GROUP 3

BLUE OCEAN STRATEGY ARIZO, LYNTHER MYLE

CALUB, SHENEN JAY
DELA CRUZ, CRISTINE
GULLITIW, HEPSI
MENDOZA, JESSA MAE
PALITA, TEODORICO
SAGARIO, MARIECONNE
TULAGAN, DIOJAHNA FAITH
BLUE OCEAN STRATEGY

01 02 03 04

BUYER
PRICE COST ADOPTION
UTILITY
 BLUE OCEAN
STRATEGIC SEQUENCE
What is blue ocean strategy?

- Developed by Chan Kim and Renée Mauborgne

- Open market space
- Create new demand
- Competition is irrelevant
“Buyer utility”

- What your company does to add value to

every product?
- Does it increase productivity?
- Does it add up to convenience?
“BUYER
UTILITY
MAP”
BLUE OCEAN STRATEGIC SEQUENCE KEY QUESTIONS TO ASK

PRICE
◦Is your price
easily
accessible to
mass of the
buyers?
PRICE
◦ To have strong revenue flowing, the strategic price must be set.

◦ This procedure will ensure that consumers will want to buy and will
have the compelling ability to achieve it.

◦ It is fundamental, from the start, to know the price that will bring mass
of target consumers.
◦ Global Satellite (Gsat) is a direct-to-home satellite services. It wasn’t doing
well at P300 per month until they experimented with and launched the
price busting prepaid service of P99 per month offer. Today Gsat has over a
million subscibers after surviving and learning from previous failures.
 TOPIC: BLUE OCEAN
STRATEGY & GETTING THE
SEQUENCE RIGHT
Cost: Can you attain your cost target to profit at your strategic price?
Cost

◦ Creates a leap in value for itself in the

form of profit.
➢price of the offering minus cost of
production
Can you attain your cost target to profit at your
strategic price?
◦ You should not let costs drive prices nor
should you not let costs drive prices.
◦ Targest cost cannot met:
-forgo the idea because it won’t be
profitable
-innovate your business model to hit the
target cost.
ADOPTION
 WHAT ARE THE ADOPTION HURDLES IN
ACTUALIZING YOUR BUSINESS IDEA? ARE YOU
ADDRESSING THEM UPFRONT?
W. Chan Kim and Renée Mauborgne identified four key hurdles to strategy
execution:
•The Cognitive Hurdle: Waking employees up to the need for a strategic
shift. Red oceans may not be the paths to future profitable growth, but
they may have served the organization well historically, so why rock the
boat?
•The Resource Hurdle: It is assumed that the greater the shift in strategy,
the greater the resources it requires for execution.
•The Motivational Hurdle: How do you motivate key players to move fast
and tenaciously to carry out a break from the status quo?
•The Political Hurdle: As one manager put it, “In our organization you get
shot down before you stand up.”
 Who’s Presenting?

Henlo bHousxz medtek dindinganda

MANAGE PROFILES
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5-POINT SCREENING QUESTION

FOR ENTERING A MARKET

OPORTUNITY SCREENING: What you want to pursue?
It is the development of thoughtfully selecting the best opportunity. It is the process by which entrepreneurs' asses
innovative product ideas, strategies, and marketing trends.
Resume + My List

OVERVIEW:

Customer Timing Finance Product Competetiveness

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FIRST POINT

CUSTOMER

The first criteria in screening and shortlisting various

opportunities upon entering a market lies with your
customers. In here, we ask, is the market real? So, a yes
would imply that the proposal is feasible.

Resume + My List
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CUSTOMER
- Is the market real?

Entrepreneurs must have a sensemaking skill to:

1. Determine that a market gap or market problem truly exists

2. Be practical enough to do business with those willing to transact with the market gap

3. Be competent enough to know whether the firm is in the best position to satisfy the unmet
need.

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SECOND POINT

TIMING

A market must be scalable as business must plan to grow. Channel of

distribution can also determine the extent of market reach, hence the
size of the market
When timing the market, not only is the investor required to predict
when the market is low enough to buy, they must also predict it is high
enough to sell.

