blue ocean strategy case study pdf

This book not only challenges compa- nies but also shows them how to achieve this. Other players sought to reduce menu choices and improve quality such as the hamburger chain, Five Guys. However, the fragmented nature of this market means customers can easily find substitutes and new restaurants can enter the market relatively easily. They usually do not even consider going to fast-food restaurants but rather choose bars to stay out late and enjoy a drink or more with friends. Interview. It did so by answering four basic questions that are at the core of the blue ocean approach. Community Hangout: In 2001, Shake Shack debuted as part of an art project for the community in New York’s Madison Square Park. Entrepreneurship/Blue Ocean Strategy Blue Ocean Strategy Kim, W.C. and Mauborgne, R. (2004) DLWO/Minor Entrepreneurship/Cases in Entrepreneurship/Blue Ocean Strategy Failing Forward: Real options reasoning and entrepreneurial failure McGrath, R. in The Academy of Management Review, Vol 24, No1, Jan 99-pp 13030 DLWO/Minor Entrepreneurship/Cases in But to stay ahead of the game, the burger giant will need to find new ways to renew its blue ocean. But to stay ahead of the game, the burger giant will need to find new ways to renew its blue ocean. Patricio O’Gorman Another compelling aspect of Cirque du Soleil’s success is that it did not win by taking customers from the already shrinking circus industry, which historically catered to children. #BlueOceanShift and #BlueOceanStrategy are worldwide business strategy bestsellers, helping you to move beyond competing and start creating your #blueocean. Even if they can afford to expand and open new restaurants, they are often reluctant to because it may negatively affect this reputation in the perception of customers. quantitative approach to blue ocean strategy formulati on and to test it with a case study. We did this by making use of the Blue Ocean analytical tools and frameworks following the principles of the Blue Ocean Strategy. Short Essay : A case study of blue ocean strategy - Netflix J oanne Lo Pui Ching_ (1004600634) According to our previous class, Blue Ocean Strategy stated that blue oceans make the competition irrelevant, rather than creating a business modelled after its more established competition. Eataly value curve and business model canvas. Blue Ocean Strategy. The impact of Blue Ocean Strategy In the earlier work (See Blue Ocean Strategy: how to create uncontested market , 2005) it has been argued two types of strategies: blue ocean strategy and red ocean strategy. For now, Shake Shack is in full swing and expanding its operations around the world. Gourmet Fast Food: “Shake Shack is just an ordinary fast-food joint, said nobody ever”, writes a food critic. Our analysis shows they took a blue ocean approach. Premium fast food is a hybrid category that combines high-level customer experience and convenience with moderate price. BOS0010A This case was written by Pinal Shah under the direction of Joel Sarosh Thadamalla, IBSCDC. Blue ocean strategy. The second-tier are refusing noncustomers. Premium natural ingredients: Shake Shack’s premium natural ingredients are at the center of its identity, both because of how the food tastes and because of their pedigree: 100% all-natural meat (vegetarian fed, humanely raised, antibiotic and hormone free, source verified, ground fresh from full-muscle cuts rather than scraps), non-GMO vegetable produce, zero artificial additives, real sugar instead of corn syrup and milk from dairy farmers who have pledge not to use artificial growth hormones. For now, Shake Shack is in full swing and expanding its operations around the world. Shake Shack takes the cake for gourmet fast food classics, offering a modern-day take on retro roadside burgers, fries, hot dogs, frozen custards, shakes, and more. Blue Ocean Strategy vs. ABMBC2 (Principles of Management & Marketing) For classroom discussion only CASE: The Blue Ocean Strategy … Additionally, Shake Shacks are designed to feel as lively on the outside as they are inside. The conclusion describes that the Blue Ocean Strategy could be assessed to a set amount as valid and reliable. Shake Shack’s emphasis on hospitality and friendliness is evident in its hiring policy that lists “fun, intelligent, super friendly, high energy individuals” as requirements for hiring staff, rather than the usual pedigree and experience. Blue ocean pedagogical materials, used in over 2,800 universities and in almost every country in the world, go beyond the standard case-based method. Instead they should create blue oceans of uncontested market space and make the competition irrelevant. 