Blue Ocean Strategy Case

After you read the article Blue Ocean Strategy and watch the video on Blue Ocean Strategy, answer the questions.

1.What is a Blue Ocean Strategy? What is a red ocean strategy? Explain these from the perspective of company strategy (i.e., the value created), view of competition, costs (i.e., cut, added) and markets (i.e., new space).

2.The authors allude to the fact that most companies borrow their strategic thinking from military models (see ‘Paradox of strategy’). How does this model (mindset) affect perceptions related to competition and customers and what are the implications for creating value for markets (and employees!)?

3.Using the ‘Snapshot of Blue Ocean Creation’ exhibit, list and explain the key success factors for each of the three industries (auto, computer, movie theaters).

4.The authors claim ‘demand is created rather than fought over’ in blue oceans. What does this mean? Cite examples from the article.

Here is the link for the article and video:
https://www.youtube.com/watch?v=zrGOBdVm-KE&feature=youtu.be
https://learn-us-east-1-prod-fleet01-xythos.s3.us-east-1.amazonaws.com/5d01252a127d8/802642?response-content-disposition=inline%3B%20filename%2A%3DUTF-8%27%27Blue%2520Ocean%2520Strategy%2520Article%25281%2529%2520%25281%2529.pdf&response-content-type=application%2Fpdf&X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Date=20200314T170411Z&X-Amz-SignedHeaders=host&X-Amz-Expires=21600&X-Amz-Credential=AKIAZH6WM4PLTYPZRQMY%2F20200314%2Fus-east-1%2Fs3%2Faws4_request&X-Amz-Signature=a123e5242d55b6d2b8c97977ced351d561738039b53b3f0d6891a1cc271d3ff7

Sample Solution

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Systematic risk and expected returns in emerging markets.

Systematic risk, also known as “market risk” or “un-diversifiable risk”, is the doubt inherent to the entire market. Also brought up to as volatility systematic risk consists of the day-to-day fluctuations in a stock’s price. Volatility is a criterion of risk because it refers to the behavior, or “temperament,” of your investment rather than the reason for this behavior. Because market movement is the cause why people can make money from stocks, volatility is essential for returns, and the more unstable the investment the more chance there is that it will experience a dramatic change in either direction.

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Political Theory

In Power A Radical View(PRV), Steven Lukes provides a graphic description of the three views of power he labels one-dimensional, two-dimensional and three -dimensional(see figure 1,p,35). In this figure, Luke distinguishes between power and not-power . Perhaps the least intuitive distinction is his distinction between manipulation and persuasion; the manipulation of one actor by another is a manifestation of power whereas the persuasion of one actor by another is not. The concept of authority transcends this boundary such that authority can manipulate and it can persuade.Its ability to manipulate is one of its power capacities;its ability to persuade is not.

Using chapter one AS your primary source, PLEASE EXPLAIN the importance of this distinction between manipulation and persuasion to the underlying notion of power at work as defined by Lukes. WHAT IS THE DEFINITION OF POWER that makes this distinction possible? Do you find this distinction persuasive , as the terms is used by Lukes? Why or why not?

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Porter’s Five Competitive Forces

Consider this scenario:

A key component of strategic analysis and planning is the assessment of a company’s competitive advantage (referred to by some as competitive position). In the article by Michael Porter in this week’s Readings, he identifies five potential sources of competitive strength or vulnerability:

Existing level of competitive rivalry in the industry
Buyer bargaining power
Supplier bargaining power
Threat of substitute products
Threat of new entrants
Porter’s Competitive Forces model is an extension of his earlier work on strategy (Porter, M. E., 1996).

For this Assignment, use this week’s resources and any outside appropriate resources to prepare a competitive analysis for an existing product and complete the following:

Imagine that you are asked to provide a presentation on an organization’s competitive advantage to the organization’s board. To choose an organization, you may select your own or one with which you are familiar.

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