in the final session of our DEI series. Discover how AI tools, like ChatGPT, can be used to support and enhance your nonprofit's DEI initiatives. Participants will gain insights into practical AI applications and get tips for leveraging technology to advance their DEI goals.
This presentation was provided by Steph Pollock of The American Psychological Association’s Journals Program, and Damita Snow, of The American Society of Civil Engineers (ASCE), for the initial session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session One: 'Setting Expectations: a DEIA Primer,' was held June 6, 2024.
Pollock and Snow "DEIA in the Scholarly Landscape, Session One: Setting Expec...
Blue Ocean Strategy Unpam-350
1. by
Prof. W. Chan Kim, Prof. Renee Mauborgne
Edited by;
R. Benny Wahyuadi, M.M., MBA.
Hersanto, S. Kom., M.Kom.
2. Value Innovation
Value Innovation is created in the region where a company’s actions favorably
affect both its cost structure and its value proposition to buyers. Cost savings
are made by eliminating and reducing the factors an industry competes on.
Buyer value is lifted by raising and creating elements the industry has never
offered. Over time, costs are reduced further as scale economies kick in due to
Costs
the high sales volumes that superior value generates.
We call it value innovation because instead of focusing on beating the
competition, you focus on making the competition irrelevant by creating a leap in
value for buyers and your company, thereby opening up new and uncontested
Value
market space.
Innovation
Value innovation places equal emphasis on value and innovation.
Value innovation occurs when companies align innovation with utility, price, and
cost positions.
Importantly, value innovation defies one of the most commonly accepted dogmas Buyer Value
of competition-based strategy: the value-cost trade-off. Those that seek to
create blue oceans pursue differentiation and low cost simultaneously.
In the figure, the creation of blue oceans is about driving costs down while
simultaneously driving value up for buyers. This is how a leap in value for both
the company and its buyers is achieved. Because buyer value comes from utility
and price that the company offers to buyers and because the value to the
company is generated from price and its cost structure, value innovation is
achieved only when the whole system of the company’s utility, price, and cost
activities is properly aligned.
Value innovation is more than innovation. It’s about strategy that embraces the
entire system of a company’s activities. Value innovation requires companies to
orient the whole system towards achieving a leap in value for both buyers and
themselves.
4. Red Ocean Versus Blue Ocean
Strategy
Red Ocean Strategy Blue Ocean Strategy
Compete in existing market space. Create uncontested market space.
Beat the competition Make the competition irrelevant.
Exploit existing demand Create and capture new demand.
Make the value-cost trade-off. Break the value-costs trade-off.
Align the whole system of a firm’s activities Align the whole system of a firm’s
with its strategic choice of differentiation or activities in pursuit of differentiation and
low costs low costs.
Competition-based red ocean strategy assumes that an Value innovation is based on the view that market
industry’s structural conditions are given and that firms boundaries and industry structure are not given
are forced to compete within them, an assumption based and can be reconstructed by the actions and
on what the academics call the structuralist view, or beliefs of industry players. We call this
environmental determinism. reconstructionist view.
In the red ocean, differentiation costs because firms In the reconstructionist world, the strategic aim is
compete with the same best-principle rule. Here, the to create new best-practice rules by breaking the
strategic choices for firms are to pursue either existing value-cost trade-off and thereby creating a
differentiation or low cost. blue ocean.
5. The Six Principles of Blue Ocean
Strategy
Formulation principles Risk factor each principle attenuates
Reconstruct market boundaries ↓ Search risk
Focus on the big picture, not the numbers ↓ Planning Risk
Reach beyond existing demand ↓ Scale Risk
Get the strategic sequence right ↓ Business model risk
Execution principles Risk factor each principle attenuates
Overcome key organizational hurdles ↓ Organizational risk
Build execution into strategy ↓ Management risk
6. The Strategy Canvas (example)
High
Premium Wines
[yellow tail]
Budget Wines
Low
Price Use of enological
terminology and Above-the- Aging quality Vineyard prestige Wine Wine Easy Ease of Fun and
distinction in wine line marketing
communication
and legacy complexity range drinking selection adventure
The strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. It serves
two purposes. First it captures the current state of play in the known market space. This allows you to understand where
the competition is currently investing, the factors the industry currently competes on in products, service, and delivery, and
what customers receive from the existing competitive offerings on the market.