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TIMING
-Is market big enough?

Time in the Market vs Timing the market

Understanding timing surrounding policy effective dates - Important in building a productive acquisition

Environmental factors could also impact traffic.

Right place, right time, right consumer in the right frame of mind – key to successful marketing strategy

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THIRD POINT

FINANCE
Explanation :
Entrepreneurs must understand the company's breakeven
point as well as the recovery period of their investment in
order to plan for critical mass of volume and superior financial
returns.

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FINANCE
- Can it be profitable?

Understand how much money you need in order to start your business

1. What are the startup costs associated with this business?

2. What are my funding options for starting my business?

3. How long before I can become profitable?

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FOURTH POINT

PRODUCT
Explanation :
A product is a for-sale commodity that can be a service or a physical entity
while demand, efficiency, marketing, and the particular target segment all
affect the price that can be paid. A product must be technologically capable
of doing what it is intended to do and do it well. Consumers and future
consumers must understand why they need to use it and what advantages
they can obtain from the product, or how it affects their daily lives.

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PRODUCT
-Can we differentiate?

- Differentiation is about uniqueness, but uniqueness can only be considered if there is relevance.

What does your product or service do accomplish/offer that competitors does not?

There are few ways that a company can differentiate their

products

QUALITY / DESIGN / SERVICE AND INTERACTION /

PRICING

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FIFTH POINT

COMPETETIVENESS
Explanation :
Globalization has brought significant benefits to the business.
However, it has also sharpened competition. As a result, it
increasingly difficult for organizations to achieve, maintain,
and improve business competitiveness.

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COMPETETIVENESS
- Can we win?

What makes a company “competitive”?

1. Ability of organizations to produce goods or services with a favorable quality-price

ratio

2. Competitiveness ensures that the company is sustainable and durable.

3. Two types of competitiveness: PRICE COMPETETIVENESS and STRUCTURAL

COMPETETIVENESS

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Entrepreneurs must be wise enough to

shortlist their opportunities carefully.
A “no” to a single question makes the proposal not feasible.

SIGN
OUT
 INDUSTRY SCREENING AND
KEY FACTORS FOR SUCCESS
Group 1
Alay-ay, Woodsworth Christ Luis
Munar III, Domingo Fermin L.
Tolentino, Mark Dave B.
Camagay, Danelli Anndrea C.
Gonzales, Trisha Faith V.
Langbayan, Joyce D.
Pascual, Marie Elaine B.
Toquero, Lanni Mae C.
INDUSTRY SCREENING
 KEY FACTORS FOR SUCCESS
Key Factors for Success (KFS) is a blueprint composed of controllable and uncontrollable variables
critical to the success of a firm, that must be managed well, in order to attain its goals and
outperform its competition.

Photo from http://www.constructionworld.org/keys-to-operating-a-successful-construction-business/

OPERATIONAL IMPROVEMENTS FROM
KEY FACTORS FOR SUCCESS -Waters Philippines
Key Factors for Success Operational Improvements
Large and motivated sales force • Product range
• Recruiting
• Training
• Retention
• Sales Leadership (Coaching, Motivating, etc.)
Availability • Branches
• Independent Stockists
• Delivery systems
Payment plans • Credit scoring
• Collection management
Reward and recognition programs • Photo wall of top sales performers
• Regular awards ceremony (monthly branch,
quarterly and annual recognition)
• 5-star international trips
• Car plan
• Housing plan
LARGE AND MOTIVATED SALES FORCE
• Understanding what motivates an individual
• Developing skills and providing the effective tools
necessary to succeed
• Establishing a collaborative environment
LARGE AND MOTIVATED SALES FORCE
(OPERATIONAL IMPROVEMENTS)

Training

Product Sales
Range Leadership

Recruiting Retention
LARGE AND MOTIVATED SALES FORCE
(OPERATIONAL IMPROVEMENTS)
1. Product Range
A group of products that generally have something in common or
compliment each other in some way
LARGE AND MOTIVATED SALES FORCE
(OPERATIONAL IMPROVEMENTS)

2. Recruiting
The process by which a business seeks to hire the right person for a
vacancy.
LARGE AND MOTIVATED SALES FORCE
(OPERATIONAL IMPROVEMENTS)
3. Training

Enhance knowledge and skills

Uniformity of work process

Less supervision
LARGE AND MOTIVATED SALES FORCE
(OPERATIONAL IMPROVEMENTS)
4. Retention
A strategy that an organization used to improve its culture,
employee experience, customer’s satisfaction, and business
outcomes.