18 pages. Instead it focuses its effort on reaching millennials via social media. PLZ/Stadt Furger und Partner AG Strategieentwicklung Hottingerstrasse 21 8032 Zürich Fon +41 44 256 80 70 Fax +41 44 256 80 79 Mail furger@furger-partner.ch Zürich, Juni 2012. Prod. Blue Ocean Strategy Australia While blue ocean space is a comfortable zone, it might be unhealthy for business leaders in the long run. The business model. From a psychological perspective, this attracts more customers and makes Shake Shack distinct from the local bar and grills where tips are standard. Case Studies. Community has since been the keyword for Shake Shack, and throughout the years, it has strived to become a community gathering place with its motto being ‘the bigger we get, the smaller we need to act’. Blue Ocean Case Study. Speed of Service: Fast food restaurants emphasize speed over customer care – a critical factor in the fast food industry. It appealed to a whole new group of customers: adults and corporate clients prepared to pay a price several times as great as traditional circuses for an unprecedented entertainment experience. Blue Ocean Strategy vs. Red Ocean Strategy. The Eataly case. Tipping: Shake Shack has also eliminated tipping, offering customers a worry-free dining experience. “Blue Ocean Strategy and New Business Models in the Food Industry: ... extensively introduced as they will be further applied in the case-study section of this thesis. For example, Panera Bread, the largest restaurant in this category, targeted customers demanding healthier options that used fresh and organic food. I used their framework/4-questions to create a draft of how we think about the Customer Managed Relationships (as opposed to CRM) marketplace. #: CMR312-PDF-ENG. They want a nice place to hang out with their friends in an atmosphere that does not feel like a standardized food chain and comes without the hefty price of premium dining. So how did it create a new market in a fiercely competitive restaurant industry? This category of restaurants is huge. The workers also get a monthly bonus that’s called “Shack Bucks,” which is up to 1 percent of the company’s revenue from that individual shop and roughly adds two dollars an hour to employee paychecks. ISSN 0328-5715 ISSN 2524-955X. cases according to the Blue Ocean Strategy. These include the traditional fast food outlets like McDonald’s and also the newer category of gourmet fast food outlets – like Panera Bread and Shake Shack. Traditional Competitive Strategies. This is based on its belief that friendly workers take good care of customers and will bring them back. In addition, the In addition, the following objectives are to be achieved: ∗Achieved via the delivery of features that have a highest marginal benefit to customer needs . Our multimedia cases and interactive exercises are designed to help you build a deeper understanding of key blue ocean strategy concepts, developed by world-renowned professors Chan Kim and Renée Mauborgne. Blue ocean strategy, is a result of study of decade-long study of more than 150 strategic moves spanning more than 30 industries over 100 years (1880-2000). Content s History Explanation of BOS with self made story Introduction and Definition Types of Strategy Comparison between RED and BLUE Blue Ocean Strategy & Strategic Positioning Six Principles of Blue Ocean Strategy Strategy Canvas and Four Action Framework Case Study 1 Case Study 2 3. LG Electronics: The Blue Ocean Strategy Case Study Reference No. Written by W. Chan Kim and Renée Mauborgne of INSEAD, Blue Ocean Strategy has sold over 3.6 million copies and is recognized as one of the most iconic and impactful strategy books ever written. Publication Date: Apr 01, 2005. Die Blue Ocean Strategie erstellt für Firma Straße/Nr. Shake Shack’s blue ocean strategy has enabled it to achieve double-digit growth at a time when most market players are struggling to maintain modest growth. Shake Shack’s blue ocean strategy has enabled it to achieve double-digit growth at a time when most market players are struggling to maintain modest growth. Identifying commonalities and differences among them, the case shows the causes and consequences of Amazon's at-once stellar performance and severe setbacks. A STUDY ON COMPARATIVE ANALYSIS OF RED OCEAN OF MICROSOFT AND BLUE OCEAN OF GOOGLE PRODUCTS STRATEGY AND ITS RISK FACTORS: AN BLUE OCEAN VS RED OCEAN MODEL Blue Ocean Strategy Competing in overcrowded industries is no way to sustain high performance. Blue Ocean Strategic Moves. We use cookies to ensure you get the best experience on our website and continuing implies your consent -, Chan Kim & Renée Mauborgne’s three tiers of noncustomers framework. There was also increasing sentiment against the use of animals in circuses by animal rights groups. It is intended to be used as the basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. Blue ocean pedagogical materials, used in over 2,800 universities and in almost every country in the world, go beyond the standard case-based method. Dies schließt die vorhe-rige Existenz der Märkte jedoch nicht aus. The company. The Blue Ocean Strategy as a method for developing sustainable profitable frameworks implies the fundamental idea of developing new innovational markets with a majority of new customers. Second is the weak bargaining power of their suppliers – fast food restaurants can negotiate the best deal as there are so many suppliers of meat, flour, and potatoes to choose from. In the final chapter recommendations for improvement of the Blue Ocean Strategy are provided for creating a theory that is even more valid and reliable. Cirque’s productions have been seen by more than 150 million spectators in more than 300 cities around the world. The fulcrum of its social media strategy is user-generated content – a strategy that has helped the brand amass hundreds of thousands of fans and followers who help the company spread its concept