1. Why it is so interesting the Blue Ocean Strategy? With the current technological stage, productivity is at high levels, the supply exceeds the demand and the prices are falling. The globalization adds a component that facilitates new entrants and low production cost, and to make it worst, the rich countries (with more consuming power/demand) have their population decreasing. So, the creation of new markets with focus on non-customers to create demand using blue ocean strategy will be an interesting approach, besides other aspects and methodologies. One key point of Blue Ocean Strategy is how to create value and how to make customer comfortable and willing to pay for it. Innovation has a key role on this matter, but not only. It must …show more content…
The last factors couple with a high level of offering, (above graphic), where we have only the blue value curve, are a good value curve for blue ocean strategy. 3.2. The Four Action Framework To create a new value curve and break the trade-off between differentiation and low cost, four questions shell be answered. 3.2.1. Which of the factors that industry takes for granted should be eliminated? Objective: • Eliminate factors that have long competed on. • Move the focus from benchmarking competitors. • Find out if it had a change in what buyers value. 3.2.2. Which factors should be reduced well bellow the industry’s standard? Objective: • Determine if products are overdesigned. • Find out, if it has occurred increase in cost structure for no gain. 3.2.3. Which factors should be raised well above the industry’s standard? Objective: • Eliminate the compromise that customers have with the industry. 3.2.4. Which factors should be created that industry has never offered? …show more content…
Three Characteristics of a Good Strategy A good strategy should have focus demonstrated on a clear company’s strategic profile and value curve. Also, must diverge from competition. And, it should have a compelling tagline. 3.4.1. Focus Every strategy must have a focus and the organization profile and/or the value curve must clearly show it. 3.4.2. Divergence When the strategy is reactive to keep up with competition, it loses its uniqueness. Applying the four actions, the organizations differentiate their profiles and the value curve will stand apart from competitors. 3.4.3. Compelling Tagline A good tagline delivers a clear message and advertises an offering truthfully. 4. Reconstructing Market Boundaries, the First Principle To move from red oceans, companies must not accept boundaries that define how they compete. They must look across: • Alternative industries; • Strategic groups within industries; • The chain of buyers; • Complementary product and services; • Functional and emotional appeal, and look across time. This will give some insights to reconstruct market and to open up blue
(p.2). Strategy Applied in the
SeaWorld has been in the spotlight for several years now. Whether it is negative or positive publicity, someone is talking about SeaWorld; from the new animal births at their facility, killer whales attacking their trainer and the sudden unexplainable deaths of many of their animals. In 2013 the documentary “Blackfish” explained how SeaWorld’s animals and staff are really treated. Since the release of Blackfish, SeaWorld’s image and attendance has gone down the drain. SeaWorld San Diego’s attendance is down 12% and SeaWorld Orlando is down 8% (Weisberg, 2015).
3. Threat of new entrants High barriers to entry in the industry. Licensing requirements are high. There is a minimum size requirement to achieve profitability and the initial investment is required and fixed costs of operating. How much of the control is in the hands of existing players of the market or key resources?
1.0. INTRODUCTION Every organization strives to benefit from creating value for its customers, in the most effective way, for the purpose of attaining competitive advantage in the business environment in which they operate. Philip Kotler(2015) defines marketing as “the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit”. According to Hollensen (2003), a strategy is a fundamental pattern of present and planned objectives…”
Market Positioning: Focus on differentiation via customization and generate higher margins vs. cost cutting to compete in the low cost category. 6. R&D upgrade: ACC needs to invest much more in technology to reduce losses as it has been 5 years since the last improvements were made. QUESTION 2 Q2: How big are the cost differences between DJC’s plant and ACC’s Sunnyvale plant?
Corporate Strategy defines the path of a company to achieve long-term goals and objectives. It plays a crucial role in determining the competitive position of an organization. The corporate strategy incorporates all core factors to ensure the success of an organization. Depending on the nature and objectives of the organization, the components of a corporate strategy varies. It is only the corporate strategy that integrates and links the vision, goals, business model and help in appropriate allocation of resources and finally in decision making process.
