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Blue ocean strategy

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by

Ken Yogurt

on 6 November 2014

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Transcript of Blue ocean strategy

Blue ocean strategy
Application of the case of Wikipedia
Three strategy propositions
value proposition
The utility buyers receive from an offering minus the price they pay for it.
profit proposition
The revenues an organization generates from an offering minus the cost to produce and deliver it.
people proposition
The positive motivations and incentives put in place for people needed to support and implement the
strategy
Analyze Wikipedia's Three strategy proposition
The Four Actions Framework
Reduce
Which factors should be reduced well below the industry's standard?
Eliminate
Which of the factors that the industry takes for granted should be eliminated?
Raise
Which factors should be raised well above the
industry's standard?
Create
Which factors should be created that the industry has never offered?
people proposition
Factors
Eliminate: legal barriers
(e.g. copyright)
Free to use and access
Reduce: Technical barriers
(e.g. non-registered editors)
creative and interactive editing process
create
create
set up: a virtual community
(e.g. non-monetary reward
mechanism)
raise
pride and ownership of Wikipedians
People Proposition of the online Encyclopedia Industry
Britannica.com versus Wikipedia
Strategy Canvas - People Proposition
hi
lo
Legal barriers
technical barriers
Pride & ownership
Free to use
& access
Creative & interactive
editing process
Virtual community
Reference
Kim, W. C., & Mauborgne, R. (2005).Blue ocean strategy.
California Management Review
, 47(3), 106.
Kim, W. C., Mauborgne, R., &Ling, K. (2014).
MAKING A BLUE OCEAN STRATEGIC MOVE THAT DISCOURAGES IMITATION: THE CASE OF WIKIPEDIA
. INSEAD.
Background of Wikipedia
Making a Blue Ocean Strategic Move that Discourages Imitation:

The Case Of Wikipedia

Group B3: Xi CHEN, Jian FANG, Carleigh Kayi HO, Shaoyou XIE, Hao YANG.
began with the launch of Wikipedia 
on Monday 15 January 2001 by 
Jimmy Wales
 and 
Larry Sanger
.



Core mission: 'Free knowledge for free minds'

Main Competitor: Britannica.com
1981: Britannica published its first digital Encyclopedia

1995: introduced Britannica.com Web site

serve
tens of millions
of people around the world

with more than
120,000 articles
that are updated regularly


1768: the UK publisher of knowledge and learning products
Encyclopedia Britannica

Reduce
Data, accurate& reliability

Eliminate
Free
No subscription&
advertisement
Copyright
restrictions

Create
Multi-language
Interactive Community

Raise
Real-time, fast update
Number of article
Easy to access and find

Value
Proposition

Strategy Canvas - Value Proposition
Britannica.com versus Wikipedia
Value Proposition of the online Encyclopedia Industry
hi
lo
subscription
fee
advertisement

Data
accuracy &
reliability

Number of article

Easy to
access &
find

Real-time,
fast
update
Multi-language

interactive
community
PROFIT PROPOSITION
Comparison of income & cost
Business Model
Comparison

Wikipedia
Britannica.com
Income

Cost

Wikipedia Foundation

Individual and corporate
donation
Administrative staff cost

Top placement among
search engines

Subscription

Advertisement

Editors and writers

Marketing expenses

Distribution and member servicing costs

Administrative staff


VALUE PROPOSITION
Strategy Canvas - Profit Proposition
Profit Proposition of the online Encyclopedia Industry
Britannica.com versus Wikipedia
hi
lo
Subscription revenues

editors & writers
Advertisement

Marketing
expenses
Administrative staff cost

Top placement on search engines

Wikipedia
foundation
Individual & corporate donations

Wikipedia includes over

33.7 million
 freely usable articles in
287
languages

written by over
49 million
registered users and numerous anonymous contributors worldwide.

Wikipedia is the world's
sixth
-most-popular website.

increasing revenue from $50.9m to $52m during the period of 2013-2014 and plan to up to
$58.5m
next year
Results of Blue Ocean practice
As of October 2014
Alignment of Three Strategy Propositions
Value proposition
profit proposition
people proposition
Differentiation & Low cost
Wikepedia (2014) Wikimedia Foundation 2014 -15 Annual Plan, online at:http://upload.wikimedia.org/wikipedia/foundation/e/e0/2014-15_Wikimedia_Foundation_Plan.pdf
(Accessed 04 November 2014)


Wikepedia (2014) Encyclopædia Britannica Online, online at:http://en.wikipedia.org/wiki/Encyclop%C3%A6dia_Britannica_Online
(Accessed 04 november 2014)
Britannica (n. d.) Brands and Divisions, online at: http://corporate.britannica.com/about/brands/
(Accessed 04 November 2014)
History of Wikipedia (2014), online at:http://en.wikipedia.org/wiki/History_of_Wikipedia
(Accessed 04 November 2014)

Britannica.com
Wikipedia
Britannica.com
Wikipedia
Wikipedia
Britannica.com
Wikipedia
People
Full transcript