Professional Documents
Culture Documents
Lecture 5
Lecture 5
2012-13
Lecturer:
Dr Alberto Asquer
aasquer@unica.it
Phone: 070 6753399
Business Strategy and Policy
Lecture 5
Strategic entrepreneurship
and the Blue Ocean Strategy
Introduction
1. Strategic entrepreneurship
-------------
6. Summary
1. Strategic entrepreneurship
The process of seeking opportunities and sources of (sustainable)
competitive advantage that lead to superior firm performance
Avoidance strategies entail finding ways to enter the market and gain
market share in a way that does not (necessarily) harm competitors,
therefore making competitors' retaliation more unlikely to happen
Costs
Value innovation
Value
2. Blue Ocean Strategy
Within any given industry, every firm seeks to raise value & cut costs
in order to enhance value innovation and outperform the competitors
Within any given industry, every firm seeks to raise value & cut costs
in order to enhance value innovation and outperform the competitors
A Red Ocean
2. Blue Ocean Strategy
A Blue Ocean
2. Blue Ocean Strategy
A comparison between red and blue oceans:
Make the value-cost trade off Break the value-cost trade off
Align the firm value chain to Align the firm value chain to
the overall strategy (low cost seeking both differentiation and
or differentiation or focus) low cost
3. An example of Blue Ocean Strategy: [yellow tail]
3. An example of Blue Ocean Strategy: [yellow tail]
The setting: the US wine industry, in 2000...
Stagnant demand
Stagnant demand
But...
3. An example of Blue Ocean Strategy: [yellow tail]
But...
2002, it became the fastest growing brand in the histories of both the
Australian and the US wine industry; it was number one imported
wine into the US (more than French and italian wines)
2003, it became number one red wine in 750ml bottle sold in the US
(more than the same Californian wines)
2002, it became the fastest growing brand in the histories of both the
Australian and the US wine industry; it was
o i t? number one imported
wine into the US (more than Frenchy d
and italian wines)
idhe
t
w d
Ho
2003, it became number one red wine in 750ml bottle sold in the US
(more than the same Californian wines)
High
Premium wines
Dimensions
of competition
4. The Strategy Canvass and the Four-Actions Framework
A fresh way to design innovative products: the four-actions framework
Reduce
Which factors should be
reduced well below the
industry's standards?
Eliminate Create
Which of the factors that the Which factors should be
industry takes for granted
A new created that the industry has
should be eliminated? value curve never offered?
Raise
Which factors should be
raised well above the
industry's standards?
4. The Strategy Canvass and the Four-Actions Framework
A fresh way to design innovative products: the four actions framework
Wine complexity
Reduce Wine range
Vineyard prestige
Which factors should be
reduced well below the
industry's standards?
Eliminate Create
Which of the factors that the Which factors should be
industry takes for granted
A new created that the industry has
should be eliminated? value curve never offered?
High
Premium wines
Budget wines
Low
(www.yellowtailwine.com)
4. The Strategy Canvass and the Four-Actions Framework
(www.yellowtailwine.com)
4. The Strategy Canvass and the Four-Actions Framework
Some features of the [yellow tail] strategy:
While...
Key tools are the Strategy Canvass and the Four-Actions Framework