Now, like any other company out there in the corporate world, they all come across a point in business where they face a competitive situation, due to either their product line, pricing, or their financial system. According to our
Bark & Co. is a company founded by Matt Meeker, Henrik Werdelin and Carly Strife. The company owns several products – the initial and probably best known is ‘BarkBox’. Due to BarkBox’s success, the company Bark & Co. was created, which dedicates to build products that promote health and happiness of dogs everywhere (BarkShop, 2014). It was launched in December 2011 and had reached $25M in revenue by June 2013 with 100,000 subscribers (Fueled, 2013). Like illustrated in Figure 2, Bark & Co. has different businesses: ‘BarkPost’ is a dog content website that has the capability of receiving over 400,000 visitors monthly, ‘BarkCare’ is a dog health mobile application that can be reached 24 hours 7 days a week for vet consultation service (D’Onfro,
An effective corporate strategy will allow a company to gain a competitive advantage over its competitors. The most common competitive strategies as stated by Porter (1980) are 1) Overall Cost Leadership 2) Differentiation and 3) Focus. The one most applicable to State Street would be differentiation. Differentiation is defined by Porter (1980) as creating something that is perceived industrywide as being unique. State Street’s differentiation strategy is evident due to its long tradition in the industry, unique combination of skills drawn from other businesses, corporate reputation for quality, technological leadership, strong capability in research and ability to attract highly skilled labour Porter (1980).
Question1 Explain the advantages and disadvantages of Henry Mintzberg’s prescriptive schools of strategy Design school The process of conception is using the major idea of SWOT which divided into two sides; internal (strength and weakness) and external (opportunity and threat) factors. Social responsibility and Managerial values also play a role in the formulation of the strategy. When the four factors is analyzed, the next step is creation of strategy which is suitable to organization and final stage is implementation follow by that strategy. Advantages: -Separate the step between design strategy and implementation clearly
“An organizational strategy is the sum of the actions a company intends to take to achieve long-term goals (Johnson, 2016)”. Organizational strategy is derived from a company 's mission, which tells why an organisation is in business. There are three important aspects of organizational strategy such as resources, scope and the company’s core competency (Johnson, 2016). As Johnson (2016) postulated that top management produces the larger organizational strategy, while middle and lower management adopt goals and plans to satisfy the overall strategy. Germano (2010) states that leadership has a significant impact upon organisation and its success, whereby leaders determine values, culture and employee motivation.
Expanding into Latin America New markets for any company can be anywhere in the world and since this world every day is becoming more globalized every single company around the world is targeting moving into new places and being able to expand their horizons around the world. Latin America is a region that is becoming more and more approachable to companies from around the world. It provides with a fast variety of raw materials and labor possibilities for them to exploit. Before any organization moves into a new market it must first evaluate it and scan its possibilities in order to determine the best option for it. The following is a description of this process and the best options that the company selling high quality distance measuring technology
When a company is competing through its differentiation advantage; it would try to carry out its activities in a much better manner than the
This deals with a customers’ perception that a product or service they are buying provides them with a higher value than a competitor. Superior quality can be broken down into two kinds of attributes: quality as excellence and quality as reliability. A customers’ perspective of quality as excellence would be that they want a product or service that provides features and a level of service that has no comparison. With regard to quality as excellence, if customers perceive that the products design, features, and functions are better than everyone else, then they would be more likely to buy their product. Higher quality products allow for a higher sense of value provided to the customer.
Introduction The following strategic analysis report was carried out for Giant Hypermarket in Malaysia. Giant Hypermarket also popularly known as “Giant” is a subsidiary of Dairy Farm International. The objectives of the study is to advise the Board of Directors into a possibility to revisit and redesign the current business strategy based on the blue ocean strategy (Kim and Mauborgne, 2005) to provide value based innovation via cost reduction with increased value for buyers and to ensure sustainable business operation in Malaysia. Additionally, the analysis also includes the possibility of developing a global strategy for Giant.