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Answer: Blue Ocean is a strategy where employees picking up their own designation
from the job title basket or make their own job descriptions or owning their learning
and development budget.
A blue ocean strategy from the market or business perspective is conceptualized
around five things:
1: It creates uncontested market space.
2: It makes the competition irrelevant.
3: It helps create and capture new demand.
4: It breaks the value cost trade-off.
5: Aligns the entire system of firm’s activities in pursuit of differentiation and low
cost.
Answer: Blue Ocean Strategy is about pursuing what we call Value Innovation - the
simultaneous pursuit of differentiation and low cost. A company pursues Value
Innovation by aligning three propositions. First, value proposition (utility minus
price) by creating an offer that dramatically increases buyer utility at the right price
for the mass of the market; Second, profit proposition (price minus cost) by creating
a leap in value for the company itself by making tidy profits; Third, people
proposition by practicing fair process and tipping point leadership.”
Answer: RBV (Resource based view) model is followed in blue ocean strategy. The
blue ocean strategy is considered as RBV model because it deals with the man and its
strategy start by analyzing the human resource power of the organization.
5: What is the advantage and disadvantage of blue ocean strategy?
Advantage:
Able to give their best per formations.
Change to their existing business practices.
Politics often kick, economically they are strong.
Cost advantages.
Placing potential imitators at an ongoing cost.
Disadvantage:-
Head to head competitors.
Market is about to reconstruction.
It is difficult to estimate the number of people who will become ill or
go for a leave.
1: Formulation Principles:
Reconstruct market boundaries
Focus on the big picture, not the numbers
Reach beyond existing demand
Get the strategic sequence right
2: Formulation Risks:
Search Risk
Planning Risk
Scale Risk
Business Model Risk
3: Execution Principles
Overcome key organizational hurdles
Build execution into strategy
4: Execution Risks
Organizational Risk
Management Risk