Sunday, October 19, 2008

Renee Mauborgne came to India to attend the SAS Premier Business Leadership Series.

She categorically stated that Indian Premier League bought the BCCI unquestionable success in the T-20 cricket, drawing as many as 18 million viewers.

 She said in an interview with Indian Management”Tata Motors’s Nano is probably the Blue Ocean that is getting the most global press and curiosity. I know the car is not out yet and with the rising input cost whether it can hit its price target is some thing we have to watch for.  But I think this is very exciting experiment to create a car for people who could never have cars and at such a challenging price.”

 As in the case of Blue Ocean Strategy demand is created rather than fought over. There are ample opportunity for growth that is both profitable and rapid. Here competition is irrelevant because the rules of the game are waiting to be set. Blue Ocean is an analogy to describe the wider, deeper potential of market space that is not yet explored.

 The Blue Ocean Strategy is basically a four step strategy. At the core centre is the four-step strategy visualization process any organization can approach and apply.

The first step is the Visual Awakening. At this particular stage the business executives are asked to draw their 'As Is' strategy map - a visual representation of their company's strategy vis-à-vis the competition. This brings home the need for change. It serves as a forceful wake-up call for companies to challenge their existing strategies.

The second step is called the Visual Exploration. Here in this step the managers go into the market field to explore the new market space creation. Here managers observe the distinct differences of alternative products and services and takes decisions which factors should be eliminated, created or changed in the offerings to the customers which will give value addition to the customers.

The third step is the Visual Strategy Fair. Here executives begin to draw their 'To Be' Strategy map based on insights from the market exploration observations and test these ideas with customers, non-customers, and lost customers.

The fourth and final step is 'To Be' strategy canvas; the last step is to communicate it in a way that can be easily understood by any employee of the organization.


No comments: