The study seeks to unravel the factors that affect construction workers' motivation and the corresponding effect of the identified motivational factors on workers' performance and overall productivity. Pursuing a Blue Ocean strategy can be a great choice for many companies, but it is not without risks or challenges. Compaq, for example, used existing technologies to create its ProSignia server, which gave buyers twice the file and print capability of the minicomputer at one-third the price. It is simply not enough to compare a few that succeeded in blue waters with some that stayed in red waters and failed. Potato batteries are designed for you! Instead of following the cliché notion of competitive advantage, the present day firms have gathered a new perspective of profit making i.
The authors suggest that fair process entails employee engagement, explanation to all affected parties, and expectation clarity. Last but not least importance, our entire team at Blue Ocean Strategy has the passion to see China to succeed in a platform beyond China. Red ocean consists of sharks with sharp teeth competitors. Hence, the term red oceans. We are based in the U. Pros: Can share and transfer resources that can be widely applied across business types. There are thousands of stories of companies that could not find profitable new markets.
There is no magic formula or silver bullet. But the logic is incomplete and even dangerous. What is missing is any ability to compare the rate of success however defined of companies that seek entirely new waters, versus those that seek to improve their competitive position where they are. On this point the book has nothing to say! While the number of private hospitals in Turkey was 271 in 2002, this number reached to 565 by the year 2016. The research is located in Tanjung Balai city, North Sumatra. Norton, he subsequently published The Balanced Scorecard: Measures that Drive Performance in 1992.
Unfortunately, to have a full picture, we should also know how many companies ventured into blue waters and failed the lower right , and how many stayed in their present market space but through superior execution, better asset management, smarter talent management, or some other steps were successful the upper left. Blue Ocean Strategy incorporated in Hong Kong, a matured worldwide recognized financial center with all business professional services available. Competition is also seen as a positive sign which promote the retailers own business. They looked at future strategy through a system of forms and rules designed to encourage employees to take appropriate action when situations arise. In red oceans—that is, in all the industries already existing—companies compete by grabbing for a greater share of limited demand. All financial transactions with multiple currencies can be transacted in Hong Kong for Chinese Enterprises that have global operation.
The main goal of a company in this market is to beat competitors. Cirque du Soleil omitted costly elements of traditional circus, such as animal acts and aisle concessions. Yes, it is possible to be successful pursuing a Blue Ocean strategy. The authors and fans of the book seem to want to play both sides of the argument. Private hospitals offer preventive health services, remotely or inpatient treatment services and rehabilitation services for individuals. This principle asks managers to migrate beyond the existing traditional customer base to include the much larger population of non-customers. Opportunities for growth and profit are reduced.
. Michael Porter 1996 defines strategy in terms of competitive strategy. If you answered yes, then here is the solution to your problem! Nintendo is notoriously conservative with its business practices. Pros: Lower costs due to scale of economies, greater efficiencies, and more innovation from knowledge sharing. A flashlight emits light by converting chemical energy stored in the batteries into electrical energy and then to heat and light in the light bulb itself. Am alternative red ocean strategy would be just to continue to make cellphones. Business Strategy encapsulates an organisation's intentions towards the achievement of its vision.
The idea is to create modular phone in which, the smartphone can be upgraded just like your laptop but with more ease. The book uses many examples across industries to demonstrate how to break out of traditional competitive structuralist strategic thinking and to grow demand and profits for the company and the industry by using blue ocean reconstructionist strategic thinking. Pros and Cons of Blue Ocean Strategy Essay Sample Blue ocean strategy makes the competition irrelevant by creating a new market space where there is no competitions. This is evident from the cut throat competition amongst the various industrial sectors, be it at domestic or global level. Represents all the industries in existence today-the known market space Characteristics of Red Ocean ii. This process is made through a distribution channel for example wholesalers and retailers.
Indeed these companies include some of the ones featured in the book; Southwest Airlines, Swatch, Cirque du Soleil, Blockbuster sic , etc. Market space is known as it has been created and contested. The competition often brought the consequences of business bankruptcy. A blue ocean is created when a company achieves value innovation that creates value. If there is a discount by Sensodyne, customers are likely to buy it and forget about their habitual toothpaste by, say, Colgate. We have the will power, expertise and ethical mind set in conducting our services, offering inside-out approach to our clients from the board room to customer contact level, helping them to succeed globally.
Swift again brought a huge success to the company. Cons: The benefits are not automatically realized when a company diversifies into a related business. Otherwise, every company would pursue a blue ocean. Competitive rules are to be explored and created. For global operation, with their global exposure, they could lead the Chinese clients to adopt the right culture, take a win-win approach in engaging the business with local communities. More so communication, love and belongingness, opportunity to undertake challenging task, identification with goal and overtime were among the critical factors. Thirdly, a critical appraisal of why this approach is better or worse off than other competing and value innovation theories is presented and finally the conclusion is drawn.
Its reduced cost structure enabled it to provide sophisticated elements from theater that appealed to adult audiences—such as themes, original scores, and enchanting sets, all of which change year to year. The company needs better predictive models. Factors such as competing industries for resources, and even excess demand have all proved too taxing for its supply chain. Based on organizational analysis, it is observed that some of the organizations especially in developing countries use a new type of strategy for sustainability at least for short term to overcome their high intensity problems and to get quick relief from the problems. Following this an investment bank can be used as a caser study agisnt this envi.