He sought to achieve a focus on value innovation through applying the four actions framework; eliminate, reduce, raise, create see last blog. One success story that does exist is Nintendowho first applied the blue ocean strategy to create the Nintendo DS handheld game system which was the first portable gaming system to offer dual-screen gaming and a touch screen in Value innovation is necessarily the alignment of innovation with utility, price and cost positions.
In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. The most important thing about the idea of eliminate is to think through it with a clean slate perspective. This questions which areas of a company or industry could be completely eliminated to reduce costs and to create an entirely new market.
His strategy canvas looked like this. To read the full case studies click on the links below. It is more common for a blue ocean to be created from within a red ocean when a company expands the boundaries of an existing industry.
In blue oceans demand is created, rather than fought over. In they were one of the first companies in Australia to launch the Livescribe Smartpen — a pen that digitally captures hand written text and audio and converts it to formats such as pdf; a great efficiency tool for anyone who takes hand written notes.
Reduce An Attribute In some cases, especially with regard to disruptive situations, reducing the performance level of a particular attribute is the right strategy.
Blue ocean is an analogy to describe the wider, deeper potential of market space that is not yet explored.
It allows companies to analyse their current situation and understand the criteria and assumptions against which both they and their competitors compete. For a time, Blockbuster ruled the movie rental business by having a nationwide brick-and-mortar store presence. This prompts companies to be innovative with their products.
Such a strategy therefore allows firms to largely play a non—zero-sum game, with high payoff possibilities. Starbucks entered a historically crowded marketplace, the coffee shop industry; however, it found its way to success through the blue ocean strategy.
They basically eliminated the store and created a new value driver with the DVD vending machine.
The real opportunity is: The book uses many examples across industries to demonstrate how to break out of traditional competitive structuralist strategic thinking and to grow demand and profits for the company and the industry by using blue Micromax blue ocean strategy reconstructionist strategic thinking.
With the Moto X, anyone could go online and choose their own color scheme which would then be manufactured to those specifications in Texas then shipped out from there. Many of these tools are also used by Six Sigma practitioners and proposed by other management theorists.
The four principles are: In blue oceans, demand is created rather than fought over. They focus on dividing up the red ocean, where growth is increasingly limited. As the market space gets crowded, prospects for profits and growth are reduced.
Starbuck also championed professionalism and excellent customer service, for example, offering personalised coffee cups. The Strategy Canvas The strategy canvas is one of the most useful tools in the blue ocean strategy methodology.
Officeworks and other retailers added little or no value to the product beyond distribution. The four actions framework aids in eliminating the trade-off between differentiation and low cost within a company.Blue Ocean Strategy is a marketing theory from a book published in which was written by W.
Chan Kim and Renée Mauborgne, professors at INSEAD. [citation needed Overview. Based on a study of strategic moves spanning more than a hundred years and thirty industries, Kim and Mauborgne argue that companies can succeed by.
Essays - largest database of quality sample essays and research papers on Micromax Blue Ocean Strategy. What is Blue Ocean Strategy? Description. Rather than competing within the confines of the existing industry or trying to steal customers from rivals (Bloody or Red Ocean Strategy) W.
Chan Kim and Renée Mauborgne are suggesting Blue Ocean Strategy: developing uncontested market space that makes the competition irrelevant. Though the blue ocean strategy to be presented in this assignment can be meant to be used for the Indian cellular phone industry as a whole, the example of the MICROMAX Q55 Bling Phone brand has been used to give clarity and direction to this strategy.
One of the techniques used in Blue Ocean strategy is the strategy canvas.
It is a simple but very powerful visualisation methodology. A strategy canvas is the most fundamental tool used in the Blue Ocean Strategy framework. It is designed to give you an immediate snapshot of how your business/product/service stacks up against the competition.Download