Presentation Transcript
Slide 1:Karthik Krishnamoorthy
BUS 240 - eCommerce
Red Ocean Vs Blue Ocean :Red Ocean Vs Blue Ocean
Creating Blue Ocean Value Innovation :Creating Blue Ocean Value Innovation Company’s cost act favorably for both innovators and buyers
Cost savings occur by eliminating and reducing factors an industry competes
Buyer value is provided by never before offered products
Cost is reduced further as scale of economy kicks in VI VI COST VALUE
Creating Blue OceanTools :Creating Blue OceanTools Strategy Canvas
diagnostic and action framework for building a compelling strategy
X-Y Axis, where X represents factors and Y represents company position
E.g Yellow Tail Wine
Creating Blue OceanTools :Creating Blue OceanTools Four Action Framework
Eliminate, Reduce,Raise and Create
Creating Blue OceanTools :Creating Blue OceanTools ELIMINATE-REDUCE-RAISE-CREATE GRID
E.g Yellow Tail Wine
Creating Blue OceanThree Characteristics :Creating Blue OceanThree Characteristics For a good strategy
Focus - on the important areas and not on every single factor
Divergence - away from the competitors offerings
Tagline - has a simple easy to communicate
Creating Blue OceanSix Principles :Creating Blue OceanSix Principles Formulation Principles Reconstruct Market Boundaries
… overcome believes. Reach beyond existing Demand
… go for uncontested space. Get the strategic sequence right
… value [innovation] first.
Creating Blue OceanSix Principles :Creating Blue OceanSix Principles Buyer utility Is there exceptional buyer
utility in your business idea? Adoption What are the adoption hurdles in actualizing your business idea?
Are you addressing them up front? Price Is your price easily accessible to the mass of buyers? Cost Can you attain your cost target to profit at your strategic price? YES YES YES YES No ïƒ Rethink No ïƒ Rethink No ïƒ Rethink No ïƒ Rethink
Creating Blue OceanSix Principles :Creating Blue OceanSix Principles Execution Principles
Overcome key organizational hurdles
Cognitive, resource and political hurdles
Build execution into strategy
Fair process strategy formulation
Examples
Yellow Tail
Southwest
Cirque du Soleil
Home Depot
Thank you :Thank you Recommended !