1.BLUE OCEAN STRATEGY AND RED OCEAN STRATEGY - Wateen by MuaviaKhan

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									1.       BLUE OCEAN STRATEGY AND RED OCEAN STRATEGY
1.1. Analysis on the concept of Blue ocean and Red ocean
1.1.1. Definition of Blue ocean strategy
        Blue ocean strategy is the business management book published in year 2005. The book is
         based upon a “Howard Business Review” written by “W. Chan Kim” and “Renee
         Mauborgne”. According to the book
                                    THE BLUE OCEAN STRATEGY
                      “Is a way to make the competition irrelevant by creating
                      a leap in value for both the company and its customers”

1.1.2. Red Ocean
        The writers define the market universe into Red ocean and Blue Ocean and Red ocean
         represents the Known
                                 Red Ocean      =       The Known
        In Red Ocean the Company’s Market and industry that exist today.
        Red ocean represents the defined and acceptable limitation and the comparative naturally
         faster as they proceed to limited resources that means the competition is within existing
         market space and focusing on existing customers. This creates a corporate war, tends the
         water bloody, hence determine the red ocean.




1.1.3. Blue Ocean
        Blue ocean represents the unknown
                                      Blue ocean = The Unknown
        In blue ocean the company’s market and industry not in existence.
        Within a blue ocean unlimited opportunities to create new markets and new demands that
         awakes discovery. Because of the vast potential opportunities in blue ocean that makes the
         competition irreverent and focuses on non customers.
        Blue ocean strategy contrasts sparking with red ocean strategy and that seeks to escape
         from accepted market boundaries to create new market and reducing the competition
         behind.
        Value innovation is the core concept of the blue ocean strategy by ignoring the competition
         and focusing the strategic thinking on the buyer in leap in the value results for both the
         company and its customers. Adopting this approach increasing the company’s chance of
         surviving and growth increasingly credit and shrinking market spaces.

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1.2. Analysis of Wateen Telecom based on Red Ocean and Blue ocean

1.2.1. Wateen Telecom’s Customers and Non Customers group

     Customer Group is, to whom Wateen Telecom is currently providing the services but Non customers
     group are those, who are not targeted by Wateen Telecom. Following are the customers and Non
     customer group of Wateen Telecom.




1.2.2. Industry Competing Factors of Wateen Telecom (AS IT IS STRATEGY)

     Competing factors in which Wateen Telecom is competing with other competitors in Telecom
     industry are as follows




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1.2.3. Industry Competing factors among competitors (AS IT IS STRATEGY)

     Following table shows the competing factors among Wateen Telecom and its competitors such as
     Wi-Tribe and PTCL. Differentiation is based on three levels High, Medium and Low and in as it is
     strategy analysis is as follows


     Competing Factors                 Wateen Telecom          Wi-Tribe             PTCL

    Price                                  Medium                 High               Low


    Downloading Speed                       Low                   Low                High


    Downloading Size (Limit)               Medium                 Low                High


    Downloading Capacity                   Medium                 Low                High


    Coverage                               Medium                 Low                High


    After sale service                     Medium                 Low                High


    Initial device charges                  High                  Low                Low


    Activation Charges                      Same                  Same               Same


    Product Awareness                       Low                   Low                High


    Signal Quality                         Medium                 Low                Low




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1.2.4. As it is Strategy Canvases
      Following canvases shows the current situations (Red Ocean) of Wateen Telecom and its
      competitors such as Wi-Tribe and PTCL based on above competing factors in Telecom Sector of
      Pakistan

                   Wateen Convas




                   Wi-Tribe Convas




                                                                                       Page 4 of 9
       PTCL Convas




Wateen Vs Wi-Tribe Convas




                            Page 5 of 9
     Wateen Vs PTCL Convas




Wateen Vs Wi-Tribe & PTCL Convas


                                   Wateen
                                   Wi-Tribe
                                   PTCL




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1.2.5. Wateen From Red ocean to Blue ocean


                           Wateen in Red Ocean               Wateen in Blue Ocean

 Industry                 Broadband internet industry      Broadband internet industry
                           only                              &
                                                            TV Cable Industry

                          Young                            All buyer group
                          Educated Peoples                      o Young
 Buyer Group              Professionals                         o Aged
                                                                 o Housewives
                                                                 o Educated
                                                                 o Illiterate
                                                                 o Villagers etc


 Scope of Product         WiMax broadband internet         WiMax broadband Internet
                          DSL broadband internet            with additional features
 & Services                                                 DSL broadband internet
                                                            Wireless TV Cable with more
                                                             channels and ease in use



1.2.6. ERRC (Eliminate, Reduce, Raise and Create) Grid




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   Wateen in Red Ocean




Wateen in Blue Ocean




                         Page 8 of 9
Wateen in Red and Blue Ocean


                               Red Ocean

                               Blue Ocean




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