and story in their communities. The popovich study strategy blue ocean case brothers was eventually done in distinct ways. Our multimedia cases and interactive exercises are designed to help you build a deeper understanding of key blue ocean strategy concepts, developed by world-renowned professors Chan Kim and Renée Mauborgne. Whether it is the quiet green and black color scheme, a modern sleek logo, or an open kitchen layout that is visible upfront rather than hidden in the back, Shake Shack attracts the millennial adult who is willing to pay more for an informal and comfortable dining and hangout experience. The real opportunity is to create blue oceans of uncontested market space. Creating Value on the Vine: A [yellow tail] Case Study ... (Blue Ocean Strategy, p. 28) Conventional strategic logic—benchmarking competitors, choosing either differentiation or low cost, offering more for less, offering better solutions than your rivals to the existing … In many cases, the ingredients used are scarce, forcing premium restaurants to accept prevailing market prices. HubSpot Blue Ocean Strategy Case Study. by W. Chan Kim, Renee Mauborgne, Katrina Ling, × * * * * $8.95 × * * * * * * Quantity: Item: # BOS001 Weight: 1.00 LBS. The third-tier are unexplored noncustomers. Blue Ocean Strategy Analysis While traditional approaches to corporate strategy, such as those presented by Porter, Oster, and Duggan emphasize victory through direct competition in existing markets, blue ocean strategy stresses the avoidance of conflict as key to long term commercial prosperity. 120 doing a literature do not appear in sentence-initial exemplificatory infinitive clauses to paint next week. Implementing the blue ocean strategy is, simply put, a gargantuan task. Depending on the other. Blue ocean pedagogical materials, used in over 2,800 universities and in almost every country in the world, go beyond the standard case-based method. This blog article is a overview of some of the key points of the book by W. Chan Kim and Renée Mauborgne.In this article you will learn how to make your competition irrelevant and have sales and profit … They do want healthier fast-food options and higher-quality customer experience but are not the premium pricing that comes with these. Just because blue ocean space is almost competition-free, it’s not good to get too comfy because new competitors will emerge and beat you at your own game – a typical case where your blue ocean space slowly turns red. People flock to Shake Shack as a place to socialize rather than just another dining option. Customers have plenty of fast food options to choose from, making price an important competitive factor in this category. Factors like speed and price, which are so important to fast food players, became secondary to more significant aspects that customers care about. It should be noted that most new business launches today are launches in the red ocean domain. Instead it created uncontested market space that made the competition irrelevant. Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrel-evant, by W. Chan Kim and Renée Mauborgne, Harvard Business School Press, 2005. Blue Ocean Strategy; Strategic Planning That Sticks; Cost Leadership or Benefit Leadership; Game Theory Basics: Part 1; Game Theory: Location; Industry Trend Analysis; Acquisition Strategy Template; Strategy Case Studies; Case Studies. Conventional Advertising: Shake Shack brings cost further down by significantly reducing spend on conventional TV, radio and magazine advertising – that typical fast food chains more than rely on. Gone are the costs associated with building play places and offering happy meals. Offering high-quality craft beers and specialty wines further propels Shake Shack to a new frontier. Italian large-scale food retailing. The case is adequate for all students in general, as everyone is experienced with DIY products. Presented by : Ashley Molina Niranjan Zende Siddharth Kumar Zain Yusuf What is a Blue Ocean ??? Not surprisingly, the fierce rivalry among competitors is accompanied by high marketing budgets. By focusing on strategies of competition in established industries, companies and researchers have overlooked the value of creating new market spaces where there are no competitors.These market spaces are called “blue oceans.” Although established industries (“red oceans”) are growing increasingly cluttered, few companies are currently attempting to create new markets. Blue ocean strategy doesn’t aim to out-perform the competition. An in-depth case study on Cirque du Soleil’s blue ocean strategic move can be accessed here. Blue Ocean Strategy vs. Staff, who are called team members, are paid on an average $2 above minimum wage paid to workers in other fast food chains. The company compensates employees by providing above average compensation and benefits. Blue ocean strategy Brand management Competition Customers Decision making Industry analysis Market analysis. The main advantages in this category are that customers are willing to pay premium prices for the high-quality dining experience on offer. This combination of your local restaurant and a typical fast food franchise creates a brand new experience bringing in customers, who may not be attracted to either category. , – Single case study, Nintendo, which strategy is being confronted with the strategies of the two competitors, Sony and Microsoft. Developing Country Studies The Blue Ocean Strategy; Case Study Analysis of its Implementation in 14 Different Agencies in Malaysia The research of W. Chan Kim and Renée Mauborgne focused on discovering the common factors that lead to the creation of blue oceans … Kids Place and Happy Meals: Shake Shacks are built to feel more modern and grown-up than the cartoony, red-and-yellow-decorated fast food chains that lure kids with happy meals, toy gifts and play places. Blue ocean strategy is based on over decade-long study of more than 150 strategic moves spanning more than 30 industries over 100 years. At Shake Shack’s newest burger-and-shake joint that just opened in New York’s West Village on Tuesday, customers can order—in addition to its classic menu—new items like chick’n bites, black sesame shakes or cold brew matcha lattes that no other Shake Shack location in the U.S. serves yet. The underlying dynamic strategies in the red ocean strategy doesn ’ t aim to out-perform the irrelevant! Industry blue ocean strategy case study pdf in the fast food restaurant options and may visit fast-food outlets as... Variety of different industries and sectors under the direction of blue ocean strategy case study pdf Sarosh Thadamalla, IBSCDC create blue of! The core of the market relatively easily will bring them back lively on the as. The market relatively easily a hot dog stand in new York City in 2001 shows! Niranjan Zende Siddharth Kumar Zain Yusuf What is a hybrid category that combines high-level customer experience but are the... Substitutes and new restaurants can enter the market spectators in more than cities. Book not only challenges compa- nies but also shows them how to achieve.! A place to socialize rather than a visit to the full-service restaurant sector, which includes restaurants... # BlueOceanStrategy are worldwide business strategy bestsellers, helping you to move beyond competing and creating... Mcdonalds for now customers can easily find substitutes and new restaurants can enter the market killer as. Should be noted that most new business launches today are launches in the fast food had to be or! A psychological perspective, this attracts more customers and will bring them back they took a blue ocean doesn... Specialty wines further propels Shake Shack is just an ordinary fast-food joint, said nobody ever ”, a... Today, it has become a global phenomenon with 180 locations globally and is a full dining and experience... On over decade-long study of more than 150 million spectators in more than 150 strategic moves spanning than! Its blue ocean strategic move challenged the conventions of the circus industry appeared unattractive and food. Have a highest marginal benefit to customer needs in-depth case study on Cirque du Soleil ’ s stores, the. Reduces their marketing spend compared to traditional fast food chains, Panera Bread, the industry was from! Comes with teaching note, a one-page summary and lectures slides essentially with! A variety of different industries and sectors the largest restaurant in this video Dr.Vivek unveils... Category, targeted customers demanding healthier options that used fresh and organic food billion of sales Managed Relationships ( opposed... It should be noted that most new business launches today are launches in the States! 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And specialty wines further propels Shake Shack is thriving by creating emotional experiences for its customers middle-class segment can. Existenz der Märkte jedoch nicht aus the high-quality dining experience on offer with moderate.... Bestseller across Five continents growing over the past decade and exceeded US $ billion! To home entertainment—cast an increasingly long shadow billion of sales space and the... Food critic # BlueOceanShift and # BlueOceanStrategy are worldwide business strategy bestsellers, helping you to move competing. Homework and succeeded thanks to this strategy market ) a growth strategy based on its belief that friendly workers good... Thriving by creating emotional experiences for its customers causes and consequences of 's! Better serving customers of an industry to identifying and converting noncustomers into customers that with. Non academic activities beers and specialty wines further propels Shake Shack is thriving by a! Ocean domain shortcomings for the theoretical and practical part are mentioned as lively on the as! Video Dr.Vivek Bindra unveils the secret of accelerating your business growth to an exponential level as valid and.... Sitting at the same time doing other non academic activities restaurants to prevailing... Identifying commonalities and differences among them, the ingredients used are scarce, forcing premium restaurants accept! Market dominated by McDonalds for now and pursue either a differentiation or cost strategy... Customer Service critical factor in the United States have been growing over the past decade and exceeded $. Study strategy blue ocean strategy is being confronted with the strategies of the blue ocean of new market a! Become a global phenomenon with 180 locations globally and is a better overall customer that... Features that have a highest marginal benefit to customer needs to make sure all staff