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BlueOceanStrategyBlueOceanStrategyContentsBlueOceanVs.RedOceanStrategyBlueOceanStrategyToolsStrategyCanvasandFourActionFrameworkSixPrinciplesofBlueOceanStrategyFormulatingBlueOceanStrategyExecutingBlueOceanStrategyContentsBlueOceanVs.RedOceBlueOceanVs.RedOceanStrategyBlueOceanVs.RedOceanStratBlueOceanvs.RedOceanStrategyCreateuncontestedmarketspaceMakethecompetitionirrelevantCreateandcapturenewdemandCompeteinexistingmarketspaceBeatthecompetitionExploitexistingdemandBlueOceanStrategyRedOceanStrategyBlueOceanvs.RedOceanStratBlueOceanvs.RedOceanStrategyBreakthevalue-costtradeoffAlignthewholesystemofafirm’sactivitieswithitsstrategicchoiceofdifferentiationand
lowcostMakethevalue-costtradeoffAlignthewholesystemofafirm’sactivitieswithitsstrategicchoiceofdifferentiationorlowcostBlueOceanStrategyRedOceanStrategyBlueOceanvs.RedOceanStratBlueOceanStrategyToolsStrategyCanvasAdiagnostictoolforbuildingacompellingblueoceanstrategyItcapturesthecurrentstateofplayintheknownmarketspaceAllowyoutounderstand:wherethecompetitioniscurrentlyinvestingthefactorstheindustrycurrentlycompetesoninproduct,serviceanddeliverywhatcustomersreceivefromexistingcompetitiveofferingsonthemarketBlueOceanStrategyToolsStratFourActionFrameworkEliminateReduceRaiseCreateFourActionFrameworkEliminateFourActionFrameworkEliminateReduceRaiseCreateWhichofthefactorsthattheindustrytakesforgrantedshouldbeeliminated?Whichfactorsshouldbereducedwellbelowtheindustry’sstandard?Whichfactorsshouldbecreatedthattheindustryhasneveroffered?Whichfactorsshouldberaisedwellabovetheindustry’sstandard?FourActionFrameworkEliminateFourActionFrameworkTheCaseofCirqueduSoleil(ACircusCompany)ThemeRefinedenvironmentMultipleproductionsArtisticmusicanddanceEliminateReduceRaiseCreateStarperformersAnimalshowsAisleconcessionsalesMultipleshowarenasFunandhumorThrillanddangerUniquevenueFourActionFrameworkThemeElimSixPrinciplesofBlueOceanStrategyReconstructmarketboundariesFocusonthebigpicture,notthenumbersReachbeyondexistingdemandGetthestrategicsequencerightOvercomekeyorganizationalhurdlesBuildexecutionintostrategyFormulationPrinciplesExecutionPrinciplesSixPrinciplesofBlueOceanSFormulatingBlueOceanStrategyFormulating1.ReconstructMarketBoundariesFocusonrivalswithinindustryFocusesoncompetitivepositionwithinstrategicgroupFocusesonbetterservingthebuyergroupHead-to-HeadStrategyBlueOceanStrategyLooksacrossalternativeindustriesLooksacrossstrategicgroupwithinindustryRedefinestheindustrybuyergroup1.ReconstructMarketBoundari1.ReconstructMarketBoundariesFocusesonmaximizingthevalueofproductorserviceofferingswithintheboundsofitsindustryFocusesonadaptingtoexternaltrendsastheyoccurHead-to-HeadStrategyBlueOceanStrategyLooksacrosstocomplementaryproductandserviceofferingsParticipatesinshapingexternaltrendsovertime1.ReconstructMarketBoundari2.FocusontheBigPicture,nottheNumbersFocusontheBigPicture,nottheNumbersTheFourStepsofVisualizingStrategyVisualAwakeningVisualExplorationVisualStrategyFairVisualCommunication2.FocusontheBigPicture,n2.FocusontheBigPicture,nottheNumbersVisualAwakeningCompareyourbusinesswithyourcompetitors’bydrawingyour“asis”strategycanvasSeewhereyourstrategyneedstochange2.FocusontheBigPicture,n2.FocusontheBigPicture,nottheNumbersVisualExplorationGotothefieldtoexplorethesixpathstocreatingblueoceansObservethedistinctiveadvantagesofalternativeproductsandservicesSeewhichfactorsyoushouldeliminate,create,orchange2.FocusontheBigPicture,n2.FocusontheBigPicture,nottheNumbersVisualStrategyFairDrawyour“tobe”strategycanvasbasedoninsightsfromfieldobservationsGetfeedbackonalternativestrategycanvasesfromcustomers,competitors’customers,andnoncustomersUsefeedbacktobuildthebest“tobe”futurestrategy2.FocusontheBigPicture,n2.FocusontheBigPicture,nottheNumbersVisualCommunicationDistributeyourbefore-and-afterstrategicprofilesononepageforeasycomparisonSupportonlythoseprojectsandoperationalmovesthatallowyourcompanytoclosethegaptoactualizethenewstrategy2.FocusontheBigPicture,n3.ReachBeyondExistingDemandTheThreeTierofNon-customersFirsttier:“Soontobe”non-customerswhoaretheedgeofyourmarket,waitingtojumpshipSecondtier:“Refusing”non-customerswhoconsciouslychooseagainstyourmarketThirdtier:“Unexplored”non-customerswhoareinmarketsdistantfromyours3.ReachBeyondExistingDeman4.GetTheStrategicSequenceRightTheSequenceofBlueOceanStrategyBuyerutilityIsthereexceptionalbuyerutilityinyourbusinessidea?PriceIsyourpriceeasilyaccessibletothemassofbuyers?CostCanyouattainyourcosttargettoprofitatyourstrategicprice?AdoptionWhataretheadoptionhurdlesinactualizingyourbusinessidea?
Acommerciallyviableblueoceanidea4.GetTheStrategicSequenceExecutingBlueOceanStrategyExecuting5.OvercomeKeyOrganizationalHurdlesOvercomeKeyOrganizationalHurdlesCognitiveHurdleMotivationalHurdleResourceHurdlePoliticalHurdle5.OvercomeKeyOrganizational5.OvercomeKeyOrganizationalHurdlesCognitiveHurdle(statusquo)ResourceHurdleRidethe“ElectricSewer”MeetwithDisgruntledCustomersRedistributeresourcestoyourhotspotsRedirectresourcesfromyourcoldspotsEngageinhorsetrading5.OvercomeKeyOrganizational5.OvercomeKeyOrganizationalHurdlesMotivationalHurdlePoliticalHurdleZoominonKingpins(keyinfluencers)PlacekingpinsonafishbowlAtomizetogettheorganizationtochangeitselfSecureaconsigliereonyourtopmanagementteamLeverageyourangelsandsilenceyourdevils5.OvercomeKeyOrganizational5.BuildExecutionIntoStrategyFairProcessofStrategyStrategyFormulationProcessFairProcess–Engagement,Explanation,ExpectationclarityAttitudesTrustandCommitment–“Ifeelmyopinioncounts”BehaviorVoluntaryCooperation–“I’llgobeyondthecallofduty”StrategyExecutionExceedsExpectation–selfinitiated5.BuildExecutionIntoStrateSourceofReferenceW.ChanKimandRenéeMauborgne,BlueOceanStrategy,HBSPublicationSourceofReferenceW.ChanKimEndofMaterialEndofMaterialBlueOceanStrategyBlueOceanStrategyContentsBlueOceanVs.RedOceanStrategyBlueOceanStrategyToolsStrategyCanvasandFourActionFrameworkSixPrinciplesofBlueOceanStrategyFormulatingBlueOceanStrategyExecutingBlueOceanStrategyContentsBlueOceanVs.RedOceBlueOceanVs.RedOceanStrategyBlueOceanVs.RedOceanStratBlueOceanvs.RedOceanStrategyCreateuncontestedmarketspaceMakethecompetitionirrelevantCreateandcapturenewdemandCompeteinexistingmarketspaceBeatthecompetitionExploitexistingdemandBlueOceanStrategyRedOceanStrategyBlueOceanvs.RedOceanStratBlueOceanvs.RedOceanStrategyBreakthevalue-costtradeoffAlignthewholesystemofafirm’sactivitieswithitsstrategicchoiceofdifferentiationand
