Main Concept In the Blue Ocean Strategy by W. Chan Kim and Renee Mauborgne, they discuss the concept of “blue oceans”. A blue ocean is created when an organization decides they don’t want to compete with other organizations in the same market. So they create a new market where there is no competition. Then markets that have competition are called “red oceans”. Red oceans are the markets that have a lot of competition, there’s nothing really special about them.
During a ten year study of 108 companies, it was found that 86 percent of new product launches where extensions in the red oceans. While only 14 percent were trying to create blue ocean markets. The 14 percent that decided to create a new market generated 38 percent of total revenues …show more content…
The strategy canvas serves two purposes, to capture the current state of play in the known market space. Which allows organizations to see the factors that the industry competes on and where the competition currently invests. The second purpose of the strategy canvas is to push organizations to action by reorienting their focus from competitors to alternatives and from customers to noncustomers of the industry. The four actions framework asks four key questions: which factors can be eliminated, which factors can be reduced, which factors should be raised, and what factors should be created. By asking these four questions, it brings attention to things that can be changed or done away with to create more value to both customers and the organization itself. The last tool used to achieve value innovation is the grid. The grid pushes organization to not only ask the previous four questions but also makes them think about the solutions, and forces them to act on those ideas. Another benefit to the grid is that managers will understand what is expected and will be able to act in …show more content…
The best way to do this is to create a strategy canvas rather than a strategic plan. Developing a strategy canvas is not an easy task, organization leaders are going to have to get their employees on the same page. Everyone should be thinking about what benefits the organization as a whole, including the consumers, and not just those in the organization. After leaders get everyone on the same page they need to send managers out into the field and communicate face-to-face with customers, and find out how they use or don’t use your product or service. After the managers have gathered their information, organization should hold a visual strategy fair where those managers can present their findings and how the organization can use the information. After the organization choses a new strategy they should let their decision be known to all employees in the organization. Management should walk employees through the changes so they better understand what is
During a ten year study of 108 companies, it was found that 86 percent of new product launches where extensions in the red oceans. While only 14 percent were trying to create blue ocean markets. The 14 percent that decided to create a new market generated 38 percent of total revenues …show more content…
The strategy canvas serves two purposes, to capture the current state of play in the known market space. Which allows organizations to see the factors that the industry competes on and where the competition currently invests. The second purpose of the strategy canvas is to push organizations to action by reorienting their focus from competitors to alternatives and from customers to noncustomers of the industry. The four actions framework asks four key questions: which factors can be eliminated, which factors can be reduced, which factors should be raised, and what factors should be created. By asking these four questions, it brings attention to things that can be changed or done away with to create more value to both customers and the organization itself. The last tool used to achieve value innovation is the grid. The grid pushes organization to not only ask the previous four questions but also makes them think about the solutions, and forces them to act on those ideas. Another benefit to the grid is that managers will understand what is expected and will be able to act in …show more content…
The best way to do this is to create a strategy canvas rather than a strategic plan. Developing a strategy canvas is not an easy task, organization leaders are going to have to get their employees on the same page. Everyone should be thinking about what benefits the organization as a whole, including the consumers, and not just those in the organization. After leaders get everyone on the same page they need to send managers out into the field and communicate face-to-face with customers, and find out how they use or don’t use your product or service. After the managers have gathered their information, organization should hold a visual strategy fair where those managers can present their findings and how the organization can use the information. After the organization choses a new strategy they should let their decision be known to all employees in the organization. Management should walk employees through the changes so they better understand what is