group 4 raul guerrero jose medina laura randall melissa dunlop mona shafer alma pena
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Chapter 3. RECONSTRUCT MARKET BOUNDARIES. Six Paths Framework. Group 4 Raul Guerrero Jose Medina Laura Randall Melissa Dunlop Mona Shafer Alma Pena. Breaking Away From Competition. Look systematically across boundaries. Six Paths Framework. Across Alternative Industries - PowerPoint PPT PresentationTRANSCRIPT
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SGroup 4Raul GuerreroJose MedinaLaura RandallMelissa DunlopMona ShaferAlma Pena
RECONSTRUCT MARKET BOUNDARIES
Six Paths Framework
Chapter 3
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Breaking Away From Competition
Look systematically across boundaries
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Six Paths Framework
Across Alternative Industries
Across Strategic Groups
Across Buyer Groups
Across Complimentary Products and Service Offerings
Across the Functional-Emotional Orientation of an Industry
Across Time
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Path 1: Look Across Alternative Industries
Substitutes
Different Form Same Function
Alternatives Different Form Different Function Same Purpose
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Creating Blue Oceans
NetJets Fractional Jet Ownership
NTT DoCoMo’s i-mode Wireless Transmission of Voice, Text, Data, and Pictures
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Path 2:Looking Across Strategic Groups
Companies within a given industry that use similar strategy
Compete on price and performance
Trade up or down from one group to another
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Creating Blue Oceans
Curves Combining the industries of traditional health clubs and
home exercise programs
Lexus Combine luxury of higher end cars with lower priced
vehicles
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Path 3: Look Across the Chain of Buyers
Many Industries can create a blue ocean by asking; What is the chain of buyers in this industry? Which buyer group does this industry typically focus on? If the buyer group is shifted how could new value be unlocked?
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Target Buyers Vs. Chain of Buyers
Companies tend to focus on the target buyer
In reality there is a chain of “buyers” Purchaser may be different then actual user The direct buyer and the indirect buyer may have very different
values
Challenging which buyer group to target can create a new blue ocean
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Path 3: Look Across the Chain of Buyers
Many Industries can create a blue ocean by asking What is the chain of buyers in this industry? Which buyer group does this industry typically focus on? If the buyer group is shifted how could new value be unlocked?
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Path 4: Look Across Complementary Product and Service offer
Before, During and After the Storm
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Total Solution
What buyers seek when they choose a product or service?
What happens before, during, and after your product is used?
IKEA
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NABI
Pain points in transit bus industry Designs outdated Late delivery times Low quality Penny pinching pricing approach in industry.
Created a value curve that radically differed from the industry's average curve. (Low Life-Cycle Costs) o Named one of the 30 most successful companies in the world by
Economist Intelligence Unit in 2002 Has Captured 20% of the US Market since 1993
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Phillips Electronics
In teakettle’s, the major pain point in customers’ total solution was the lime scale found in tap water
Opportunity in the complementary product of water: Created a kettle having a mouth filter that
effectively captured the lime scale as water poured
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Creating Blue Oceans
Barnes & Noble
Virgin Entertainment’s megastores
Zeneca’s Salick cancer centers
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Path 5: Look Across Functional or Emotional Appeal to Buyers
Industry converge over scope of its products and services
Also on one of two possible bases of appeal Functional appeal Emotional appeal
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Functional Appeal
Industry competes on price and function largely on calculations of utility
Appeal is rational
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Emotional Appeal
Industry competes largely on feelings
Appeal is emotional
Offer many extras that add price without increasing functionality
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Path 5: Look Across Functional or Emotional Appeal to Buyers
Companies’ behavior affects buyers’ expectations in a reinforcing cycle Functionally oriented become more functionally
oriented Emotionally oriented become more emotionally
oriented
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Path 5: Look Across Functional or Emotional Appeal to Buyers
Challenge the functional-emotional orientation of the industry
Find new market space
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Path 6: Look Across TimeAssessing Trends Across Time
Three Principles Decisive Irreversible Have a clear trajectory
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Identifying a Trend
When a trend is identified, working from the inside out and taking it to its logical conclusion could take a firm into a blue ocean.
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Three Takeaways
The first principle of blue ocean strategy is to reconstruct market boundaries by looking systematically across different boundaries to break from the competition and create blue oceans.
By looking at different angles, such as buyers, products, and services a company can expand its values and break into a blue ocean.
Through the perception of time, companies can evaluate the emotional and functional appeal from the buyer’s perspective and create ways to diversify your market space.
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