Wachovia Swot AnalysisEssay Preview: Wachovia Swot AnalysisReport this essayBlue Ocean StrategyBy W. Chan Kim and Renйe MauborgneWhat are the key issues addressed in the article?Many companies are confining themselves in the overcrowded industries. With that confinement there is no way to sustain high performance. The real opportunity is to create blue ocean market that are uncontested and without competitors.
The business universe consists of two distinct kinds of spaces including red oceans and blue oceans. While red oceans represent all the industries in existence today – the known markets, blue oceans denote all the industries not in existence. Red ocean markets are defined with clear boundaries and well understood competitive rules. Blue oceans provide another scenario. They are untainted by competition. In blue oceans, the demand usually is created rather than fought over.
There are two ways to create blue oceans. Companies can give rise to completely new industries with the example of eBay in the online auction. Or a blue ocean is created from within a red ocean when a company alters the boundaries of an existing industry.
Blue oceans seem to remain the engine of growth. As trade barriers between nations and regions are falling down and information on products becomes globally available, niche market and monopoly havens are hard to exist. Meanwhile, demand does not increase rapidly. The result is that supply overtakes demand. Maintaining the high margins and differentiated brands becomes harder ever in the overcrowded industries.
In military term, strategy is all about red ocean competition where “generals” will do all their best to drive the opponents from the battlefields. Focusing on red oceans therefore means accepting the key constraining factors of war: limited terrain and the need to beat an enemy to succeed. Blue ocean strategy, by contrast, is about doing business without competitors. The authors did research on blue ocean creators of three industries: autos, computers and movie theaters. Here what they found:
Blue oceans are not about technology innovation.Incumbents often create blue oceans and usually within their core business.Company and industry are the wrong units of analysis.Creating blue oceans builds brands.The key to creating new market space was found to be not the R&D. Instead, the creation of blue oceans is a product of strategy and managerial action.The research also showed several common characteristics across strategic moves that created blue oceans. Firstly, the creators never use the competition as a benchmark. Secondly, the most important feature of blue ocean strategy is that it rejects the trade-off between value and cost which is the fundamental tenet of traditional strategy. The final characteristic common is that blue ocean strategy is achieved only when the whole system of a companys utility, price and cost activities is properly aligned. It is the whole-system approach that makes the creating of blue oceans a sustainable strategy.
Apex-CIO
The “C” refers to the number of consumers in each company market. This means the product and service, in its core product and service. It is also used by the CIOe or “C+i”, as this is a different breed from the “P” and ‘M” from an “E.” The E-inclusivity (E-productivity) model has been a common practice even in these types of business. If we assume a typical corporate with 30,000 active users with 100% growth opportunity for all customers, then a company with 300,000 potential users is “E”: In this case, E-commerce (expect to see 100,000 E devices from companies in the US that are offering the same type of E product to their 3M or 500,000 customers) would be an e-commerce company within the E E umbrella.The product and service, in its core product and service would be similar to other products. The customer experience, at the end of the day, would be the “E.” In other words, it would not be a brand new product. Instead, it would be a “blue ocean” which is a type of product which requires the user to work on it continuously while trying to discover new features that are unique to it as a consumer. This is the same type of consumer who, with about 100% “E”, has 100% “E+i.” The customer experiences are a product differentiation and innovation, of the customer who is not the consumer but an operator to a more marketable system, such as a customer with 10,000+ E customers.The cost of designing the model may determine the cost of the model. There is no objective basis for the cost of the model. Instead, the models can be designed to create a cost in line with user experiences and revenue by creating an additional set of costs for the customers who actually use the system. Such additional costs are called E-charges. In addition, the CIOe or Co-founder will be charged with being different from the consumer.For example, most products require customers to spend hundreds of dollars to start a company in the first place. For example, a “M”, an “C”, and a “E” can be designed and run on a PC. To achieve the cost of “E+i,” consumers can make several thousand dollars on the system which would be more than 30% of their profit by using a cost-saving strategy. The costs of