Week 5 was the start of the competition phase of Mikes Bikes. I am quite excited about this but nervous to see how it is all going to play out. I think the readings this week about creating a strategy are going to be very helpful in our teams.
I think the biggest thing I have learnt this week is that the market is going to continuously change based on the decisions of other teams, and that as a team we cannot just make a set decision in our role, we must coordinate with other team members in order to achieve the best results. In my team we have talked about strategies in analyzing the data to make the best decisions. The Kim and Mauborgne reading talks about one way of solving this problem, by drawing a strategy canvas. They explain the four steps involved in drawing a strategy canvas which I think will help is make better decisions as a team. In Mondays lecture we talked about why companies have strategies similar to those of the competition who are successful. This saves them costs on market research etc in order to gain market share.a
The Red and Blue Ocean concept describes a market space that already exists with a large number of firms all competing for the same market share. I think organisations often feel it is to risky and costly to enter into new markets. An advantage of the blue ocean strategy is that firms generally have increased brand awareness as they receive customer loyalty from the beginning and that they can design the rules of the market themselves.
Margetta 2002, believes that the basic structure of the business that does not focus on what competitors are doing is a strong focus on maximizing revenues and profits.
To conclude, strategies are very important in business because they can help organisations identify the advantages and disadvantages, help them understand what they need to change, and how to change systems in order to be successful and gain market share. I think my team will make good decisions if we continue to analyse the data and stick with successful strategies that will hopefully arise.
Kim, W. C. & Mauborgne, R. (2002). Charting your company¿s future. Harvard Business Review, 80(6), 76--83
Kim, W. C. & Mauborgne, R. (2004). Blue ocean strategy. Harvard Business Review, 82(10), 75--84
Magretta, J. (2002). Why business models matter. Harvard Business Review, 80(5), 86--92