Is1 workshop 5 make, take & sell challenge v2 student
1. Industry Studies 1
Make, Take and Sell Challenge:
Using a blue ocean approach to
take your product to market
Topic Number: 5
2. Overview
Conventional business strategy has always focused on
increasing market share and winning over competitors in
order to increase profitability. However, in todays business
environment organisations are continually looking at new
ways and markets to gain incremental profit. What has
been uncovered is a new strand and ways of considering
untapped markets known as Blue Ocean strategy.
In essence, this is a market developing approach that looks
to create demand where none existed before. This is
advantageous as there is a lack of competition however it
comes with many challenges as well.
Today’s workshop we will explore this notion and look at
how your product could be market creating. We will
contrast a number of examples and relate these to your
product. Finally, we will look at some of the challenges you
may face when adopting a Blue Ocean strategy.
3. Learning outcomes for these workshops
• Develop and determine how you could adopt the
principles of Blue Ocean Strategy
• Critically evaluate examples of Blue Ocean Strategy
being adopted in the global consumer goods
industry
• Discuss the challenges you may face in undertaking
a Blue Ocean Strategy
6. Contrasting Red and Blue Strategy
View video: https://www.youtube.com/watch?v=V2b99iZviUk
7. What is Blue Ocean Strategy?
Value Innovation
Break the value-cost
tradeoff by answering the
following questions:
What factors can be
eliminated that the industry
has taken for granted?
What factors can be
reduced well below the
industry’s standard?
What factors can be raised
well above the industry’s
standard?
What factors can be created
that the industry has never
offered?
9. What is Blue Ocean Strategy?
Strategy Canvass
The strategy canvas
serves two purposes:
• To capture the current
state of play in the known
market space, which
allows users to clearly see
the factors that the
industry competes on and
where the competition
currently invests
• To propel users to action
by reorienting focus from
competitors to
alternatives and from
customers to
noncustomers of the
industry
10. What is Blue Ocean Strategy?
4 Actions Framework
11. What is Blue Ocean Strategy?
Tiers of Non-Customers
12. Task 1: Applying the concepts to your product
Take
10
minutes
Consider the following questions:
What factors can be eliminated that
the industry has taken for granted?
What factors can be reduced well
below the industry’s standard?
What factors can be raised well
above the industry’s standard?
What factors can be created that
the industry has never offered?
13. Task 1: Applying the concepts to your product
Each group
has 5
minutes to
feedback
14. Task 1: An example from TATA
Accommodating Safety Affordable
15. Task 1: An example from TATA
Accommodating Safety Affordable
17. Task 1: An example from TATA
3. Community
Sustainability
2. People
(Intrinsic and
Extrinsic)
1. Business
(commercial)
18. Task 2: Consider how you would
adapt your product
Take
10
minutes
1. Core benefit: the benefit
the customer is really
buying
2. Basic product: Marketer
must turn the core
benefit into a basic
product
3. Expected product: Set of
attributes and conditions
that buyers normally
expect
4. Augmented product:
Exceeds customer
expectations
5. Potential product:
Possible augmentations
and transformations that
a product might undergo
19. Task 2: Adapting your product
Each group
has 5
minutes to
feedback
22. Task 3: Taking your product to a new untapped
market
Take
10
minutes
Consider the following questions:
What would be the likely distribution
mechanism you would use?
How would you reach customers
that are currently untapped?
23. Task 3: Taking your product to a new untapped
market
Each group
has 5
minutes to
feedback
24. Task 3: Taking your product to a new untapped
market
Page 24
The Proposition Is Simple
Cash In Cash Out
Person 2 Person Transfer
Airtime Top-Up
Merchant Payment
Bill Payment
ATM Withdrawals
Social Payments
International Transfer
25. Page 25
Kenya growth
Over 5 million customers registered
Average of 10,000 new registrations per day