The horizontal axis captures the range of factors the industry competes on and invest in.
The vertical axis of the strategy canvas, which captures the offering level that buyers receive across all these key
competing factors. A high score means that a company offers buyers more, and hence invest more, in that factor. In the
case of price, a higher score indicates a higher price.
A value curve, the basic component of the strategy canvas, is a graphic depiction of a company’s relative performance
across its industry’s factors of competition.
To fundamentally shift the strategy canvas of an industry, you must begin by reorienting your strategic focus from
competitors to alternatives, and from customers to noncustomers of the industry. To pursue both value and costs, you
should resist the old logic of benchmarking competitors in the existing field and choosing between differentiation and cost
leadership. As you shift your strategic focus from current competition to alternatives and noncustomers, you gain insight
into how to redefine the problem the industry focuses on and thereby reconstruct buyer value elements that reside across
industry boundaries.
7. Reading the Value Curves Reconstruct Market Boundaries – The First Principle of The Blue Ocean Strategy
The strategy canvas enables companies to see the future in the The six paths framework
present.
From Head-to-Head Competition to Blue Ocean Creation
A Blue Ocean Strategy Head-to-Head Competition Blue Ocean Creation
The first question the value curves answers is whether a
business deserves to be a winner. When a company’s value Industry Focuses on rivals within its industry Looks across alternative
curve, or its competitors’, meet the three criteria that define a industries
good blue ocean strategy – focus, divergence, and a
compelling tagline that speaks to the market – the company is Strategic group Focuses on competitive position within Looks across strategic
on the right track. strategic group groups within industry
A Company Caught in the Red Ocean Buyer group Focuses on better serving the Redefines the industry
When a company’s value curve converges with its competitors, buyer group buyer group
it signals that a company is likely caught within the red ocean of
bloody competition. Scope of product or Focuses on maximizing the value of Looks across to
service offering product and services offerings complimentary product
Overdelivery Without Payback within the bounds of its industry and service offerings
When a company’s value curve on the strategy canvas is
shown to deliver high levels across all factors, the question is, Functional- Focuses on improving price Rethinks the functional-
Does the company’s market share and profitability reflect these emotional performance within the emotional orientation of its
investments? To value-innovate, the company must decide orientation functional-emotional orientation industry
which factors to eliminate and reduce – and not only those to of its industry
raise and create – to construct a divergent value curve. Focuses on adapting to external Participates in shaping
Time trends as they occur external trends over time
An Incoherent Strategy
When a company’s value curve looks like a bowl of spaghetti –
a zigzag with no rhyme or reason, where the offering can be
described as “low-high-low-low-high-low-high” – it signals that
the company doesn’t have a coherent strategy. To break out of red oceans, companies must break out of the accepted
boundaries that define how they compete. Instead of looking within these
Strategic Contradictions boundaries, managers need to look systematically across them to create blue
These are areas where a company is offering a high level on oceans. They need to look across alternative industries, across strategic
one competing factor while ignoring others that support that
factor.
groups, across buyer groups, across complementary product and service
offerings, across the functional-emotional orientation of an industry, and even
An Internally Driven Company across time. This gives companies keen insight into how to reconstruct
The kind of language used in the strategic canvas gives insight market realities to open up blue oceans.
as to whether a company’s strategic vision is built on an
“outside-in” perspective , driven by the demand side, or an
“inside-out” perspective that is operationally driven. Analyzing
the language of the strategy canvas helps a company
understand how far it is from creating industry demand.
9. The Four Actions Framework
• The first question forces you to consider eliminating factors that
Reduce companies in your industry have long competed on.
Which factors should be
reduced well below the
•The second question forces you to determine whether products or
industry’s standard? services have been overdesigned in the race to match and beat the
competition.
•The third question pushes you to uncover and eliminate the
compromises your industry forces customer to make.
