Seven crimes of the hottest Blue Ocean Strategy

2022-08-07
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Blue ocean strategy "seven sins"

blue ocean strategy provides a new strategic logic for our enterprises to get rid of the price war: value innovation. Some new tools such as value curve. However, the blue ocean strategy has "seven sins":

the first sin: the incomplete path of value innovation

price war is the red ocean. What is the path to get rid of price war and enter the blue ocean? The blue ocean strategy is not explained. According to its case analysis, we can summarize it into two types: one is intra industry innovation, and the other is inter industry innovation. However, there is a lack of a path, that is, innovation outside the industry. Many people think that it refers to innovation outside the industry, which is not in line with its logic. Its value curve can prove this. The value curve is based on the key success factors of the existing industry, without considering the possibility of innovation outside the industry

the second crime: the problem of the value curve

the value curve is not a new thing. People with a little strategic management foundation know the key factors for the success of the industry. In a sense, the value curve is a replica of the key factors for the success of the industry. The most important thing is that it cannot be applied to new industries. Otherwise, it will only remember the industries created by the initial data set last time, because the newly created industries simply cannot find the key factors for the success of the industry that (3) pour concrete with strength grade not less than C20 in the pit. For example, Tencent

the third crime: the concept of value innovation

in blue ocean strategy, the author defines value innovation as the difference between the buyer's value and cost. This is a misunderstanding of the concept of value: "price is how much customers pay, and value is how much customers get". This is the definition of Warren Buffett, but it reveals that value is the customer value interest point or its combination. Value is for the customer. The value of any enterprise's products or services is expressed by the price of customers, which is what Marxism says: price is the manifestation of value. Because of this, Liaoxiao believes that value innovation should be the permutation and combination of value interest points. Different permutations and combinations are different value innovations. That is to say, the difference in customer value and interests brought by any enterprise behavior means value innovation. For example, by reducing customer consumption and increasing feeder flights, Southwest Airlines is significantly different from other airlines' customer value points. This is value innovation. We often say, who is valuable to you, that is, whether he can bring benefits or combinations to you. Of course, this interest point is not only money, but also spiritual level

the fourth sin: the source of value innovation

value innovation is not water without a source. Where does value innovation come from? According to the book, through collective discussion and expert discussion, these are biased. The definition of value has told us that customers are the source of value innovation. Only from the analysis of customer value interests can we get new inspiration for value innovation. Even new industries are no exception. Because it is based on the analysis of the potential value and interest points of customers. Otherwise, customers will not be willing to pay for your products or services

the fifth crime: the relationship between value innovation and market structure

the blue ocean strategy did not reveal when the value innovation was to be made, nor did it explain the relationship between market structure and value innovation, nor did it explain that the same strategic choice was made without the sharing of technical personnel under different market structures. This is a theoretical defect

the sixth sin: myth of differentiation

the most fascinating thing about the blue ocean strategy is to launch the most attractive concept (from red ocean to blue ocean) at the most appropriate time (continuous price war). This reflects a principle of differentiation. Differentiation has always been regarded as a treasure by strategic management masters. In fact, differentiation is only a necessary condition for strategic success, not a sufficient and necessary condition. Differentiation is not a myth. Most differentiation can be copied quickly, that is to say, differentiation can only bring short-term competitive advantage. Not the key to long-term competitive advantage. According to economic theory, as long as the supply continues to increase, the monopoly profits and even normal profits of the market can not be maintained. Most industries in China are in a completely competitive market pattern (many people argue that this is an ideal model, but they ignore the dual structure of Chinese consumption and counterfeits, which lead to people treating product differentiation as zero). If the differentiation strategy is adopted, someone will soon imitate or pirate, just like the vista piracy launched by Microsoft. According to Porter's theory, suppliers, buyers, potential entrants, substitutes and existing competitors are the five forces that determine the market competition structure. We assume that other forces remain unchanged and only consider the factors of potential entrants. We can find that how to prevent potential entrants from entering the market is the key for enterprises to maintain competitive advantage. Tencent has opened up a new market, and will soon have other insulation materials companies with poor "fire performance" to enter the market, such as MSN, Skype, etc. Liaoxiao believes that the combination of differentiation and entry barriers is the essence of strategic success. Otherwise, differentiation is just a myth

seventh sin: logical confusion

blue ocean strategy is just a good idea. But it keeps the consistent bad habit of management: it can not provide a complete logical system. It does not provide the time to join the new blue ocean, that is, the timing of the blue ocean strategy, the paths of value innovation, the source of value innovation, and the relationship between value demands and value realization

the blue ocean strategy provides a new great idea, which is its success. Its value curve on innovation outside and between industries is also an effective consulting tool. However, the blue ocean strategy is not a rigorous theoretical system. There are seven sins. The new structuralist theory advocated by Liao Xiao will make up for these shortcomings, provide better "skills" and "tools" under the "Tao" of the blue ocean strategy, and provide more and better supplements and improvements for the blue ocean strategy, which is the upgrade of the blue ocean strategy. (end)

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