Title: Blue Ocean Strategy: The Four Actions Framework
1 Blue Ocean StrategyThe Four Actions Framework Jason C. H. Chen Ph.D. Professor of MIS School of Business Administration Gonzaga University Spokane WA 99258 USA chen_at_jepson.gonza ga.edu 2 Red Ocean vs. Blue Ocean
It represents all the industries in existence today the known market
Industry boundaries are defined and accepted and the competitive rules of the game are known.
It represents all the industries not in existence today the unknown market
Is defined by untapped market space demand creation and the opportunity for highly profitable growth.
It is with unlimited business opportunities.
3 TYPES of COMPETITION 1. PURE COMPETITION 2. MONOPOLISTIC COMP. 3. OLIGOPOLY 4. MONOPOLY 4 The Profit and Growth Consequences of Creating Blue Oceans 86 14 Business launch 62 38 Revenue Impact 39 61 Profit Impact 5 Red Ocean Versus Blue Ocean Strategy Create uncontested market space Make the competition irrelevant Create and capture new demand Break the value-cost trade-off Align the whole system of a firms activities in pursuit of differentiation and low cost. Figure 1-3 (p. 18) 6 Grid Eliminate-Reduce-Raise-Create Eliminate Raise Reduce Create 7 The Four Actions Framework IS/IT Role Which factors should be ________ well below the industrys standard Which of the factors that the industry takes for granted should be _________ Which factors should be ________ that the industry has never offered A New Value Curve Which factors should be ______ well above the industrys standard 8 Eliminate-Reduce-Raise-Create GridThe Case of Southwest Airlines Eliminate Raise Meals Lounges Seating class choices Hub connectivity Friendly service Speed Reduce Create Frequent point-to-point departures Price versus average airlines 9 Winners vs. Losers
What separates winners from losers in creating (ultimate) strategic competitive advantage is neither bleeding-edge technology nor timing for market entry.
It is from value innovation
utility Value Innovation Firm price cost 10 Value Innovation Differentiation Low Cost. The Simultaneous Pursuit of and 11 Characteristics of a Good Strategy
Three characteristics of a good strategy
a firm does not diffuse its efforts across all key factors of competition
diverge from the other players
strategic profile is clear a fun and simple to follow (enjoy)
Describe (find) a business example and employ The Actions Framework to create/improve value innovation (i.e. strategic competitive advantage).
Both example description and model are due next class (using Word).
You will be expected to turn in an outline for the term paper a draft and a final version of the paper as indicated on the schedule. You should turn in a hardcopy and a softcopy for the final paper. Use Times New Roman 12 font double space page numbers and follow the structure (i.e. title page abstract with key words Introduction main body Conclusion References Tables and Figures) format (especially the references) as indicated on the sample papers on my web site. It is required to employ appropriate models learned from the class to help achieve the purpose of your paper. The total number of pages should be between 15 and 20 pages.
At least six references should be cited and three of them should be research-oriented (visit http//www.gonzaga.edu/Academics/Libraries/FoleyL ibrary/IndexesandDatabases/default.htm
PowerShow.com is a leading presentation/slideshow sharing website. Whether your application is business, how-to, education, medicine, school, church, sales, marketing, online training or just for fun, PowerShow.com is a great resource. And, best of all, most of its cool features are free and easy to use.
You can use PowerShow.com to find and download example online PowerPoint ppt presentations on just about any topic you can imagine so you can learn how to improve your own slides and presentations for free. Or use it to find and download high-quality how-to PowerPoint ppt presentations with illustrated or animated slides that will teach you how to do something new, also for free. Or use it to upload your own PowerPoint slides so you can share them with your teachers, class, students, bosses, employees, customers, potential investors or the world. Or use it to create really cool photo slideshows - with 2D and 3D transitions, animation, and your choice of music - that you can share with your Facebook friends or Google+ circles. That's all free as well!
For a small fee you can get the industry's best online privacy or publicly promote your presentations and slide shows with top rankings. But aside from that it's free. We'll even convert your presentations and slide shows into the universal Flash format with all their original multimedia glory, including animation, 2D and 3D transition effects, embedded music or other audio, or even video embedded in slides. All for free. Most of the presentations and slideshows on PowerShow.com are free to view, many are even free to download. (You can choose whether to allow people to download your original PowerPoint presentations and photo slideshows for a fee or free or not at all.) Check out PowerShow.com today - for FREE. There is truly something for everyone!