Blue Ocean Strategy Blue Ocean Strategy is a book that was written in 2004 to give its readers the ability to develop their brand in what some would call an abandoned or unfamiliar market place. The book was recognized by the Wall Street Journal as a best seller, along with numerous other recommendations and acknowledgments from industry giants. Blue Oceans was written by two authors with the intent to show that companies can succeed not by battling competitors, but rather by creating ″blue oceans″ of uncontested market space (Kim, Mauborgne, 2004). In marketing, the blue ocean strategy is a unique approach to building a customer base. Instead of trying to compete in a crowded marketplace with products that already exist, a blue ocean strategy looks to create an entirely new market segment.
Case Analysis of Blue Orb Key Persons: Mike Bowers the Chief Marketing Officer (CMO) and Pete McAlindon the founder and Chief Executive Officer Key Issue: The key issue based on which the decision needs to be made is whether or not the company should outsource their marketing plan of launching a competition to FightWare and incur a expense of $25,000 or the alternative being that they design the competition in-house. Basic Facts: The Company is aiming at increasing their revenue by actually transforming the free subscribed users, of the software, to paid and registered users. For that reason they require focused marketing strategy in order to gain that kind of customer attention. The management of the firm hence is considering the option of outsourcing a unique strategy to another organization called FightWare. According to this unique strategy the company is considering the option of arranging a nationwide competition through FightWare, which will cost them about $25,000.
MBA 667: Leaders on Leadership (Fall 2012) Book Review Blue Ocean Strategy: How to create uncontested market space and make the competition irrelevant. By W. Chan Kim and Renee Mauborgne Blue Ocean Strategy is about creating new markets which make competition irreverent. Kim and Mauborgne present the argument that in order for a company to break-out from the competition and sustain success, they must redefine the boundaries of the market and create their own “blue ocean.” In this newly formed blue area without the “bloody” competition in the red ocean, the innovative company can now capture new demand and reap success. The authors have created a very clever metaphor which ensures the readers want to be in the nice, clean, shimmering, blue ocean vice the “bloody” red ocean. There are six principles of the blue ocean strategy: (1) Reconstruct market boundaries, (2) Focus on the big picture, not the numbers, (3) Reach beyond existing demand, (4) Get the strategic sequence right, (5) Overcome key organizational hurdles, and (6) Build execution into strategy.
In Red Oceans Strategy, competitions are the core value and core strategy. Thus, one effective way to earn more market share is to increase sales costs or reduce profit. In red oceans, due to the market is over crowd, the profit and development prospect is not very well. 2. The authors allude to the fact that most companies borrow their strategic thinking from military models (see ‘Paradox of strategy’).
Walt Disney Imagineering Some of the challenges Disney faced when entering the global market was language, cultural differences, political challenges and foreign currency. Disney created its Imagineering team to be visionaries for the company and to assist with breaking through those barriers they encounter. Disney’s goal was to penetrate the global market while “preserving its fundamental message and still catering to the wildly varying taste of different world cultures” (Nickels, McHugh, McHugh, n.d.). Their three strategic priorities are: creativity and innovation, application of technology, and global expansion. Since the United States is only 5% of the total world population, Disney understood the importance in global expansion and entering new markets.
Porter's Five Forces Model One hotly contested and highly competitive industry is the movie rental business. You can rent videos from local video rental stores, you can order pay-per-view from the comfort of your own home, and you can rent videos from the Web at such sites as Netflix. Using Porter’s Five Forces Model, evaluate the relative attractiveness of entering the movie rental business. Is buyer power low or high? Is supplier power low or high?
MODELS Five-Forces Model of the On-Line Retail Jewelry Market NEW ENTRANTS SUPPLIERS BUYERS SUBSTITUTES INDUSTRY RIVALRY Summary of the Competitive Nature of the Industry Generic Strategy Model Narrative summary of model analysis results Company Value Chain Narrative summary of model analysis results: Indicate which segments are most important and most costly and discuss the significance of the situation and what should be done. Competitive Strength Assessment Weight Blue Nile Other on-line only Major Chains Breadth of product line .15 Reputation/ Image .25 Quality/appeal of product offerings .15 Caliber/completeness of product information .15 Relative Cost Position .10 Customization capabilities .10
9/15/2013 • • • Roger re: Blue Nile case study Dr. James Bronson 800 W. Main Street Whitewater, WI 53190 Dr. Bronson, Following are my theories and conclusions to the case study of the Blue Nile Corporation. What is Blue Nile’s business model? Blue Nile’s business model is built on creating profit in three key areas: • Online presence – by operating only with an online presence, Blue Nile saves a significant amount of money over traditional brick and mortar stores. Most of the company’s earliest competitors were all conventional brick and mortar, and by eliminating the costs associated with real estate, the company was able to profit from that strategy. • Creative partnerships – by signing exclusive contracts with their suppliers that allows the suppliers to carry most of the financial burden associated with Blue Nile’s customer transactions, the company is able to contribute to their profitability.
Sony is also merging both the graphics and data segment which threatens Barco’s market segmentation. Barco has to maintain its image as technology leader and also maintain its market share by giving competition to Sony’s 1270. SITUATION ANALYSIS (Max 200 words) Company: • Barco Projection Systems (BPS) is the second largest division of Barco N.V • Heavily R&D oriented • Niche segment of industrial markets • Its strength is in providing more technologically advanced and reliable products • Three segments of Video, Data and Graphics projectors. • Its future vision is to be present in both TV and Radio • Batch producer for high end customers. • Adopted the strategy of becoming leader in distinct, but complementary niche markets along with international expansion.
The idea of working on and figuring out how the different vehicle’s engines work and how the engines are put together, fascinates me, and provides a great sense of interest into being able to one day design and build vehicles for people to drive. The College of Business (2010) states that, “Automotive engineers are the people who design and make cars for the efficiency, convenience and safety of people who drive them. The creation of the different types of vehicles, the research, design and efforts of many engineers, particularly the automotive engineer goes into this process.” Vehicles are intriguing in the sounds of the motor and in how the different types of motors perform in each vehicle, depending on the horsepower and the driver behind the wheel. My interest extends from the design of vehicles, the engine and transmission, how the vehicles operate, and how far a driver is able to push the vehicles and to what limit. My interest is in all the modifications that an automotive engineer can do to enhance the speed and power of the motor, how to disassemble the motor, to reassembling it.