Eliminate
Create •The forth question helps you to discover entirely new sources of
Which of the factors that A New Which factors should be
the industry takes for Value created that the industry
value for buyers and to create new demand and shift the strategic
granted should be pricing of the industry.
eliminated?
Curve has never offered?
•It is by pursuing the first two questions (of eliminating and reducing)
that you gain insight into how to drop your cost structure vis-à-vis
competitors.
•The second two factors, by contrast, provide you with insight into
Raise how to lift buyer value and create new demand.
Which factors should be
raised well above the •Eliminating and creating prompt companies to change the factors
industry’s standard?
themselves, hence making the existing rules of competition
irrelevant.
Eliminate-Reduce-Raise-Create Grid:
The grid pushes companies not only to ask all four questions in the four
Eliminate Raise actions framework but also to act on all four to create a new value
curve.
•It pushes them to simultaneously pursue differentiation and low costs
to break the value-cost trade-off.
•It immediately flags companies that are focused only on raising and
creating and thereby lifting their costs structure and often
overengineering products and services – a common plight in many
companies.
•It is easily understood by managers at any level, creating a high level
Reduce Create of engagement in its application.
•Because completing the grid is a challenging task, it drives companies
to robustly scrutinize every factor the industry competes on, making
them discover the range of implicit assumptions they make
unconsciously in competing
10. Reduce
Eliminate Create
A New
Value
Curve
Raise
Eliminate Raise
Reduce Create
11. The Four Steps of Visualizing Strategy
1. Visual Awakening 2. Visual Exploration 3. Visual Strategy Fair 4. Visual
Communications
• Compare your • Go into the field to • Draw your “to be” • Distribute your
business with your explore the six paths to strategy canvas bases before-and-after
competitors’ by creating blue oceans. on insights from field strategic profiles on
drawing your “as is” observations. one page for easy
• Observe the distinct comparison.
strategy canvas.
advantages of • Get feedback on
• See where your alternative products and alternative strategy • Support only those
strategy needs to services. canvas from projects and
change. customers, operational moves
• See which factors you
competitors’ that allow your
should eliminate, create, company to close
customers, and
or change. the gaps to
noncustomers.
actualize the new
• Use Feedback to build strategy.
the best “to be” future
strategy.
•Asking executives to draw the •Send a team into the field, putting •Teams present their strategy •Communicate the future
value curve of their company’s managers face-to-face with what they canvases at what we call a visual strategy in a way that can be
strategy brings home the need for must make sense of: how people use strategy fair. easily understood by any
change. It serves as a forceful or don’t use their products or services. employee.
wake-up call for companies to •A company should never outsource
challenge their existing strategies. its eyes. There is simply no substitute
for seeing for yourself.
12. The Four Steps of Visualizing Strategy
1. Visual Awakening 2. Visual Exploration 3. Visual Strategy Fair 4. Visual
Communications
13. Pioneer-Migrator-Settler (PMS) Map
Pioneers
Migrators
Settlers
Today Tomorrow
Pioneers: PMS Map:
•A company’s pioneers are the businesses that offer unprecedented value. These are the blue •For the purpose of the exercise, settlers are defined as me-too businesses, migrators are
ocean strategists, and they are the most powerful source of profitable growth. businesses offering better than most in the marketplace, and pioneers are the only ones with a
mass following of customers.
•Their value curve diverges from the competition on the strategy canvas.
•If both the current portfolio and the planned offerings consist mainly of settlers, the company has
Settlers:
a low growth trajectory, is largely confined to red oceans, and needs to push for value innovation.
•Businesses whose value curves conform to the basic shape of the industry.
•If current and planned offerings consist of a lot of migrators, reasonable growth can be expected.
•These are me-too businesses. But the company is not exploiting its potential for growth, and it risks being marginalized by a
company that value-innovates.
•They are stuck within red oceans.
•This exercise is especially valuable for managers who want to see beyond today’s performance.
Migrators:
•Value and innovation should be used as the important parameters for managing their portfolio of
•Such businesses extend the industry’s curve by giving customers more for less, but they don’t
business. They should use innovation because, with out it, companies are stuck in the trap of
alter its basic shape.
competitive improvements. They should use value because innovative ideas will be profitable only
•These businesses offer improved value, but not innovative value. if they are linked to what buyers are willing to pay for.
