The Application of Blue Sea Strategy

Our team in the Blue Ocean Strategy Simulation was Anuket. By the end of all rounds of the simulation, our company health was the following.

Share Price Index was at 842

We owned or operated a 14% market share with Red Container and 15% market share with Blue Box

The Revenue made at the end of 2015 were $888M, Blue container contributing with $455M

Earnings before Passions and Taxes were $26M for blue pack and $11M for red box

In my survey I'll analyse Blue Circular 1 and make an effort to chuck light on a few of the decisions considered and their implications on the company health.

Blue Circular 1

After successfully completing the Red rounds, we inserted the blue round with a stock price of 783. In such a round our target was

Visual Awakening: To comprehend the worthiness Curves for all your rivals and then understand the business overall Value Curve.

The Blue Ocean manual gave a Visual Exploration guide, which experienced complete market requirements. It was necessary to read and analyse the results of the Visual Exploration conducted.

On the foundation of the analysis done, To-Be ERRC grids and their associated Strategy Canvases needed to be developed.

To create a set of competing factors that could create the Blue Sea product offering

To divide the budget between three divisions - Existing Red Sea product, recently created Blue Sea product and Corporate Projects.

Make all other decisions to kick off the Blue Sea product in the market - price, creation volume, marketing investment and the degree of physical expansion

In this round we decided to form two strategy canvases - one for Way 3 and another for Journey 5.

Path 3 looked at the chain of users and customers and tried to address their needs. Our Blue Pack got a console electric power of 3. Console electric power was a way of measuring the sophistication of the game and it was on a scale of 2 to 10. Avenue 3 segment didn't want high sophistication in the overall game and therefore we retained it at a low value. Moderate images was that which was needed by this section and hence our offering was at a value of 96. Although in conditions of controller elegance, the segment sought high values and so we placed it at 18 on the scale of 20.

Apart from the most common parameters, to be able to make a blue sea we created some unique offerings for the section. The buyers required higher duration and complexity of the game titles and we created this offering. Aside from this we also offered Rechargeable Electric batteries, the capability to leave information for others inside your home and the ability to control gaming patterns. These requirements came out of our analysis in the aesthetic exploration and therefore we designed them.

Path 5 seemed over the "Functional and Emotional Appeal for Clients". Our Blue Container in this category tried to focus on the needs of the section of potential buyers who looked at functional and mental facet of the console above all else. The console ability was kept at 8, as the clients wished higher control over the overall game sophistication. Moreover in addition they wanted an increased degree of visual sophistication and hence it was designed to an even of 224 out of 288. The section didn't want any multi-media add on and therefore we removed it. Ease and ease of starting of the overall game was high goal while they gave high importance to the look of the console. Both these factor were designed in our offerings.

Once our tactical canvas was ready, we made a decision to launch in one of the two paths. We chose avenue 3 as that was the most significant market segment. In this particular path, price needed to be moderately priced to be able to accomplish maximum market show. We charged our offering at $344 and we made a decision to produce 2400 devices. We also made a decision to allocate $16150 towards marketing bills and $60891 towards physical expansion.

Impact of the decisions taken

Our Blue Ocean offering was designed to attract only 1 of the noncustomer types revealed by the Visible Exploration: those discovered in Course 3. We could have generated more sales by determining common Value Factors which created value for other styles of noncustomers and including those inside our offering. Nevertheless the noncustomer type found out during the Visible Exploration of Course 3 found our product offering attractive enough to get. Our pricing had not been accurate and the clients found the product price too much. The price was not low enough to attract the mass of non customers. Our Blue Sea offering included the Value Factors "Controller Sophistication and Rechargeable batteries". These factors have appealed to a huge proportion of the noncustomers. However, our product exceeded the prospects of the market. As a result, we lost some margin without creating additional sales. Our Blue Ocean offering also included the Value Factors "Console Power (Class of Game Experience), Graphics Elegance and Capability to control gambling habits". These factors got their mass appeal amongst large proportion of noncustomer but our product failed to meet market anticipations for these factors. As a result, we could not make higher sales size. We also included the worthiness Factors "Multimedia Add-ons and Capability to leave announcements for others inside your home" in our blue ocean offering. These factors appealed for some non customers, and provided low additional value to the vast majority of noncustomers. Because of this, we lost some margin without creating any additional sales. While the Value Factor "Length and Complexness of Game titles" didn't provide any value to noncustomers and we lost margin without creating any additional sales. Overall we had created way too many factors and exceeded the marketplace expectations while building the Blue Ocean offering, and we did not eliminate enough factors that didn't charm to the non customers. Thus we lost margin and our world wide web earnings was low.

