Originally Posted by usmc-sgt Airlines don't typically take culture or brand experience into account when they eye a merge partner. There are many things SW wants that they can not acquire organically. I think I respectfully disagree here.
The first part presents key concepts of blue ocean strategy, including Value Innovation — the simultaneous pursuit of differentiation and low cost — and key analytical tools and frameworks such as the strategy canvas and the four actions framework.
The four actions framework aids in eliminating the trade-off between differentiation and low cost within a company. The four actions framework consists of the following: This questions which factors must be raised within an industry in terms of product, pricing or service standards.
This questions which areas of a company or industry could be completely eliminated to reduce costs and to create an entirely new market. Therefore, it can be reduced without completely eliminating it. Jet blue vs southwest prompts companies to be innovative with their products.
By creating an entirely new product or service, a company can create their own market through differentiation from the competition. The second part describes the four principles of blue ocean strategy formulation.
These four formulation principles address how an organization can create blue oceans by looking across the six conventional boundaries of competition Six Paths Frameworkreduce their planning risk by following the four steps of visualizing strategy, create new demand by unlocking the three tiers of noncustomers and launch a commercially viable blue ocean idea by aligning unprecedented utility of an offering with strategic pricing and target costing and by overcoming adoption hurdles.
The book uses many examples across industries to demonstrate how to break out of traditional competitive structuralist strategic thinking and to grow demand and profits for the company and the industry by using blue ocean reconstructionist strategic thinking. The four principles are: The third and final part describes the two key implementation principles of blue ocean strategy including tipping point leadership and fair process.
These implementation principles are essential for leaders to overcome the four key organizational hurdles that can prevent even the best strategies from being executed. The four key hurdles comprise the cognitive, resource, motivational and political hurdles that prevent people involved in strategy execution from understanding the need to break from status quo, finding the resources to implement the new strategic shift, keeping your people committed to implementing the new strategy, and from overcoming the powerful vested interests that may block the change.
Unlike the "red ocean strategy", the conventional approach to business of beating competition derived from the military organization, the "blue ocean strategy" tries to align innovation with utility, price and cost positions.
The authors justify with original and practical ideas that neither the company nor the industry is the best unit of analysis of profitable growth; rather it is the strategic move that creates "blue ocean" and sustained high performance.
The book examines the experience of companies in areas as diverse as watches, wine, cement, computers, automobiles, textiles, coffee makers, airlines, retailers, and even the circus, to answer this fundamental question and builds upon the argument about "value innovation" being the cornerstone of a blue ocean strategy.
Value innovation is necessarily the alignment of innovation with utility, price and cost positions. This creates uncontested market space and makes competition irrelevant. The new chapters in the expanded edition of the book deal with the issues of how to develop and align the three strategy propositions of value, profit and people, how to sustain and renew blue ocean strategy at both the business level and the corporate level, and how to avoid red ocean traps that keep organizations anchored in existing market space even as they attempt to create new market space.
Please improve it by verifying the claims made and adding inline citations. Statements consisting only of original research should be removed. December Cirque du Soleil — an example of creating a new market space, by blending opera and ballet with the circus format while eliminating star performers and animals.
The metaphor of red and blue oceans describes the market universe. In the red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known.
Here companies try to outperform their rivals to grab a greater share of product or service demand. As the market space gets crowded, prospects for profits and growth are reduced.
Products become commodities or nicheand cutthroat competition turns the ocean bloody; hence, the term "red oceans".
In blue oceans, demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set.
Blue ocean is an analogy to describe the wider, deeper potential of market space that is not yet explored. The aim of value innovation, as articulated in the article, is not to compete, but to make the competition irrelevant by changing the playing field of strategy.
The strategic move must raise and create value for the market, while simultaneously reducing or eliminating features or services that are less valued by the current or future market.
The Four Actions Framework is used to help create value innovation and break the value-cost trade-off.
Value innovation challenges Michael Porter 's idea that successful businesses are either low-cost providers or niche-players.Southwest vs. JetBlue So far, Southwest has been more successful than JetBlue in revitalizing itself.
Through the first three quarters of , JetBlue's operating margin was % -- up slightly. Jun 05, · Southwest’s big twice-a-year fare sale is back, with round-trip fares below $ on dozens of the carrier’s shortest routes. Some fine print applies.
There is actually a major difference between a CONTRAIL and a CHEMTRAIL. I know you have a problem conceding that ad for some reason - you dont want to admit it - but there is.
JetBlue was founded in by, as these things have a way of happening, a former Southwest executive. It flies mostly among the eastern United States, the Caribbean and a few South American. A new study shows that seating on JetBlue, Virgin America, and Southwest Airlines come with more legroom than American, Delta, and United Airlines.
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