lowcostMakethevalue-costtradeoffAlignthewholesystemofafirm’sactivitieswithitsstrategicchoiceofdifferentiationorlowcostBlueOceanStrategyRedOceanStrategyBlueOceanvs.RedOceanStratBlueOceanStrategyToolsStrategyCanvasAdiagnostictoolforbuildingacompellingblueoceanstrategyItcapturesthecurrentstateofplayintheknownmarketspaceAllowyoutounderstand:wherethecompetitioniscurrentlyinvestingthefactorstheindustrycurrentlycompetesoninproduct,serviceanddeliverywhatcustomersreceivefromexistingcompetitiveofferingsonthemarketBlueOceanStrategyToolsStratFourActionFrameworkEliminateReduceRaiseCreateFourActionFrameworkEliminateFourActionFrameworkEliminateReduceRaiseCreateWhichofthefactorsthattheindustrytakesforgrantedshouldbeeliminated?Whichfactorsshouldbereducedwellbelowtheindustry’sstandard?Whichfactorsshouldbecreatedthattheindustryhasneveroffered?Whichfactorsshouldberaisedwellabovetheindustry’sstandard?FourActionFrameworkEliminateFourActionFrameworkTheCaseofCirqueduSoleil(ACircusCompany)ThemeRefinedenvironmentMultipleproductionsArtisticmusicanddanceEliminateReduceRaiseCreateStarperformersAnimalshowsAisleconcessionsalesMultipleshowarenasFunandhumorThrillanddangerUniquevenueFourActionFrameworkThemeElimSixPrinciplesofBlueOceanStrategyReconstructmarketboundariesFocusonthebigpicture,notthenumbersReachbeyondexistingdemandGetthestrategicsequencerightOvercomekeyorganizationalhurdlesBuildexecutionintostrategyFormulationPrinciplesExecutionPrinciplesSixPrinciplesofBlueOceanSFormulatingBlueOceanStrategyFormulating1.ReconstructMarketBoundariesFocusonrivalswithinindustryFocusesoncompetitivepositionwithinstrategicgroupFocusesonbetterservingthebuyergroupHead-to-HeadStrategyBlueOceanStrategyLooksacrossalternativeindustriesLooksacrossstrategicgroupwithinindustryRedefinestheindustrybuyergroup1.ReconstructMarketBoundari1.ReconstructMarketBoundariesFocusesonmaximizingthevalueofproductorserviceofferingswithintheboundsofitsindustryFocusesonadaptingtoexternaltrendsastheyoccurHead-to-HeadStrategyBlueOceanStrategyLooksacrosstocomplementaryproductandserviceofferingsParticipatesinshapingexternaltrendsovertime1.ReconstructMarketBoundari2.FocusontheBigPicture,nottheNumbersFocusontheBigPicture,nottheNumbersTheFourStepsofVisualizingStrategyVisualAwakeningVisualExplorationVisualStrategyFairVisualCommunication2.FocusontheBigPicture,n2.FocusontheBigPicture,nottheNumbersVisualAwakeningCompareyourbusinesswithyourcompetitors’bydrawingyour“asis”strategycanvasSeewhereyourstrategyneedstochange2.FocusontheBigPicture,n2.FocusontheBigPicture,nottheNumbersVisualExplorationGotothefieldtoexplorethesixpathstocreatingblueoceansObservethedistinctiveadvantagesofalternativeproductsandservicesSeewhichfactorsyoushouldeliminate,create,orchange2.FocusontheBigPicture,n2.FocusontheBigPicture,nottheNumbersVisualStrategyFairDrawyour“tobe”strategycanvasbasedoninsightsfromfieldobservationsGetfeedbackonalternativestrategycanvasesfromcustomers,competitors’customers,andnoncustomersUsefeedbacktobuildthebest“tobe”futurestrategy2.FocusontheBigPicture,n2.FocusontheBigPicture,nottheNumbersVisualCommunicationDistributeyourbefore-and-afterstrategicprofilesononepageforeasycomparisonSupportonlythoseprojectsandoperationalmovesthatallowyourcompanytoclosethegaptoactualizethenewstrategy2.FocusontheBigPicture,n3.ReachBeyondExistingDemandTheThreeTierofNon-customersFirsttier:“Soontobe”non-customerswhoaretheedgeofyourmarket,waitingtojumpshipSecondtier:“Refusing”non-customerswhoconsciouslychooseagainstyourmarketThirdtier:“Unexplored”non-customerswhoareinmarketsdistantfromyours3.ReachBeyondExistingDeman4.GetTheStrategicSequenceRightTheSequenceofBlueOceanStrategyBuyerutilityIsthereexceptionalbuyerutilityinyourbusinessidea?PriceIsyourpriceeasilyaccessibletothemassofbuyers?CostCanyouattainyourcosttargettoprofitatyourstrategicprice?AdoptionWhataretheadoptionhurdlesinactualizingyourbusinessidea?
Acommerciallyviableblueoceanidea4.GetTh
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