Applied Business Development
Matti Kaulio
Dept of Industrial Economics and Management
Royal Institute of Technology 100 44 Stockholm, Sweden
Phone: +47 8 790 7607 Fax: +46 8 20 35 41
E-mail: mkaulio@kth.se
2009/10/15
- M. Kaulio -
1
Customer Value…
2009/10/15
• Coffe beans (from producers)
<0,01 /cup
• Roasted, branded & packaged
4 EUR/kg
• One cup of coffe (Machine)
1 EUR/cup
• ”Latte” in Stockholm city
3,5 EUR
• Espresso Piazza San Marco,
Venezia
14 EUR
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2
2009/10/15
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Red vs Blue Ocean
• Competing in existing markets
• Create uncontested market spaces
• Beat the competition
• Make the competition irrelevant
• Exploit existing demands
• Create and capture new demands
• Make the value-cost trade-off
• Breake the value-cost trade-off
• Align the whole system of a
firm’s activities with the
strategic choices of
differentiation or cost
• Align the whole system of a firm’s
activities in pursuit of differentiation
and cost
2009/10/15
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4
Blue Ocean Strategy
• Red vs Blue Ocean
• Unit of Analysis:
– Company
– Industry
– Strategic Move
• Value Innovation vs Technology Innovation vs Market
Pioneering
• Market conditions can be created
• Tools for business development
2009/10/15
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The Four-Actions Framework
Reduce
Which factors should be reduced
well below the industry’s
standards
Eliminate
Which of the factors
that the industry takes for
granted should be eliminated?
A new
value
curve
Create
Which factors should be created
that the industry has
never offered?
Raise
Which factors should be rasied
well above the industry’s
standards?
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6
• Make a Four-action-framework analysis of:
–
–
–
–
2009/10/15
Skype (2 groups)
Spotify (2 groups)
Iphone (1 group)
Ipod (1 group)
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7
Eliminate
Reduce
Raise
Create
Eliminate
Reduce
Raise
Create
Eliminate
Reduce
Raise
Create
Cross Case Analysis
2009/10/15
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11
Revenue Models
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Producer model
Broker model
Consultancy model
Performance-based model
The TelCom model/combination model (fixed cost + opening cost +
variable cost; opening fee + downloaded data)
The TechTrade model: Licenciering + royalty
The ”Gilette” model
The ”Drug Dealer” model
The ”Gore-Tex model”
The ”Adobe” model
The ”Singer” model
Internet Advertisment model
The Construction Industry model
”The Elevator Pitch”
• For (target customer)
• Who are dissatisfied with (the current market
alternative)
• our product/service is a (new product category)
• that provides (key problem-solving capability)
• Unlike (the product/service alternative)
• We have assembled (key whole product/service
features for your specific application)
Moore, p 149
If Nestlé can ….
2009/10/15
- M. Kaulio -