Drawing a ¿strategy canvas¿ can lead to ¿strategies that are easy to understand and communicate, that engage more people within the organization, that engage more people within an organization, and that unlock the creativity of participants" (Kim & Mauborgne, 2002, p.78). Using the strategy canvas approach allows a business to map out the current factors that affect competition within the market. Although I find that a strategy canvas might be a handy tool to use while we¿re in this MikesBikes simulation, the time constraint of only having 5 rollovers might be a little tight for us to spend time planning on a whole strategy canvas. After reading about the strategy canvas, I believe that we should've been given this article when we started on our practice rollovers, as this would've given us more time to map out a strategy canvas and plan with a longer time frame. The Four Steps of Visualizing Strategy set out by Kim and Mauborgne (2002) emphasised on the four visuals; Visual Awakening, Visual Exploration, Visual Strategy Fair and Visual Communication. I believe that my team and I have used parts of this four step strategy plan. We have yet to identify our competitors main strategy (but we will after we analyse the first and second rollovers), however we have gone through the visual exploration stage, where we¿ve explored all the possible options/strategies that we can take. This would allow us to view and map out patterns of the various markets. I did a pros/cons for all the bikes that we are able to produce, and brought up some key points in our team meetings. This leads us to the visual strategy fair part of the four step strategy plan (whether to compete in a Red ocean or a Blue ocean, which will be discussed later in this journal). By discussing the benefits and disadvantages to the different strategies brought up in our meeting, this allowed us to really consider which strategy would be the best for us to take (which then links in to our readings last week and how to make effective decisions). As for the last step - visual communication, I believe that this is the only step that needs to be done after our first few rollovers, as we would be able to take our previous decisions and compare them to the strategy we have. Therefore, I am hoping to go through the visual communication step as we go through MikesBikes, and to see where our bikes excel and where our bikes fail to make an impact in the market. Our group meetings does not have many ¿visuals¿ during our discussions, but I hope that after reading this article, we would learn the importance of mapping out our ideas and strategies to see how we are aligned with our long-term goals and also the strategies of our competitors. By using these four steps, I am hoping that as a team, we would be able to gather all the data that we¿ve collected and analysed, and form it into a strategy canvas that would give us a better view of our strategy and if it aligns with our goals as a company. After our practice world and our first rollover, we have been communicating well with one another, and I do hope that we would be able to use these four steps and implement them into our decision making process in the future. I always find that theories and ideas can be easily understood with a picture/visual aid, therefore I hope what I've said can be summarised with the diagram below.
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According to Kim and Mauborgne, ¿Red oceans represent all the industries in existence today-the known market space.... Blue oceans denote all the industries not in existence today-the unknown market space, untainted by competition¿ (2004, p.77). Red oceans are where competition within the industry is fierce and where companies try to maximise sales of existing demand. Blue oceans are where new markets are created and where there is opportunity for expansion and growth. When you take these theories and put them into our business simulation, it is obvious that teams can either choose to compete in a Red ocean or a Blue ocean (this relates to our class discussion on Monday, which will be discussed later in this journal entry). Risk plays a big factor when teams create a strategy – to play it relatively safe and tap into the segment with the biggest potential market, or to take the risk, and go into the smaller market where there are a lot of uncertainties, but with bigger rewards. This comes down to the each team¿s long-term goals and strategies. In our team discussion, we came up with advantages and disadvantages for operating in both ¿oceans¿, and as a team, we¿ve finally decided on a strategy, and here¿s hoping that we¿ll follow through with our plans and be able to adjust to any changes in the industry.
The class discussion on Monday brought up the idea of having a focus strategy and what we need to do as teams to facilitate that strategy. Should we go for a Broad or Focus strategy? It was clear that we would have to choose either one, and make sure we put our whole focus on it. It would be risky (and almost impossible) to have both a Focus and a Broad strategy as you would most likely not pose a threat to competitors and would not dominate in either market. So which strategy is better - a focus or a broad one? I¿ve taken many papers in Uni (Innovation and Entrepreneurship, International Business, Infosys, Marketing and Business papers) where I¿ve come across articles about strategy, business plans/models and I must say that after reflecting on all the papers I¿ve done, the relationships with one another is starting to show and theories are beginning to link in with other theories. I¿m hoping that my experience with these papers and my past experience of working in groups will help me translate some of my knowledge into our business simulation.
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