Question
The Blue Ocean Shift presents several innovative ideas in the strategic group concept. One of the most surprising is the idea of creating a new market space or 'Blue Ocean' that makes the competition irrelevant. Instead of competing within the confines of the existing industry or market, companies should look beyond the current competition and create new market spaces. This is achieved by redefining the industry boundaries and focusing on the big picture, not the numbers. Another innovative idea is the 'Four Actions Framework' which challenges companies to simultaneously pursue differentiation and low cost to create a new value curve. Lastly, the 'Eliminate-Reduce-Raise-Create Grid' helps companies to decide which factors of competition should be eliminated, reduced, raised, or created.
This question was asked on:
A "strategic group" is a set of companies with similar business models or service offerings across an industry. For example, in the restaurant services industry: fast food, fine dining, to-go meal replacements, among others, all fit in the same strategic group. The members of these sub-groups have different competitive qualities in: preparation time, price, freshness, presentation, flavor, etc. These differing qualities cause the industry to have more rapid innovation and competition.
Receive new free presentations every Monday to your inbox.
Full content, complete versions — No credit card required.
