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Topic 6 Lecture
Topic 6 Lecture
Topic 6 Lecture
[yellow tail]
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Blue Ocean Strategy
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Blue Ocean Strategy
Redefining the nexus between cost leadership and differentiation.
Unknown market spaces that have not, as yet, been subjected to competitive forces.
Automotive
Aviation
Pharmaceutical
Computing
Mobile Telephony
Internet
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Blue Ocean Strategy
The vast majority of new ventures represent extensions of, or
improvements to, existing industries.
Compelling evidence that where new markets and/or new industries are
created, there is a significantly greater generation of revenues and profits
when compared to new ventures that are merely extensions of, or
improvements to, existing industries.
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Blue Ocean Strategy
Technology is not necessarily the key driver however, innovation is
important particularly where it creates customer value.
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Red Oceans
The focus is on existing market and industry constructs and the necessity
for competition to not only survive but also to achieve success – this is a
limiting approach and also represents a zero sum game.
Industry structural conditions are a given and firms are at the mercy of
environmental and economic factors beyond their control.
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Blue Ocean Strategy
Blue Ocean Strategy
https://www.youtube.com/watch?v=8ExRnpy4rPE
https://www.youtube.com/watch?v=5Xd5lvyWMe8
https://www.youtube.com/watch?v=clp-IMpuwaQ
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Red Ocean vs Blue Ocean Strategy
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The Four Actions Framework
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Value Innovation
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Three Tiers Of Non Customers
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Three Tiers Of Non Customers
Tier One
Investigate dissatisfaction.
Tier Two
Tier Three
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Blue Ocean Examples
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Blue Ocean Examples
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Blue Ocean Examples
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Blue Ocean Examples
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Blue Ocean Examples
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Cirque du Soleil Strategy Canvas
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[yellow tail] Four Actions Framework
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[yellow tail] Strategy Canvas
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Group Exercise
• Pick a T&H business that has used a blue ocean strategy.
• Research what they have done in each of the areas of:
• Eliminate
• Reduce
• Raise
• Create
• Create a strategy canvas diagram to present back to the class.
Have a Productive Week!