BLUE OCEAN STRATEGY

.

Blue Ocean Strategy



Blue Ocean Strategy

Introduction

Revenue, aprofitability, amarket ashare, aand acustomer asatisfaction aare aall ameasures aof aa acompany's acurrent aposition. aContrary ato awhat aconventional astrategic athinking asuggests, athose ameasures acannot apoint athe away ato athe afuture; achanges ain athe aenvironment aare atoo arapid. aToday's amarket ashare ais aa areflection aof ahow awell aa abusiness ahas aperformed ahistorically. aClearly, awhat acompanies ashould abe adoing ais ashifting athe abalance aof atheir afuture aportfolio atoward apioneers. aThat ais athe apath ato aprofitable agrowth. aThe aPMS amap aabove adepicts athis atrajectory, ashowing athe ascatter aplot aof aa acompany's aportfolio aof abusinesses, awhere athe agravity aof aits acurrent aportfolio aof atwelve abusinesses, aexpressed aas atwelve adots, ashifts afrom aa apreponderance aof asettlers ato aa astronger abalance aof amigratory aand apioneers.

Three Tiers of Non Customers in Wal-Mart

To amaximize athe asize aof atheir ablue aoceans, aWal-mart aneeds ato atake aa areverse acourse. aInstead aof aconcentrating aon acustomers, athey aneed ato alook ato anoncustomers. aAnd ainstead aof afocusing anoncustomer adifferences, athey aneed ato abuild aon apowerful acommonalities ain awhat abuyer's avalue. aThat aallows ait ato areach abeyond aexisting ademand ato aunlock aa anew amass aof acustomers athat adid anot aexist abefore. aAlthough athe auniverse aof anoncustomers atypically aoffers abig ablue aocean aopportunities, afew acompanies ahave akeen ainsight ainto awho anoncustomers aare aand ahow ato aunlock athem. aFor awal-mart, ato aconvert athis ahuge alatent ademand ainto areal ademand ain athe aform aof athriving anew acustomers, athe acompany aneeds ato adeepen aits aunderstanding aof athe auniverse aof anoncustomers. aThere aare athree atiers aof anoncustomers athat acan abe atransformed ainto acustomers. aThey adiffer ain atheir arelative adistance afrom atarget amarket.

Buyer Utility Map

As a retail company, Wal-Mart offers a wide array of products to consumers. These products include groceries, toys, and apparel for women, men and children, jewelry as well ...