During our meeting we explored popular business strategies and how to apply them. But we went deeper, emphasizing the importance of developing an unique strategy to fit your desired industry. We feel it is important to mix and match aspects to working business strategies to truly make it your own. We created a 10 slide presentation deeper exploring the Blue Ocean Strategy as other popular ones. Please check out the presentation to get a full understanding of what we covered as we this is more of a summary.
Presentation Link: https://docs.google.com/presentation/d/1IGOO_WA_ItqgD83r1Q4I6i78k0tbSKelxiLd0MwI_7Q/edit?usp=sharing
The Blue Ocean Strategy consists of two oceans:
Red Oceans: The current market space. A lot of competition, creating a bloody ocean where tons of businesses fight over the same consumers
Blue Oceans: The unknown market space. Have little to no competition, meaning good opportunity for growth and good profits. Creating new demand and drawing in a lot of consumers.
It is important to distinguish what aspects of your product fall into the Blue or Red Ocean. So we recommend to make a table to help visualize what aspects make your product disruptive to the industry. Making a table also allows you to quickly see how innovative/profitable your idea is before getting to invested in it. The table can also allow you to see what possible areas you can expand to in the future to lean more to the Blue Ocean as opposed to the Red Ocean.
To help you guys visualize how the Blue Ocean Strategy is applied in the real world we found a few companies that actually use it! McDonald's is a great example, reimagining the way fast food is distributed and made. Through placing the different kitchen supplies is an efficient order and adopting an assembly-line-like method to put the food together. But as time went on the Founder realized that McDonald's can make more money if it focused on the real-estate aspect rather than just the food. This is how McDonald's dominated the market and made other chains follow in its tracks. We recommend you guys watch "The Founder" on Netflix, as it is a fun/informative documentary that helps the audience understand what took place in the creation of McDonald's.
Another company that also uses the Blue Ocean Strategy is Nintendo with their game consoles. They take big risks with each iteration and sometimes it flops, like the WiiU, and sometimes it breaks the market, like the switch and Wii. They always try to think outside the box with their ideas ideas which allows them to be in their own market rather than follow Sony and Microsoft (Both being almost homogenous). Big risks can provide huge rewards, but also major losses. But without taking risks an inevitable decline in the creatively will ultimately lead to the demise of the company.
We discussed different business strategies to implement based on the market your product is in. It is important to try to blend some of these together to create optimal success when trying to keep customer retention.
When looking at the slides we would like you to try to find a blend of ideas that suite your needs/interests as well as your industry. Balancing different strategies together allows for innovation in the field, so we recommend to build-off of past strategies to possibly create a more successful business strategy!
Great Job A-Z! See you all next week!!!
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