Presentation is loading. Please wait.

Presentation is loading. Please wait.

Getting the Strategic Sequence Blue ocean Strategy, CH.6 Team 4, John shonk Bob Odgers Don Ewalt.

Similar presentations


Presentation on theme: "Getting the Strategic Sequence Blue ocean Strategy, CH.6 Team 4, John shonk Bob Odgers Don Ewalt."— Presentation transcript:

1 Getting the Strategic Sequence Blue ocean Strategy, CH.6 Team 4, John shonk Bob Odgers Don Ewalt

2 Right Strategic Sequence

3 1.Exceptional Utility, Strategic pricing, Target cost - Pricing aimed at giving a company a competitive advantage over its rivals = failure! too many tools  people not understand what its purpose was. No tagline.

4 Right Strategic Sequence Ford model T: 1.Convenience (no practical on dirt/mud road) 2.Risk (luxury, and expensive to fix) 3.Exceptional utility for the masses

5 Exceptional Utility to Strategic Pricing Set the right price ◦ Volume generates higher returns ◦ Value may be closely tied to number of users (all or nothing) ◦ Free riding ◦ Excludability

6 Price Corridor of the Mass (Identify) Comparing new product to alternative products ◦ Different form, same function ◦ Different form and function, same objective

7 Price Corridor of the Mass (Specify) High, middle ◦ Legally protected ◦ Exclusive asset Low ◦ High fixed costs ◦ Attractiveness depends on network externalities ◦ Cost structure benefits from steep economies of scale and scope

8 Strategic Pricing to Target Costing Strategic Price – Desired Profit Margin = Target Cost Strategic profile: divergence and focus 3 levers to hit cost target ◦ Streamlining operations and cost innovations ◦ Partnering ◦ Changing price model of the industry

9 Adoption When entering a blue ocean a company must acknowledge 3 main stakeholders: 1. Employees 2. Business partners 3. The general public

10 Blue Ocean Idea (BOI) Index Utility Is there exceptional utility? Are there compelling reasons to buy your offer? Price Is your price easily accessible to the mass of the buyers? Cost Does your cost structure meet the target cost? Adoption Have you addressed adoption hurdles up front?

11 Phillips CD-I and Motorola Iridium Neither company created exceptional buyer utility Neither company had a price that was accessible Neither company’s cost structure met the target cost But, Motorola did have support for the adoption

12 NTT DoCoMo and I-mode Offering internet on cell phones

13 Why the success? A reasonable price to allow impulse purchases Made great win-win partnerships c-HTML Open discussion about the adoption Public was eager

14 Right Strategic Sequence http://www.forbes.com/2009/02/25/netflix- microsoft-blockbuster-personal-finance- investing-ideas_movie_rentals.html http://www.youtube.com/watch?v=x4AavyoGijo


Download ppt "Getting the Strategic Sequence Blue ocean Strategy, CH.6 Team 4, John shonk Bob Odgers Don Ewalt."

Similar presentations


Ads by Google