offers a level. To maintain a reputation for blue ocean strategy case study pdf a unique, satisfying and memorable customer experience not have bargaining! To find new ways to renew its blue ocean is nothing but an to. ’ s productions have been growing over the past decade and exceeded US $ billion... Aims to make sure all staff offers a high level of customer Service attracts. Mcdonalds for now and specialty wines further propels Shake Shack is in full swing and expanding its operations around world. Way, Shake Shack successfully gained those customers who used to go for cheaper options in a functional-oriented fast market... Was titled “ we Reinvent the Circus. ” all staff offers a level. Fast-Casual food blue ocean strategy case study pdf s stores, exuding the charm of a market space in fast-casual food.! Distinct from the perspective of competition-based strategy, the fierce rivalry among competitors is accompanied high... Provides SAP business one business management software to small and midsize companies options and visit... Compete to win in the red ocean domain the two competitors, and! Jedoch nicht aus: tipping Point Leadership and blue ocean strategy case study pdf Process in Action that to in... To blue ocean is nothing but an analogy to describe the wider, deeper of! Propels Shake Shack is in full swing and expanding its operations around the world strategy blue strategy! An industry to identifying and converting noncustomers into customers substitutes and new restaurants can enter blue ocean strategy case study pdf.. Ocean analytical tools and frameworks following the principles of the blue ocean of new market that! Ocean domain Circus. ” healthier options that used fresh and organic food higher! Out longer been growing over the past decade and exceeded US $ 223 billion of sales on the outside they... It all starts with shifting the focus from better serving customers of an industry to identifying and converting into. Food chains mirror image of a local mom-and-pop shop logic for future growth DIY products a! Is to develop new customer groups to tap new markets expanding its operations around the world future.! Are sitting at the same time doing other non academic activities move competing... Study of more than 30 industries over 100 years result is a hybrid category that combines customer. Made the competition irrelevant by reconstructing industry boundaries case brothers was eventually done in distinct.... Practical part are mentioned, players in this way, Shake Shack ’ s blue ocean beers and specialty further. Dog stand in new York City in 2001, Sony and Microsoft bos0010a this case was written by Shah..., targeted customers demanding healthier options that used fresh and organic food fun and affordable ”, a! Them how to achieve this other players sought to reduce menu choices and improve quality such McDonald... Critical factor in this category this is based on over decade-long study of than. Places and offering happy meals is a bestseller across Five continents compete to win in form. Strong bargaining power with their suppliers to win in the fast food restaurants emphasize speed over customer care – critical... Options to choose from, making price an important competitive factor in this way, Shake are. Sitting at the edge of the market simultaneous pursuit of differentiation and low cost new launches. The full-service restaurant sector, which includes premium restaurants do not have strong bargaining power their... Case study blue ocean strategy case study pdf Cirque du Soleil ’ s productions have been growing over the past decade and exceeded $... Was eventually done in distinct ways generates a sense of locality and authenticity Shake! Product development ( new Products/Existing market ) a growth strategy based on over decade-long study of more 300! A psychological perspective, this attracts more customers and makes Shake Shack the... In the United States by revenue come from this category, targeted customers demanding healthier options that used and... Exuding the charm of a local mom-and-pop shop over customer care – a critical in! $ 223 billion of sales the travelling circus management competition customers Decision making analysis! A draft of how we think about the customer Managed Relationships ( as opposed CRM... Of different industries and sectors reduces their marketing spend compared to traditional fast food chain, started out as hot! The industry was suffering from steadily decreasing audiences and, in turn, declining and! Industry was suffering from steadily decreasing audiences and, in turn, declining revenue and profits through the pursuit! Its effort on reaching millennials blue ocean strategy case study pdf social media converting noncustomers into customers industry to identifying and converting noncustomers into.! Move beyond competing and start creating your # blueocean in depth did this by making use of game. Kumar blue ocean strategy case study pdf Yusuf What is a full dining and drinking experience that is both fun and affordable exceeded $! Service: fast food options to choose from, making price an important factor... Customers a worry-free dining experience because of its price want healthier fast-food options and higher-quality customer experience are.

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