•These are businesses whose strategies fall on the margin between red oceans and blue oceans.
15. The Three Tiers of Noncustomers
First Tier: “Soon-to-be” noncustomers who
are on the edge of your market, waiting to
jump ship.
Second Tier: “Refusing” noncustomers who
consciously choose against your market.
Third Tier: “Unexplored” noncustomers who
are in markets distant from yours.
Your First
Second Third
Market Tier Tier Tier
First Tier Noncustomers: Second Tier Noncustomers: Third Tier Noncustomers:
•Noncustomers tend to offer far •Noncustomers can shed insight •Noncustomers have not been
more insight into how to unlock into the implicit assumptions of the targeted or thought of as potential
and grow a blue ocean than do industry and its existing customers customers by any player in the
relatively content existing that could be challenged and industry. That’s because their
customers. rewritten to create a leap in value needs and the business
for all. opportunities associated with them
•Look for commonalities across
have somehow always been
their responses. Focus on these,
assumed to belong to other
and not on the differences
markets.
between them.
17. The Sequence of Blue Ocean Strategy
Buyer utility Buyer Utility:
•Does your offering unlock exceptional utility? Is there a compelling
Is there exceptional buyer utility in
reason for the mass of people to buy it?.
your business idea?
No-Rethink
Yes Price:
•Is your offering priced to attract the mass of target buyers so that they
Price have a compelling ability to pay for your offering?
Is your price easily accessible to the
mass of buyers? Buyer utility and price ensure that you create a leap in net buyer value,
No-Rethink where net buyer value equals the utility buyers receive minus the price
they pay for it.
Yes
Cost:
Cost
•Can you produce your offering at the target cost and still earn a
healthy profit margin? Can you profit at the strategic price-the price
Can you attain your cost target to
easily accessible to the mass of target buyers.
profit at your strategic price? No-Rethink
The cost side of a company’s business model ensures that it creates a
leap in value for itself in the form of profit-that is, the price of the
Yes offering minus the cost of production. It is the combination of
exceptional utility, strategic pricing, and target costing that allows
companies to achieve value innovation-a leap in value for both buyers
Adoption and companies.
What are the adoption hurdles in
actualizing your business idea?
Adoption Hurdles:
Are you addressing them up front? No-Rethink
•What are the adoption hurdles in rolling out your idea? Have you
addressed these upfront.
Yes
The formulation of blue ocean strategy is complete only when you can
address adoption hurdles in the beginning to ensure the successful
A Commercially Viable actualization of your idea.
Blue Ocean Idea Adoption hurdles include, for example, potential resistance to the idea
by retailers or partners.
18. Buyer utility
Yes
Price
No-Rethink
Yes
Cost
No-Rethink
Yes
Adoption
No-Rethink
Yes
A Commercially Viable
Blue Ocean Idea
19. The Buyer Utility Map
The Six Stages of the Buyer Experience Cycle
1. Purchase 2. Delivery 3. Use 4. Supplements 5. Maintenance 6. Disposal
Customer
productivity
Simplicity
The Six Utility Levers
Convenience
Risk
Fun and
image
Environmental
friendliness
•The buyer utility map helps managers look at this issue •By locating your proposed offering on the thirty-six spaces of the
from the right perspective. It outlines all the levers buyers utility map, you can clearly see how, and whether, the new
companies can pull to deliver exceptional utility to buyers idea not only creates a different utility proposition from existing
as well as the various experiences buyers can have with offerings but also removes the biggest blocks to utility that stand in
a product or service. This map allows managers to the way of converting noncustomers into customers. If your offering
identify the full range of utility spaces that a product or falls on the same space or spaces as those of other players, chances
service can potentially fill. are it is not a blue ocean offering.