Examples:
-Surprise gifts and discounts
-Appreciate your employees’ hardwork
LARGE AND MOTIVATED SALES FORCE
(OPERATIONAL IMPROVEMENTS)
5. Sales Leadership
It involves strategic decision-making and the ability to inspire and
motivate team members.

-Strategic thinking
-Strong communication skills
-Having a powerful vision for achievement
-The ability to coach, motivate, and inspire others to perform
AVAILABILITY
Percentage of time that the business, system or solution is operational under
normal circumstances in order to serve its intended purpose.
AVAILABILITY (OPERATIONAL
IMPROVEMENTS)
Branches
• Branch is defined as an extension of the parent organisation, which is set up
at another location, to increase their coverage. Branches are opened to
perform the same business operations as performed by the parent company,
to increase their reach. The officer-in-charge of the branch is known as the
branch manager, who is directly responsible for the work of the branch, as
well as reports to and take instructions from the head office.
• Most of the banks and financial institutions have branches that are opened to
play the agency role.
• Setting up branches at various remote locations, increases the customer base,
accessibility and also helps in timely and effective distribution of goods and
services.
AVAILABILITY (OPERATIONAL
IMPROVEMENTS)
Independent Stockist
• They store goods in the form of stocks, and then distribute them to the respective users.
They handle all the relations with the distributor and sometimes push the stock onto the
distributor to meet their sales targets and basically perform one type of business at the
regular intervals of time.
• Independent stockist make available of the products at the time of shortage of
resources.
AVAILABILITY (OPERATIONAL
IMPROVEMENTS)
Delivery System
• Designing the service delivery system should focus on what creates value
to the core organisations and how to engage frontline employees to
deliver the ultimate customer experience.
• The four key elements in such a system are:
AVAILABILITY (OPERATIONAL
IMPROVEMENTS)
Delivery System
• Designing the service delivery system should focus on what creates value to the
core organisations and how to engage frontline employees to deliver the
ultimate customer experience.
• The four key elements in such a system are:
• Service Culture is built on elements of leadership principles, norms, work habits
and vision, mission and values
• Employee Engagement includes employee attitude activities, purpose driven
leadership and HR processes.
• Service Quality includes strategies, processes and performance management
systems. The strategy and process design is fundamental to the design of the
overall service management model
• Customer Experience includes elements of customer intelligence, account
management and continuous improvements.
PAYMENT PLANS
3 Methods of Payment
1) Cash
2) Credit
3) Payment-in-kind (bartering)
• A payment plan can refer to paying off any outstanding debt, or
sometimes more than one debt by means of consolidation into an
organized payment schedule
PAYMENT PLANS
• Within a payment plan for financing, the consumer pays back a fixed
amount of money every month until the balance is cleared

• Traditionally, a payment plan would have referred to a monthly

amount being paid directly to the retailer as part of an installment
schedule, in advance of receiving the merchandise
PAYMENT PLANS(OPERATIONAL
IMPROVEMENTS)
1. Credit scoring
• Credit scoring is a statistical analysis performed by lenders and financial
institutions to determine a person’s or a small, owner-operated business’
creditworthiness.
• Credit scoring is used by lenders to help decide whether to extend or deny credit.
A credit score can impact many financial transactions, including mortgages, auto
loans, credit cards, and private loans.
PAYMENT PLANS(OPERATIONAL
IMPROVEMENTS)

2. Collection management
PAYMENT PLANS

Why payment plans are important?

