Enter your email address for free updates to this blog: 1. Ideally you would have customer survey data to back up these ratings and ensure the ratings were not heavily influenced by your own biases. Ngn Trn. Sales began to grow and the company turned its first profit in 2003 with sales of $272 million and a profit of $6.5 million. In 2007 Netflix began streaming video online so that subscribers could watch movies over the internet. The strategy canvas outlined in the book is basically a tool to visually show how a company will or has created a blue ocean strategy. A strategy canvas is the most fundamental tool used in the Blue Ocean Strategy framework. To me, this is a fascinating use of the two frameworks and I will plan to explore this in later detail. Our readers get much more than historic narrative with our analytical approach focusing on the how and why of battles and campaigns. Eliminate: Music storage, video storage, DVD, internet connectivity, Reduce: Development costs for video game producers (an average of $8 million vs $20 million), system sophistication, graphics, productions costs, retail price, processing power, Raise: Number of family games, more internally developed games, Create: Games for the elderly, motion controllers, Investment = $448 million (estimate based on annual reports with $124 million research & development costs and $394 million marketing costs), Profit = $1,032 Million (it is estimated Nintendo makes $6-$50 per Wii console sold for our calculation we will us $16 to be conservative, it is estimated there is 100.3 consoles sold as of October 30th, 2013 and that were was 67.4 Million 3 years after launch), 3 Year ROI = 130% or 32%/year (excludes over 250 Million Wii games sold by Nintendo that they have sold since launch), 3 Year ROI Including Game Sales = 800% or 108%/year (assuming a contribution margin 30% and average retail price of $40). They basically eliminated the store and created a new value driver with the DVD vending machine. Though Motorola engineers may or may not have used the strategy canvas to come up with this idea (they probably just wanted to repeat the success of the original Razr flip phone), if they had used it they would have quickly identified their competitive position in the market and recognized ways they could stand above the crowd of smartphonereleases. Management Review 47, No. 12 Steps to Creating A New Innovation From Scratch - FREE Video Training, Over 100 Slides Free and Downloadable As A PDF, "this helped me break down the first week of the co", "Jake, I'd love to get a copy of the hi-res image. The result of that question would be that you would end up raising the thinness of the phone at the expense of the life of the battery. (e in b)&&0=b[e].k&&a.height>=b[e].j)&&(b[e]={rw:a.width,rh:a.height,ow:a.naturalWidth,oh:a.naturalHeight})}return b},t="";h("pagespeed.CriticalImages.getBeaconData",function(){return t});h("pagespeed.CriticalImages.Run",function(b,d,a,c,e,f){var k=new p(b,d,a,e,f);n=k;c&&m(function(){window.setTimeout(function(){r(k)},0)})});})();pagespeed.CriticalImages.Run('/mod_pagespeed_beacon','https://ignitionframework.com/blue-ocean-strategy/','YddRYU7ik1',true,false,'pZivPcKmJ0I'); But what if you want to create a comparison of what could be? Strategy & Tactics Press was founded in 1991 with the purchase of Strategy & Tactics, the longest running military history magazine (since 1967). Price is meaningless. From a blue ocean perspective, Motorola essentially raised the thinness of their design to a level previously unheard of for premium smartphones and solidified a competitive edge for that product. The company was founded in 1997 in Silicon Valley by Marc Randolph and Reed Hastings. Heres a value curve with the elimination of an SD card identified: Another example of eliminate would be Redbox. Back to the smartphone example, when Google announced the Moto X in 2013, it offered something that had never been done before with smartphones complete color customization. Despite a low price, the product or service lacks differentiation, and the consumer perceives little value.. [CDATA[ Download Full PDF Package. The strategy canvas is an analytical framework we developed in our research on blue ocean strategy, which can be used to express an organizations three strategy propositions. In 2006, Nintendo introduced the Nintendo Wii as well as several advanced, revolutionary features with the Wii system. Blue Ocean Strategy Formulation- The Four Principles Of Strategy Formation -Click Here To Read This Article, 3. This paper. (function(){var g=this,h=function(b,d){var a=b.split(". By allowing customers to customize their phones colors according to their specific preferences, Google in essence created a new way for smartphones to provide value. Read online books for free new release and bestseller 65 Followers, 3 Following, 22 Posts - See Instagram photos and videos from 1001 Spelletjes (@1001spelletjes) You can download a copy for$19 by clicking below: Over 100 Slides Free and Downloadable as a PDF. According to the authors of the book Blue Ocean Strategy, Kim and Mauborgne teach that the pathway to successful innovation lies in doing a unique combination of one to four things to the attributes of your product, namely: Lets break these down as the next four steps in the process of innovation: Continuing the smartphone example, back in 2011, Motorola wanted to capitalize on the storied Razr brand of old by creating the worlds thinnest smartphone. Drag the board on to the simulator's canvas (this is the area with the square grid on it). 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