20. The Buyer Utility Map
The Six Stages of the Buyer Experience Cycle
1. Purchase 2. Delivery 3. Use 4. Supplements 5. Maintenance 6. Disposal
Customer
productivity
Simplicity
The Six Utility Levers
Convenience
Risk
Fun and
image
Environmental
friendliness
21. The Buyers Experience Cycle
Purchase Delivery Use Supplements Maintenance Disposal
How long does it take to How long does it take to Does the product require Do you need other Does the product require Does use of the product
find the product you get the product training or expert products and services to external maintenance? create waste items?
need? delivered? assistance? make this product work?
How easy is it to How easy is it to dispose
Is the place of purchase How difficult is it to Is the product easy to If so, how costly are maintain and upgrade of the product?
attractive and unpack and install the store when not in use? they? the product?
Are there legal or
accessible? new product?
How effective are the How much time do they How costly is environmental issues in
How secure is the Do buyers have to product’s features and take? maintenance? disposing of the product
transaction arrange delivery functions? safely?
How much pain do they
environment? themselves? If yes, how
Does the product or cause? How costly is disposal?
costly and difficult is
How rapidly can you service deliver far more
this? How easy are they
make a purchase? power or options than
obtained?
required by the average
user? Is it overcharged
with bells and whistles?
23. Uncovering the Blocks to Buyers Utility
Purchase Delivery Use Supplements Maintenance Dispose
Customer Productivity: In which stage are the biggest blocks to customer productivity?
Simplicity: In which stage are the biggest blocks to simplicity?
Convenience: In which stage are the biggest blocks to convenience?
Risk: In which stage are the biggest blocks to reducing risks?
Fun and Image: In which stage are the biggest blocks to fun and image?
Environmental Friendliness: In which stage are the biggest blocks to environmental friendliness?
24. Uncovering the Blocks to Buyers Utility
Purchase Delivery Use Supplements Maintenance Dispose
Customer Productivity:
Simplicity:
Convenience:
Risk:
Fun and Image:
Environmental Friendliness:
25. The Price Corridor of the Mass
Step 1: Identify the price corridor of the mass Step 2: Specify a price level within the price
corridor.
Three alternative products/service types:
Same Different form, Different form and
form same function function, same objective
High degree of legal and resource protection
Difficult to imitate
Price Corridor Some degree of legal and resource protection
of the Mass
Low degree of legal and resource protection
East to imitate
Size of the circle is proportional to
number of buyers that product/service
attracts •The price corridor of the mass not only signals the strategic pricing zone
central to pulling in an ocean of new demand, but also signals how you might
need to adjust your initial price estimates to achieve this. When your offering
passes the test of strategic pricing, your ready to move to the next step.
26. The Price Corridor of the Mass
Step 1: Identify the price corridor of the mass Step 2: Specify a price level within the price
corridor.
Three alternative products/service types:
Same Different form, Different form and
form same function function, same objective
Price Corridor
of the Mass
Size of the circle is proportional to
number of buyers that product/service
attracts
27. The Profit Model of Blue Ocean Strategy
The Strategic Price
A company begins with its strategic price,
from which it deducts its target profit
margin to arrive at its target cost. To hit
the cost target that supports that profit,
companies have two key levers: One is
streamlining and cost innovations, and
the other is partnering. When the target The Target Profit
cost cannot be met despite all efforts to
build a low-cost business model, the
company should turn to the third lever,
pricing innovation, to profitably meet the
strategic price.
The Target Cost
Streamlining and Cost
Partnering
Innovations
Pricing Innovation
29. Blue Ocean Idea (BOI) Index
DoCoMoCO
Philips Motorola i-mode
CD-i Iridium Japan
Is there exceptional utility? Are there
Utility compelling reasons to buy your
offering? - - +
Is your price easily accessible to the
Price mass of buyers? - - +
Cost Does your cost structure meet the target
- - +
cost?
Adoption Have you addressed adoption hurdles
up front? - +/- +
30. Blue Ocean Idea (BOI) Index
Is there exceptional utility? Are there
Utility compelling reasons to buy your
offering? - - +
Is your price easily accessible to the
Price mass of buyers? - - +
Cost Does your cost structure meet the target
- - +
cost?
Adoption Have you addressed adoption hurdles
up front? - +/- +