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  • Blue Ocean Strategy: From Theory To Practice: Case Analysis

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    shukla224
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    This document summarizes the key concepts of blue ocean strategy and provides an example case study of Casella Wines and its yellow tail brand. It describes how blue ocean strategy involves creating a new market space by eliminating and reducing factors that existing competitors compete on, and creating and raising factors that non-customers value. The document outlines Casella Wines' use of the four action framework to eliminate intimidating displays and complex terminology, reduce wine varieties, raise the price above the budget market, and create new demand by positioning yellow tail as an accessible social wine. It analyzes how yellow tail shifted the strategic canvas away from competitors and towards new customers to carve out an uncontested market space.

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    Blue Ocean Strategy Case Study

    Original Title

    Section3_Group12_Case 4 - Blue Ocean

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    This document summarizes the key concepts of blue ocean strategy and provides an example case study of Casella Wines and its yellow tail brand. It describes how blue ocean strategy involves creating a new market space by eliminating and reducing factors that existing competitors compete on, and creating and raising factors that non-customers value. The document outlines Casella Wines' use of the four action framework to eliminate intimidating displays and complex terminology, reduce wine varieties, raise the price above the budget market, and create new demand by positioning yellow tail as an accessible social wine. It analyzes how yellow tail shifted the strategic canvas away from competitors and towards new customers to carve out an uncontested market space.

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    © All Rights Reserved
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    26 views8 pages

    Blue Ocean Strategy: From Theory To Practice: Case Analysis

    Uploaded by

    shukla224
    This document summarizes the key concepts of blue ocean strategy and provides an example case study of Casella Wines and its yellow tail brand. It describes how blue ocean strategy involves creating a new market space by eliminating and reducing factors that existing competitors compete on, and creating and raising factors that non-customers value. The document outlines Casella Wines' use of the four action framework to eliminate intimidating displays and complex terminology, reduce wine varieties, raise the price above the budget market, and create new demand by positioning yellow tail as an accessible social wine. It analyzes how yellow tail shifted the strategic canvas away from competitors and towards new customers to carve out an uncontested market space.

    Copyright:

    © All Rights Reserved
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    of 8

    BLUE OCEAN STRATEGY:

    FROM THEORY TO PRACTICE


    Case Analysis
    Section 3 Group 12
    FT183004 ABHISHEK SHUKLA
    FT183033 GOVIND RAJ
    FT183034 HARSIMRAN PREET SINGH
    FT183035 HRITUPARNO DEB
    FT183099 SWAPNIL SRIVASTAVA
    FT183104 VANESSA J VADASSERY
    RED OCEAN Vs. BLUE OCEAN
    RED OCEAN BLUE OCEAN
    Compete in existing market space Create a new market space
    Competition is the benchmark Make competition irrelevant
    Exploit existing demand Create and capture new demand
    Industries structural conditions are given Reconstructionist view
    Make the value cost trade-off Break the value cost trade-off
    THE STRATEGY CANVAS

    The diagnostic and action framework


    for building a compelling blue ocean
    strategy

    Horizontal axis: Factors on which the


    industry competes on and invests in
    Vertical axis: The level of offering that
    buyers receive on these factors.

    To shift the strategic canvas: reorient


    strategic focus from:
    Competitors to alternatives
    Customers to non-customers
    EXAMPLE OF BLUE OCEAN STRATEGY:
    CASELLA WINES
    FOUR ACTION FRAMEWORK: [yellow tail]
    Eliminate factors that companies compete on. Do buyers value these factors?
    Eliminated the ageing and sophisticated taste- had a simple fruity sweetness
    Are the products or services over-designed?
    Eliminated enological terminology and intimidating displays

    Eliminate compromises the industry forces a company to make


    Extensive varieties in wines demotivated customers
    [yellow tail] had only two varieties of wine: Chardonnay and Shiraz

    Create new demand and shift the strategic pricing


    Social drink accessible to all
    Stole sales from competitors and pulled more than 6 million new customers
    Raised wine price above budget market
    ELIMINATE-REDUCE-RAISE-CREATE
    ELIMINATE-REDUCE-RAISE-CREATE GRID
    CHARACTERISTICS OF A GOOD STRATEGY

    The three qualities:


    Focus
    Divergence
    Compelling tagline

    These three criteria serve as an initial litmus test of the commercial viability of blue
    ocean ideas. The [yellow tail]s value curve has focus; the company does not diffuse its
    efforts across all key factors of competition. Divergence is not because of benchmarking
    competitors but instead looking across alternatives. The tagline of [yellow tail]s strategic
    profile is clear: a fun and simple wine to be enjoyed every day

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