This week was challenging in more ways that one. With the first ¿real¿ rollover looming pressure was building. After coming top of the class in the final practice rollover, my team felt like we had really cracked a successful strategy in order to do well in MikesBikes. However, then came the bombshell of having no access to the offline mode. After all the hard work we had put into MikesBikes last week in order to make decisions that weren¿t just stabs in the dark, I felt quite defeated. I felt like we all had to revert back to a guessing game, and with it bought uncertainty. How could we possibly be successful while having to guess figures each week? I had been quite proactive with recording each decision that we had made for previous rollovers, so in a way that was a savior. We were able to look at the new figures we had come up with compared with our previous decisions and discuss in depth why we were opting to change them or keep them the same. Our team has really gelled well together and we are able to understand and communicate effectively during our meetings. However, this week we had a key team member missing and it proved to cause more stress than I initially thought. We had to communicate our final decisions over Facebook before the Thursday deadline and for me personally, it made me doubt some of the decisions we had made. I really want to do well in MikeBikes and I need to learn to have full confidence in my team. As 12pm rolled over on the clock I was ready and waiting for the results. To my amazement, we did really well. I was so relieved and so proud of my team. Although we can only see the class rankings in terms of SHV, our market capitalisation looks great too. Each rollover makes me increasingly excited for the next and I can¿t wait to see the results in class today.
Over to the readings for this week, I found Blue Ocean Strategy incredibly interesting. I would never thought of producing bikes, or any product for that matter, not directly aimed at the centre of the target market. To me it seemed liked a waste of time and would cause lost sales as you weren¿t producing the ¿perfect¿ bike. However, Peter¿s diagram indicating that although there are the highest number of consumers in the centre of circle on the perceptual map, if everyone is aiming for the middle we all have to share. Deciding which market(s) to enter on MikesBikes has been difficult. Like all teams, we don¿t want to enter a market where everyone is trying to compete with one another, but then again we don¿t want to miss out on sales opportunities. Using the blue ocean strategy requires a lot of planning and preparing for future rollovers. In order to successfully use this strategy we had to think carefully about which bikes were the best to overlap with regard to our factor specs and capacity. The decisions we are making now are certainty vastly different to the ones we were making at the beginning of the practice rollovers. This shows that we are starting to think strategically as well as thinking long term. With six firms in our world we need to be smart about our choices, hence, preparing for the second rollover we decided on our future strategy and only time will tell if it will pay off.
Kim, W. C. & Mauborgne, R. (2004). Blue ocean strategy. Harvard Business Review, 82(10), 75--84