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Blue Ocean Strategy in Small Business

1. The chapter introduces the strategy canvas and four actions framework to help companies break out of red oceans and create blue oceans of uncontested market space. 2. It discusses that most wineries were not differentiating themselves, making it hard to open new markets. The four actions framework of reduce, eliminate, create, and raise was developed to help companies create a new value curve rather than just compete on price or differentiation. 3. The chapter also covers the eliminate-reduce-raise-create grid and key characteristics of a good strategy including focus, divergence from the competition, and a compelling tagline.

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Mir Asfandyar Hoth
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12 views3 pages

Blue Ocean Strategy in Small Business

1. The chapter introduces the strategy canvas and four actions framework to help companies break out of red oceans and create blue oceans of uncontested market space. 2. It discusses that most wineries were not differentiating themselves, making it hard to open new markets. The four actions framework of reduce, eliminate, create, and raise was developed to help companies create a new value curve rather than just compete on price or differentiation. 3. The chapter also covers the eliminate-reduce-raise-create grid and key characteristics of a good strategy including focus, divergence from the competition, and a compelling tagline.

Uploaded by

Mir Asfandyar Hoth
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd

MGT 415 Small Business Capstone: Entrepreneurial Approach

Round Table Discussion Assignment


~Week__3_Date:_4/18/19__

Student Name: __________Ray Giangiacomo______________

*Topic: : Chapter _2_Title_Analytical Tools and Frameworks


Category Points Points
Available Earned
Summary /Background of Topic : 5
Understanding and able to help others
understand
Chapter 2 opens telling about how wine sales in
the united states faced a large amount of
competition where only 25 percent of all Wine
sold was from the United States. Over 1600
domestic wineries sold 25 pervent of the total
wine sales in the United States. This posed a
question, how does one break out of the Red
ocean and make competition irrevlevent? The
chapter then introduces the Strategy canvas. It
explains that it is both a diagnostica and an
action framework for building a Blue Ocean
Strategy. This vhapter then explains how a
company is able to produce by giving the sae
winery example. None of them are doing too
much to differentiate themselves which makes it
nearly impossible for them to open a more
uncontested market. The Chapter then discuess
the four actions framework , which are Reduce,
Eliminate, Create, Raise. This was created to
break the trade-off between differentiation and
low cost. But it was also created to create a new
value curve. It explains by asking simple
question, that a company is able to design a
completely different look to a company. This
could include eliminating competion, or seeing
what is over designed and could be simpliefied.
Next, chaper 2 speaks about a third tool called
the Eliminate-Reduce-Raise- Create grid. This
tool forces companies not only to ask questions
but to also act. Lastly, Chapter 2 discusses the
three characteristics of a good strategy. These
characteristics are, Focus, Divergence, and a
Compelling tagline. Focus is when a company
wmphsizes on a few specific details that make
them great. Divergence is when a company has
to be reactive to their strategy. Finally a unique
tagline is essential because that is what drive
customers to use your product or service
without one or with an ineffective one a
company is at risk of losing clinetel.
Three important takeaways for class to 15
remember about topic 1.
[Link] key takeawy I learned from this chapter
was that for a company to be strong and have a
trajectory of growth, they should not try to
outcompete with their competion because it
might slightly increase in sales but it wouldn’t
open an uncontested market
2. the next key takeway from this chapter was
the four action framework and how a company
need to really see how they can improve whether
it being addition or even subtraction of a
product. This could venturing into unfamilier
territory and starting a completely new industry
all together
3. the final key takeaway I learned was that the
tradeoff between differentiation and low cost are
two ways a company could be different but with
every company in a market changing prices,
they are lowering the value and are competing
with each other for market with a very limited
size.

1 (or more) Powerful Question(s) for Class 10


What if a company doesn’t choose to change and
would rather compete until they eventual gain
control of the majority of the market? What
would happen?

Total Points/Grade: 30
Comments from instructor:

*Use one sheet per chapter and submit all at once,


please!

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