Management: Blue Ocean Strategy

Document Sample
Management: Blue Ocean Strategy Powered By Docstoc
					Management: Blue Ocean Strategy
Blue Ocean Strategy Overview
Blue Ocean Strategy (Blue Ocean Strategy) was first used by W. Qian Jin (W. Chan
Kim), and Renee ? Mauborgne (Renée Mauborgne) in February 2005 in two
coauthored "Blue Ocean Strategy" a raised therein.
Blue Ocean Strategy that focused on the Red Sea amount to acceptance of the
restrictive factors of commercial war, that the limited land in the win, but denied that
the business world may open up new markets. Blue Ocean Strategy, view buyer needs
to move beyond competition, beyond the existing border competition, the value of the
different elements of a buyer market and re-sorting filter, structure from the position
given the option to change the market structure itself has changed.
Blue Ocean Strategy actions to (Strategic Move) as the unit of analysis, strategic
action to open up the market that contains the major business projects involving a set
of management actions and decisions, the study in 1880 and 2000 more than 30 150
industry based on the strategic action , pointed out that the value of innovation (Value
Innovation) is the cornerstone of Blue Ocean Strategy. Value innovation challenges
the traditional dogma that is based on competitive value and cost trade-off between
allowing companies to innovation and effectiveness, price and cost of integration of
body, than against the current industry best practice to catch up with rivals, but to
change the industry landscape box reset the rules of the game; not target existing
markets, "high" or "low-end" customer,
but the potential demand of the buyer for the general public; not blindly market
segments to meet customer preferences, but the combined market segments
integration requirements.
A typical example is the Cirque du Soleil, Blue Ocean Strategy, subject to the
traditional circus "animal protection", "supply-side
Kanjia circus star" and "family entertainment competition, the
buyer Kanjia" and shrink the circus industry, from the traditional circus
adults and children in the audience turned to the business community in order to
express the form of circus drama, plot, to attract people several times higher than the
traditional circus tickets to enjoy this unprecedented entertainment.
[Edit this section] Blue Ocean Strategy and Red Sea Strategy
Let us imagine, we think of the whole market, ocean in the composition of the red sea
and the blue sea, the Red Sea on behalf of all the industries now exist, this is our
known market space; Blue Ocean did not exist today on behalf of industry, this is the
unknown market space. Then the so-called Blue Ocean Strategy is not difficult to
understand, and Blue Ocean Strategy is actually beyond the traditional industrial
enterprises competition, creating a new corporate strategy. Now this new economic
concept, being the concern of the global business community, some people even said
that the next few years are destined to become a "Blue Ocean
Strategy" year.
"Red Sea" competition is extremely fierce, but "Blue
Ocean" is hardly a no competition in the field, but one got through the
differentiated Shouduan new market areas, where businesses with its innovative
capacity for faster growth and higher profits.
Blue Ocean strategy requires companies breaking the bloody competition formed the
"Red Sea", new non-competitive market space. And there,
usually contraction in the demand for different trend in the competitive market, blue
ocean strategy to consider is how to create needs to break through competition. Our
goal is known in the current market space of the "Red Sea"
competition, the build systematic, workable blue ocean strategy, and implementation.
Only in this way can enterprises to wise and responsible manner Blue Ocean area
expansion, while achieving the maximum opportunity and minimize risk. any
enterprise, regardless of size, is already the industry enterprises, or new companies
entering the industry should not be, can not take undue risks.
Blue Ocean Strategy is currently in China, business, academic and community
attention. Well-known professional manager Mr. Su Qiyang practical application on
the Blue Ocean Strategy published in "Letters Blue Ocean
Strategy", China Internet Association, a special offer a regular seminar on
"Blue Ocean Sharon."
Simple words to explain: the Red Sea is the red sea, the nets within the scope of the
water turbidity, nutrient-poor, but many people in this small circle within the not the
Wai Wai, everybody competitive; and relatively blue the sea is the blue sea, shark
prevention net, the depths of the sea, water and nutrients are very very rich in a wide
range, less competition, people, Blue Ocean competition winner will get a lot more
than the Red Sea interests.
[Edit this section] to the idea of Blue Ocean Strategy
Blue ocean strategy concept layout need to answer four questions:
Which was identified as the natural elements of industry need to remove?
Excluding this industry Competitive comparisons of the elements, which are often
taken for granted, although they no longer have value.