REWARD AND RECOGNITION
PROGRAMS
Are you curious about:
……………………………………….....................................................................................................
...................

Why do Reward and Recognition

Programs were included in the
Key Factors for Success?
Because they are…

SOURCE

MOTIVATION INSPIRATION
Recognition programs
•Photo wall of top sales performers
•Regular awards ceremony (monthly branch, quarterly and
annual recognition)
Reward
•5-star international trips
•Car plan
•Housing plan
WHAT TO CONSIDER WHEN FORMULATING
KEY FACTORS FOR SUCCESS
• KFS are largely based on industry winners, who they are and why they have
won or are winning
• The industry the firm competes in must be defined well so that the KFS can
be distinguished thoroughly.
• Define KFS by market segment because what is true in one market segment
may not be true in another.
• Include similar products that can provide the same satisfaction to the
consumers in considering the segment.
• The KFS must be reviewed periodically because not all rules will be the
same over time.
• Market challengers must try to reinvent the KFS in order not to be trapped
to play catch up versus market leaders. They need to have new insights in
order to be guided in what to start doing and what to stop doing.
LOGIC OF STRATEGY
IN KEY FACTORS OF SUCCESS
-Costumers
-Competitors
-Capabilities
-Capital
-Channels
-Communication
-Coordination
 COSTUMERS
-It is additionally important to realize that not all customers are the same.
You would like to distinguish your clients and discover the bunch that's the
foremost profitable.
COMPETITORS
- When comparing what you have got to offer to your competitors, it is
additionally critical to clearly get it what truly differentiate your product or
benefit from what is as of now accessible
CAPABILITIES
-Capabilities are basic since they help to
establish credibility and validity leads to client confidence.
- Keep in mind the advantage is what you’re advertising the
costumer. Costumers frequently withhold their last commitment
until they feel confident that you can make good on your promise to
deliver

CAPITAL
- This funding makes a difference the business meet its initial costs, such
as office space or equipment. Raising startup capital is
a critical step within the handle of launching a new business.
CHANNELS
- How will the project results be made available to the marketplace
and end users? Does the organization dominate the supply chain
or have a partnership with another organization that does?
- Getting the project results to the customer can sometimes be
more challenging than developing the product in the first place,
thus reducing the success potential.
COMMUNICATION
- Businesses work on data and the quality of the data is basic. In the event
that the modern opportunity implies setting up, expanding,
or adjusting your communication, prepare at that point the
organization has to decide the affect.
COORDINATION
- To be successful, organizations need to be smart about how they
select and execute projects that provide real benefits to all
stakeholders. Unfortunately, success targets may be so unrealistic that
organizations make restructuring, acquisition, and project management
decisions that move them beyond their core abilities. All too often,
project and business failures are caused by, or worsened by,
over-expanding beyond the core
References
• https://www.jifiti.com/glossary/payment-plans/
• https://www.investopedia.com/terms/c/credit_scoring.asp
• https://smallbiztrends.com/2012/12/eyeing-key-payment-factors-to-ensure-a-successful-
future.html
• https://www.thebalancesmb.com/what-are-key-success-factors-2295508
• https://blogs.managementconcepts.com/2012/09/24/seven-key-success-factors-to-consi
der-for-strategic-growth-and-ultimately-project-success/
• https://www.business.com/articles/5-ways-to-beat-competition/
• Reliability vs Availability: What’s The Difference? – BMC Software | Blogs
• Difference Between Branch and Subsidiary (with Example and Comparison Chart) - Key
Differences
• Four Key Elements of a Service Delivery System (servicefutures.com)
• Difference between Distributor and Stockist | Distributor vs Stockist
Industry screening, KFS, Waters Philippines, and presentation prepared by:
Trisha Gonzales
Large and motivated sales force presented by: Joyce Langbayan
Availability presented by: Mark Tolentino
Payment Plans presented by: Woodsworth Alay-ay
Rewards and recognition programs presented by: Lanni Toquero
What to consider when formulating KFS preented by: Elaine Pascual
Logic of Strategy presented by: Anndrea Camagay