I am unable to reflect on this week¿s class as I was absent due to sickness and other personal issues.
The main point raised in this week¿s readings is that organisations need a clear and simply strategy. A second point is that a strategy takes into account your competitors and not just how the business will work (Magretta, 2009).
Charting Your Company¿s Future
(Kim & Mauborgne, Charting Your Company's Future, 2009)
The reading describes a ¿strategy canvas¿, a three part plan to simplify how a firm competes or should compete in an industry. The three stages are as follows. Firstly what are the factors which influence competition now and in the future. Secondly it looks at which factors your competitors are investing in. Finally how your own company makes use of these factors (Kim & Mauborgne, Charting Your Company's Future, 2009).
After reading this journal I am interested in forming a ¿strategy canvas¿ for our Mike¿s Bikes (MBs) world. I could find the factors which companies will be able to compete on. However as it is only the first week it is impossible to do it as no firm has released any new bikes yet. Due to this I cannot make any judgement calls on their strategies. I plan to analyse my own firm¿s strategy in the coming week so that we have a better idea of how to focus our efforts. I hope that I can make a strategy which sets my firm apart from our competition.
Why Business Models Matter & Blue Ocean Strategy
(Magretta, 2009) & (Kim & Mauborgne, Blue Ocean Strategy, 2009)
The most important aspect I found in this article was simple; make what the customer wants but do it differently to your competitors (Magretta, 2009). This idea relates very closely to the ¿Blue Oceans¿ reading. I noticed that the organisations in the readings designed their strategies by looking to see where their competitors were and who they were focusing on. Once they understood this they then focused on a less competitive area of the market (Walmart) or created innovative business practices (Dell) (Magretta, 2009). This concept is much like Blue Ocean Strategy (BOS) as it looks for areas with no competition to become differentiated from competitors. The largest benefit being reduced costs and differentiation (Kim & Mauborgne, Blue Ocean Strategy, 2009). The BOS is similar to the example of Walmart given by Magretta (2009). Walton purposely looked for areas that weren¿t being targeted by other large firms during the 1960¿s and was able to thereby reduce the risk of competitors as there would be no space for them in the market. He was differentiated as he was the only company targeting small towns with large department stores. He could reduce his costs as he ran the same model as the large department stores.
I hope I can apply this concept of strategy to MBs. Assuming my team can manage to get into a market and secure it before any other team can get a solid footing. By doing this I think we can reduce the amount of competition we face. This is much like what Peter said last week when he explained how he knew someone who completely taken over the leisure bike industry in MBs. I think it will be difficult as all the groups are aware of this type of strategy now and competition will be fierce in all areas. The next few weeks are probably going to be the fiercest and I expect people will start trying to apply BOS and fill the overlaps as well as the main market segments. There¿s going to be a lot of blood in the water with six teams in each world.
Kim, C. W., & Mauborgne, R. (2009). Blue Ocean Strategy. Harvard Business Review, 76 - 84.
Kim, C. W., & Mauborgne, R. (2009). Charting Your Company's Future. Harvard Business Review, 76 - 83.
Magretta, J. (2009). Why Business Models Matter. Harvard Business Review, 86 - 92.