Professional Documents
Culture Documents
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How to Create Uncontested Market Space and Make the Competition Irrelevant
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I. THE STRATEGY
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RED OCEAN Represent all the industries in existence today BLUE OCEAN Denote all the industries not in existence today space
Circus Industry Traditional Circus: Target Market : Children Dependent to : Star performance, animal shows High fun & humor High Thrills & dangers
unknown market
Cirque du Soleil: Target Market : Adults Not Dependent to Star performance & animal shows Reduce fun & humor Reduce Thrills & dangers Unique Venue Theme & Theater
Low Cost, High Price
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Value innovation is created in the region where a companys actions favorably affect both its cost structure and its value proportion to buyers Cost savings are made by eliminating and reducing the factors an industry competes on Buyer values is lifted by raising & creating elements the industry has never offered Over time, costs are reduced further as scale economies kick in due to the high sales volumes that superior value generates
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Eliminate Star Performers Animal Shows Aisle concession sales Multiple show arenas Reduce Fun and humor Thrill and danger
Create Theme Refined environment Multiple productions Artistic music and dance
High
Low
ho w s co nc M es ul sio tip ns le sh ow ar en as Fu na & hu m or Th r il l& da ng er Un iq ue ve nu e e wa tc hi M ng ul tip en le vi pr Ar od t is uc t ic t io m ns us ic & da nc e Pr ice an ce rm Pe r fo An im al s Th em
St ar
sle
Ringling Bros
Re fin ed
Ai
Cirque du Soleil
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Net Jets Case Study 1: 16 Ownership Aircraft
Price
Deadhead costs
in-flight service
Private Jet
Commercial Airlines
NetJets
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Curves Case Study
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Co nv en ie nc e
Curves
ng
en itie W s or ko ut eq ui pm en t W or ko ut t im e
No nt hr ea te ni
In st ru
M ot iv
Am
&
cip l in e
Home Exercise
W om an ly
Di s
fu n
at m
os ph er e
Pr ice
ct or s
at io
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Insulin Producer
Focus on Doctors
Direct to Patients
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Initial Price
Corrotion
Maintanance Cost
Fuel Consumpsion
Aesthetic design
Customer friendly
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Price
Reservation Desk
Extra Services
Hygiene
QB House
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From the value a market delivers today to the value it might deliver tomorrow CISCO Growing demand for high speed data exchange focus on high speed data technology CNN the rising tide of globalization first real time 24hours global network the
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Visual Awakening
Visual Exploration
Visual Communication
Compare your business with your competitors by drawing your as is strategy canvas. See where your strategy needs to change
Distribute your before Draw your to be Go into the field to and-after strategic strategy canvas based explore the six paths profiles on one page on insights from field to creating blue for easy comparison observations oceans Support only those Observe the distinctive Get feedback on projects and alternative strategy advantages of operational moves that canvases from alternative products or allow your company to customers, services close the gaps to competitors See which factors you actualize the new customers, and should eliminate, strategy noncustomers create or change Use feedback to build the best to be future strategy
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First Tier: Soon-to-be noncustomers who are on the edge of your market, waiting to jump ship Second Tier: Refusing noncustomers who consciously choose against your market Third Tier: Unexplored noncustomers who are in markets distant from yours
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No - Rethink
No - Rethink
No - Rethink
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Visi Pramudia Break through the Cognitive Hurdle Ride the Electric Sewer Meet the Disgruntled Customers Jump the Resource Hurdle
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face to face with worst operational problem
Low resources input but Redistribute Resources to the Hot Spots high potential gains Redirect Resources from the Cold Spots Trading your units excess resources in one area Engage in Horse Trading
Influencer in Organization Zoom in on Kingpins Transparency, inclusion & fair process Place Kingpins in a Fishbowl Atomize to Get the Organization to Change itself Framing the strategic challenge, actionable to all levels
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overcome political forces Who the most to gain from
Leveraging Angles the strategic shift Silencing Devils Getting a consigliore on the top management team
Who knows in advance all the land mines will fight you, who will support you who
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