In the next round we decided to modify our offering and appeal to a large percentage of the non customer basic. However due to some problem in the software, our journey 3 did not appear in the next round, and we'd to make a re-launch our product only in the path 5 as this is the only way available. Furthermore we could not create any longer pathways later in the rounds also and therefore we ended the game at a stock price considerably below than what we had expected.

Applying Blue Ocean Technique to Perfetti

Perfetti currently manages in the Red Sea with all its offering in the confectionary market. The existing confectionary industry in highly cluttered and many players compete against Perfetti. To make the competition irrelevant, we first need to study the challengers.

Perfetti has multiple products under different brands. Each of these products encounters competition from many different players. The internal most group shows all the brands of Perfetti as the circle soon after it shows the direct opponents to the Perfetti brands. While the outermost group shows the region of indirect competition. For instance in the Breathing freshener category, Perfetti's Chloromint face immediate conclusion from Mintofresh and Halls and indirect competition from Pan Masala and Go Pass.

Once the opponents were recognized I tried to check out an opportunity which got no competition. The medicinal market searched attractive. A number of parents want their kids to involve some of the ayurvedic herbal remedies based medicines, as the kids do not want to own it as the tastes of these therapeutic herbal remedies is very bad. It really is the forex market space that people want to generate and give value offerings.

Bramhi is a therapeutic herb that is very good for increasing storage area power and concentration, essential by students. This plant when blended with honey shows extreme improvement in recollection power. Perfetti gets the capacity to produce fruit packed candies. These candies have the centre filled with fruit drinks like mango or guava. Instead of the juice being filled, the new candies will have juices of the bramhi leaves. The style will be masked by using honey and other elements. The product will charm to a huge most the consumers. Sugar content is something which retains non consumers away and therefore this can be eliminated.

According to the ERRC model Perfetti's new offering can be framed as follows


Use of Sugars in candies


The chocolate and caramel content


The health factor


New herb structured toffees

The new Healthy Perfetti toffees will be packaged in a new environment friendly packaging which would be steady with the idea of health living.

As a test run, the merchandise could be launched in the weeks leading to a major exam like the planks etc in one or two major cities and then your market reaction studied in those cities. Once the company is convinced that the product has enough market probable, the product might have a nationwide launch.

This product would generate a Blue Ocean for Perfetti and give it an early on mover advantage that is crucial for suffered higher income.

Learning from Blue Sea Strategy Simulation

The critical factor in becoming profitable is learning what your consumers value and what they don't value. Increase or create such factor that the consumers value, while eliminate and reduce the factors that consumers don't value. It really is imperative that each organisation must create service improvements. Creating service innovations means

Focus on results

Establishing a culture

Choosing profitable segments

Choosing attitude over aptitude when recruiting people and provide training and coaching

Focus on what creates value for customers

Lastly Blue Sea opens up a whole new learning field for organisation. It really is like playing soccer without any opponents, and your customers are your team mates. The customers will help you take the ball nearer to the target, and you will have to hit the ball into the goal post, as there is absolutely no competition, the ball will type in the target post each and every time. The ball here's profit margin and the goal is the higher target arranged by the organisation.

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