Blue Ocean Strategy is to create no competition for market space, beyond the scope of the concept of competition, open up new market demand, open up new market space, through value innovation to gain new space. The Red Sea is a strategic means of competition in the existing market space, or is made in promoting price competition in price, they are fighting for efficiency, however, increase the cost of sales or reduced profits.
Blue Ocean Strategy made a total of six principles, the development of four strategic principles: to restore market boundaries, focus on global rather than digital, beyond existing demand, order follow reasonable strategy, and the implementation of the principle of two strategies: the key to overcome organizational barriers, the implementation of the strategy built part of the strategy.
One of the principles of Blue Ocean Strategy fold: to restore market boundaries
From head-on competition to create a blue ocean, using the six path to restore market boundaries.
1. Industry: Industry choose him over to see the market
Hung Hai Siwei: parrot delimitation for the industry and become one of the best bent.
Blue Ocean view: an enterprise not only to compete with its industrial rivals, but also with his selection (Alternatives) industry rival products or services competition.
2. Strategy Group: across different strategies within the industry group to see the market
Hung Hai Siwei: restricted Strategy Group concept widely accepted (for example, luxury cars, economy cars, family cars), and in efforts topped Group.
Blue Ocean views: Breakthrough narrow field of view, figuring out what factors determine customer choices, such as selecting high-grade and low-grade consumer goods.
3 buyer groups: redefining the industry buyer groups
Hung Hai Siwei: only concerned with a single buyer, does not concern the end user.
Blue Ocean views: the buyer is a buyer, user and influence buyer who together constitute the chain.
Example: Novo Nordisk is a manufacturer of insulin, insulin injection pens and integration to create NovoLet injection device, easy to carry patients to use.
4, the product or service areas: complementary products and services across the watch market
Hung Hai Siwei: range of goods and services identical manner delimitation.
Blue Ocean views: complementary product or service contains Untapped demand, a simple method is to analyze the customer before using the product, during, and after what are needed.
5, features emotional guidance: for industry across functions and emotional guidance seller
Hung Hai Siwei: accept the existing industry-curable functional emotional guidance.
Blue Ocean view: market research industry feedback is often the result of education, to challenge existing business functions and emotional guidance can find new space, if the emotional level of competition, and which elements make it functional Can be removed? vice versa.
6, time: across time to participate in shaping external trends
Hung Hai Siwei: developing strategies only concerned with the threat of competition at this stage.
Blue Ocean view: insight into the technical and policy trends from a business perspective on how to change the value of customers acquired, how it affects the business model.
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