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blue ocean

innovation management

Yu-Chia Fang

on 24 June 2011

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Transcript of blue ocean

using a value creation compass to disover "Blue Oceans" creating unique offerings for new markets can make more profit than competing with rivals in existing ones advantages first-mover advantages
gaining economics of scale
building reputation and user loyalty
ability to fund the search for the next Blue Ocean Red Ocean mature or decline phase of the product-life cycle
suffer little or no revenue growth because of the increasing commodization of their offerings and decresing customer loyalty cutting produce costs zero sum game example A New
Curve Reduce Which factor should be

the industry's standard? reduced well below Create which factors should be

that the industry has never offered? created Eliminate Which of the factors
that the industry
takes for granted
should be eliminated Raise Which factors should be

the industry's standard? raised well above Stabell and Fjeldstad's value creation logic industrial effciency logic network services logic knowledge intensive logic producing a high volum of low cost, standardize offering connecting them to other members within the firm's network
the firm can encourage other entities to offer accessories that complement the offering's value using expertise to tailor offerings to match the customer's unique specifications Gund Build-A-Bear knowledge intensive logic network services logic profit sustainability less medium huge Huish Detergent, Inc. webkinz end
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