Karthik Krishnamoorthy BUS 240 - eCommerce

1. Karthik Krishnamoorthy BUS 240 - eCommerce

3. Red Ocean Vs Blue Ocean

4. Creating Blue Ocean Value Innovation • Company’s cost act favorably for both innovators and buyers • Cost savings occur by eliminating and reducing factors an industry competes • Buyer value is provided by never before offered products • Cost is reduced further as scale of economy kicks in VI COST VI VALUE

5. Creating Blue OceanTools • Strategy Canvas • diagnostic and action framework for building a compelling strategy • X-Y Axis, where X represents factors and Y represents company position • E.g Yellow Tail Wine

6. Creating Blue OceanTools • Four Action Framework • Eliminate, Reduce,Raise and Create

7. Creating Blue OceanTools • ELIMINATE-REDUCE-RAISE-CREATE GRID • E.g Yellow Tail Wine

8. Creating Blue OceanThree Characteristics For a good strategy • Focus - on the important areas and not on every single factor • Divergence - away from the competitors offerings • Tagline - has a simple easy to communicate

9. Creating Blue OceanSix Principles Formulation Principles Reconstruct Market Boundaries … overcome believes. Reach beyond existing Demand … go for uncontested space. Get the strategic sequence right … value [innovation] first.

10. Creating Blue OceanSix Principles Buyer utility Is there exceptional buyer utility in your business idea? No  Rethink YES Price Is your price easily accessible to the mass of buyers? No  Rethink YES Cost Can you attain your cost target to profit at your strategic price? No  Rethink YES Adoption What are the adoption hurdles in actualizing your business idea? Are you addressing them up front? No  Rethink YES

11. Creating Blue OceanSix Principles Execution Principles • Overcome key organizational hurdles • Cognitive, resource and political hurdles • Build execution into strategy • Fair process strategy formulation Examples • Yellow Tail • Southwest • Cirque du Soleil • Home Depot

12. Thank you Recommended !