Monday's lecture gave a good indication that our team needed to come up with a good strategy to have the competitive advantage needed in our world. Kim & Mauborgne (2004) states to be able to make a blue ocean strategy is making competition irrelevant. This was particular important for our team because based on the practise roll overs, we strategized how we needed to be on top. This put lots of stress in our upcoming decisions and more doubts into questions of what ifs. For the first practice roll over our team was at the top, which gave us a huge motivation to maintain our position and fix any mistakes necessary for our second roll over. However our competitive instinct got the better of us and result was not as good on the second roll over. This was because we copied our competitor¿s movements. Based on the article it has created a red strategy were the competition was intense in one market and nobody utilise other markets that was available. This has created many loss sales for our team.
Learning from our mistakes, we propose some strategies and realise competition did not matter. What mattered was how well we executed our plans and strategy. When the offline mode was removed, we couldn't practice our new strategy. This was a huge risk for our team by doing something we haven't tried before. Our strategy was utilising the markets many competitors didn¿t go into before. Having the knowledge of the perceptual map helped us greatly in understanding how to target our customers better. This in turn has developed a better strategy than we had before. It was a better strategy because if every competitor gone in the middle of the perceptual map, our consumer capture rate would have not been high. Therefore we would have not dominated majority of the consumer market. This was the reason why we failed in our practice roll overs, in that we did not understand the perceptual map and how it related to the opportunities in creating a competitive advantage.
Kim & Mauborgne (2004) talked about pursuing differentiation and low cost together for developing a blue ocean strategy. However when we dropped our price, our consumer perception of our bike was a low quality product. This brought up questions that in order for some bikes to have the perception of high quality, at what point do we drop the price? The reason could have been we have not established a customer based large enough to drop our prices. In saying this, if we drop our price after a few roll overs our consumers might think there is something faulty. Therefore the blue ocean strategy might not work if consumers have develop a perception of high quality base on price.
Kim, W. C. & Mauborgne, R. (2004). Blue ocean Strategy. Harvard Business Review, 82(10), 75--84