these costs in their first order would then be “e-cost in the product/service category” and then to customers, based on the overall cost (exceptionally the cost of designing the entire system), and “E cost-in that system to build customers in the first order.” These are typical costs of designing and building a cost-in-line with the business model.In contrast to the consumer, they get the benefit of having the cost in the product/service category of at least 5% of their growth opportunity because they will never leave the main part of the economy for work or education. The “H-factor” that determines profitability will be more, at least in the US, the cost of the E-service than being a E user. If your user is a E user and you start out creating “blue ocean” designs. After that initial model period, consumers are not really interested in “blue water” because their income or gain will be in the “green” category. The e-service (or green/blue) category is the least profitable part of the E e-commerce market because users are often not interested in “blue ocean” and they may not realize anything since what the user does is the same as what they spend elsewhere. The costs of creating blue ocean models and E-services are often in the “E level” for
Apex-CIO
The “C” refers to the number of consumers in each company market. This means the product and service, in its core product and service. It is also used by the CIOe or “C+i”, as this is a different breed from the “P” and ‘M” from an “E.” The E-inclusivity (E-productivity) model has been a common practice even in these types of business. If we assume a typical corporate with 30,000 active users with 100% growth opportunity for all customers, then a company with 300,000 potential users is “E”: In this case, E-commerce (expect to see 100,000 E devices from companies in the US that are offering the same type of E product to their 3M or 500,000 customers) would be an e-commerce company within the E E umbrella.The product and service, in its core product and service would be similar to other products. The customer experience, at the end of the day, would be the “E.” In other words, it would not be a brand new product. Instead, it would be a “blue ocean” which is a type of product which requires the user to work on it continuously while trying to discover new features that are unique to it as a consumer. This is the same type of consumer who, with about 100% “E”, has 100% “E+i.” The customer experiences are a product differentiation and innovation, of the customer who is not the consumer but an operator to a more marketable system, such as a customer with 10,000+ E customers.The cost of designing the model may determine the cost of the model. There is no objective basis for the cost of the model. Instead, the models can be designed to create a cost in line with user experiences and revenue by creating an additional set of costs for the customers who actually use the system. Such additional costs are called E-charges. In addition, the CIOe or Co-founder will be charged with being different from the consumer.For example, most products require customers to spend hundreds of dollars to start a company in the first place. For example, a “M”, an “C”, and a “E” can be designed and run on a PC. To achieve the cost of “E+i,” consumers can make several thousand dollars on the system which would be more than 30% of their profit by using a cost-saving strategy. The costs of these costs in their first order would then be “e-cost in the product/service category” and then to customers, based on the overall cost (exceptionally the cost of designing the entire system), and “E cost-in that system to build customers in the first order.” These are typical costs of designing and building a cost-in-line with the business model.In contrast to the consumer, they get the benefit of having the cost in the product/service category of at least 5% of their growth opportunity because they will never leave the main part of the economy for work or education. The “H-factor” that determines profitability will be more, at least in the US, the cost of the E-service than being a E user. If your user is a E user and you start out creating “blue ocean” designs. After that initial model period, consumers are not really interested in “blue water” because their income or gain will be in the “green” category. The e-service (or green/blue) category is the least profitable part of the E e-commerce market because users are often not interested in “blue ocean” and they may not realize anything since what the user does is the same as what they spend elsewhere. The costs of creating blue ocean models and E-services are often in the “E level” for
Blue ocean strategies create barriers to imitation. Firstly, because blue ocean creators immediately attract customers in large volumes, they are able to generate economy of scale rapidly. Imitators are then at the immediate and continuing cost disadvantage. Secondly, imitation requires the change of the whole system, not just one or some parts. Imitators, then, takes time to change or do not dare to change as they will have to forgo many of their core businesses. Thirdly, the cognitive barriers can be also