Using the strategic move, this case examines the three strategy propositions for the online encyclopedia industry and how key factors from one proposition can support and reinforce the other two propositions. This case demonstrates how strategy is more than creating value for customers, it should create value for buyers both customers and noncustomers, profit for the company, and motivate its people staff, business partners, and the general public to embrace and execute the new strategy with enthusiasm and commitment.
If the value and profit propositions are strong but the people proposition does not motivate the organization to move forward with focus and commitment, it will result in execution failure. Alternatively, if the people proposition is powerful but the value and profit propositions are weak, the companys performance will be lackluster due to formulation failure. The case comes with a four-part theory-based video, available here at blueoceanstrategy.com upon request for professors only. The first part of the video case provides an overview of the online encyclopedia industry, from the first printed edition of Encyclopedia Britannica to Microsofts failed attempt to sustain its Encarta.
com offering. Then, the video case explores each of the value, profit, and people propositions of the online encyclopedia industry through interviews with key players including the founder, executive director, staff, and volunteers of Wikipedia, otherwise known as Wikipedias HYPERLINK https//www.blueoceanstrategy.
com/contact/ l request-teaching-materials Request material here. In combination with the video case, the instructor can use the accompanying lecture slides to lead an engaging class discussion that is excellent for both MBAs and executives. The case also comes with a comprehensive teaching note that includes answer keys and strategy canvas templates for class discussion. Despite a long-term decline in the circus industry, Cirque du Soleil profitably increased revenue 22-fold over the last ten years by reinventing the circus.
Rather than competing within the confines of the existing industry or trying to steal customers from rivals, Cirque developed uncontested market space that made the competition irrelevant. Cirque created what the authors call a blue ocean, a previously unknown market space. In blue oceans, demand is created rather than fought over.
There is ample opportunity for growth that is both profitable and rapid. In red oceans that is, in all the industries already existing companies compete by grabbing for a greater share of limited demand. As the market space gets more crowded, prospects for profits and growth decline. Products turn into commodities, and increasing competition turns the water bloody. There are two ways to create blue oceans.
One is to launch completely new industries, as eBay did with online auctions. But its much more common for a blue ocean to be created from within a red ocean when a company expands the boundaries of an existing industry. 5. IT PROVIDES A STEP-BY-STEP PROCESS 6.
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