What elements of content should be reduced to below industry standards?
The problems have prompted a decision to see whether the existing product or service
features to design too far, just to compete and beat than the competitors, companies
are required to exceed customer and adding to the cost.
What elements should be increased to levels above industry standards?
It encourages consumers to explore the industry had to make compromises.
What are the elements of industry has never had the need to create?
This problem to help find a new source of buyer value to create a new industrial
strategy needs to change the pricing standards.
[Edit this section] the six principles of blue ocean strategy
A total of six principles of blue ocean strategy, strategy formulation four principles:
reconstruct market boundaries, focus on global rather than numbers, beyond existing
demand, a reasonable strategy to follow the order, and the implementation of the
principle of two strategies: the key to organizational barriers to overcome, the
strategic implementation of the completion strategy.
Principles of Blue Ocean Strategy: reconstruct market boundaries
From head-on competition to create a blue ocean, using the six paths reconstruct
market boundaries.
1, Industry: Industry across his choice of market
Hung Hai Siwei: parrot bound for the industry, and are anxious to become the best of
Blue Ocean view: a company not only compete with their industry, but also with his
choice (Alternatives) products or services industry competitors.
Example: Japanese telecom operator NTT DoCoMo introduced in 1999 a key i-mode
mobile phone Internet access, voice services will only use the customer into using
voice and data services (music, pictures, information) customers.
2, the strategic groups: across industry groups within the different strategies of market
Hung Hai Siwei: restricted by the widely accepted concept of strategic groups (such
as luxury cars, economy cars, family cars), and work in the group topped.
Blue Ocean view: Breaking the narrow vision, find out what factors determine the
customer choice, such as high-grade and low-end consumer choice.
Example: Curves fitness club for women in the United States service, excluding
luxury facilities, small community distribution, a group member in turn use the
equipment, three times a week for half an hour to complete, only 30 U.S. dollars per
3, the buyer groups: redefining the industry buyer group
Hung Hai Siwei: only concerned with a single buyer, not the end-users.
Blue Ocean view: the buyer is a buyer, user and influence the buyer who together
constitute the chain.
Example: Novo Nordisk is a manufacturer of insulin, the insulin injection pen to
integrate and create NovoLet injection device, easy to carry patients to use.
4, products or services: across complementary products and services, depending on
the market
Hung Hai Siwei: identical manner range of products and services delimitation.
Blue Ocean view: complementary product or service contains not explore the needs of
customers a simple way is to use the product before, during, and after what are the
Example: North off the company found that city government is not concerned about
the price of the bus itself, but the maintenance costs, through the use of glass fiber
body, raising prices of vehicles, but lower maintenance costs, and create a win-win
situation with the city government.
5, function-oriented emotions: function across industries for the seller and
Hung Hai Siwei: to accept the functions of curing the existing industry-oriented
Blue Ocean view: Market research feedback is often the result of industry, education,
business challenges and emotional orientation to existing features found in the new
space, if the emotional level competition, which could remove the elements to make it
functional? And vice versa.
Example: fast hair housing for men, abolition of massage, drinks and emotional
elements to "air wash" instead of "wash",
focusing haircut, hair time reduced to 10 minutes and costs 1,000 yen from 3,000
6, time: time to participate in shaping external trends across
Hung Hai Siwei: develop strategies only concern at this stage of the competitive
Blue Ocean view: insight from a business point of view the trend of technology and
policy for how to change the value of customers, how they affect business model.
Example: Apple's iPod and iTunes by providing legitimate music download
service, improve the massive music library, high quality, single download and low
cost (0.99 U.S. dollars / first).
The second principle of Blue Ocean Strategy: focus on global rather than numbers
A company should never outsource its eyes, is the great strategic insight into the
grassroots level, challenge and competition results of the border. Blue Ocean Strategy
recommends strategic layout plan drawn to a business strategic positioning in the
market available to the visual forms, and open various types of personnel organization
and creativity, the vision to lead the Blue Ocean.
Three Principles of Blue Ocean Strategy: beyond existing demand
Typically, companies to increase their efforts to retain and expand market share of
existing customers, often results in a more refined market segmentation, however, for
the Blue Ocean maximum size, companies need to go against the norm, not only to
focus attention the customer, also need to focus on non-customers. Do not blindly
through personalization and customer segments to meet the difference, the buyer
should look for common ground, to put non-custome

Shared By: