In this week lecture, we learnt about how to make a good strategy. In fact making a good strategy is as sophisticated as making a good decision. So I think good strategy comes from experience too! From every stage 1 and stage 2 business courses, we are given a concept that in order to maximum the organisation profit, we have to offer differentiate products or different value to customers in order to compete with the competitors. This idea is related to what Peter mentioned in the Monday lecture, that we should not always follow what the other competitors, we should differentiate our strategy. Besides that, he also mentioned a point that, the decision of MikeBike will not come out immediately, however, the effect of the decision of MikeBike will affect the future rollover. Therefore, it is important to have a long-term strategy.
The reading by Kim & Mauborgne (2004) has given me two insights of developing a good strategy. First, it highlights that competing in overcrowded industries is no way to sustain high performance. The real opportunity is to create blue oceans of uncontested market space (Kim & Mauborgne, 2004). According to the reading, a blue ocean is the ideal strategy and is considered to be an engine of growth (Kim & Mauborgne, 2004). So I think, blue ocean strategy is what our team should aim for! However, it is not easy to create a blue ocean. In order to create a blue ocean we need to create new market place, make differentiated competition, capture and create new demand, align the whole system of the company¿s activities in pursuit of differentiation and the most important factor, reasonable cost (Kim & Mauborgne, 2004). Second, the reading mentioned that, in blue oceans, demand is created rather than fought over (Kim & Mauborgne, 2004). Thus, I guess it suggest that in order to make a business success, the focus in on winning the customer, gain brand loyalty but not beating the competitors. In order words, we beat the competitors by winning the customers. So in order to apply the blue ocean strategy in MikeBike, I think we should focus on the consumer segment that other competitors will be less focus on.
However, how can we foreseen what competitors¿ move to determine which segment they are not going to focus? The reading, ¿Charting your company¿s future¿ gives the blue ocean strategy more depth and insight suggesting that we need to be proactive rather than reactive, in order to keep our strategy different with other competitiors in MikeBike ( Kim & Mauborgne, 2002). Kim & Mauborgne (2002) also highlights the idea that strategies are not always concrete, unforeseen circumstances and personal experiences can lead to strategies being changed over time. I think my team understand this logic well, as we decide to have a meeting after getting the result of roll-over, to analysis the reports, and decide what strategy we are going to use for the next roll-over. The challenge for our group is we have to find our market proactively, and to gain differentiated competitive advantage.
Lastly, the reading by Magretta (2002) ¿Why business matter¿ suggests that strategy is an important concept to an organisation. A good strategy can help us to create value, make us unique, setting us apart from our competitors and paving the way to market domination, higher sales and therefore higher profits. The reading also highlights that a good business model can help to create a good strategy and develop a strong competitive advantage. As a result, in order to perform well in the MikeBike, we should come up with a concrete business model. By implement the business model and strategy together, I am sure we can have a greater improvement in MikeBike.
In conclusion, as Peter mentioned in class, the ¿best¿ strategy doesn¿t guarantee you can perform well in MikeBike, however, the most important that affect your MikeBike performance is about your team work. I have to say I learnt a lot in the past few weeks in this course, not only about the MikeBike and writing the reflective learning journal, but more importantly about how to work as a team to come out with a good a strategy, giving good arguments to make sure that we have the best decisions for the group.
Kim, W. C. & Mauborgne, R. (2004). Blue ocean strategy. Harvard Business Review, 82(10), 75--84
Kim, W. C. & Mauborgne, R. (2002). Charting your company's future. Harvard Business Review, 80(6), 76--83
Magretta, J. (2002). Why business models matter. Harvard Business Review, 80(5), 86--92