Business and HR solutions - improving performance, productivity and profitablilty

Blue Ocean Strategy

What your score says about where your business is

In today's over crowded industries, most companies fight long and hard for competitive advantage, battle for market share and struggle for differentiation. They do this only to find themselves fighting their rivals head-on in a bloody "red ocean" over a shrinking pool of profit. These red ocean strategies are less and less likely to create profitable growth in the future.

Blue Ocean Strategy argues that tomorrow's leading companies will succeed not by battling competitors, but by creating "blue oceans" of uncontested market space ripe for growth. Such strategic moves - termed "value innovation" - create powerful leaps in value for both the firm and its buyers, rendering rivals obsolete and unleashing new demand.

BLUE OCEAN PRELIMINARY DIAGNOSTICS

Is Your Ocean True Blue or Bloody Red?

For each question please indicate which of the three answers best describes your organisation:

1. How high is your level of competition?

You are able to differentiate your products, however competitors soon replicate your offering, or introduce their own differentiator

The level of competition is low and the market is still growing

You fight long and hard for competitive advantage and market share, but you find yourself fighting rivals head-on over a shrinking pool of profit

2. What is the importance of price discounting when selling your products?

Some discounting exists, but clients are seeking to differentiate on other factors as well

Clients expect discounts and price is the number one competitive factor

There is no discounting in the market for your products

3. What is the nature of your focus on brand management?

You do not see your brand as an important source of value

Brand management is important but you invest heavily in brand creation

Your focus is on the management of existing brands

4. Do you see a conflict between the management of quality and innovation?

You give a priority to quality control, and innovation is seen as too risky

Innovation is a priority, and you see no conflict between innovation and quality

Innovation is undertaken, but quality management of existing products comes first

5. How important are new products and markets in your strategy for achieving growth?

Your strategy depends on organic growth

New products and markets that provide diversified opportunities are core to your growth strategy

Your growth strategy incorporates mergers and acquisitions that may lead to synergies

6. Are you confident you have a strategy for strong sustainable growth once the economy starts to grow again?

Very confident

Somewhat confident

Not confident at all

7. What are your priorities for funding strategic initiatives?

You find it easiest to get funding for initiatives that focus on cost reduction

You give the highest priority to investing in strategic moves that might allow you to break away from your competitors

Funding to match strategic moves made by competitors are always easiest to justify

8. How do you compare your competitive factors with those of your key competitors?

You have very different competitive factors compared to your key competitors

Your competitive factors are largely the same as your key competitors

You have similar competitive factors to your key competitors but you outperform them on key measures

9. How important is the cost of your product or service as a competitive issue?

You compete on price so cost reduction strategies such as outsourcing are a priority

You are able to charge a premium price so cost is not your highest priority

Commoditisation of offerings is a frequent worry

10. How do you introduce new ideas, or apply current thinking in fundamentally different ways, to grow your business

You develop new ideas and thinking within your business but you have mixed success with them

You depend on the tried and trusted ideas that have historically been successful in your business

You have practical and predictable ways of analysing, testing, and implementing new ideas

11. What percentage of your annual sales derives from new products or markets established in the last two years?

Less than 5 percent

Over 5 percent but less than 20 percent

Greater than 20 percent

12. How important is cross-selling in your organisation as a growth strategy?

You are successful in identifying and exploiting cross-selling opportunities to existing and new clients

Cross-selling is not a significant growth strategy in your organisation

Your organisation believes cross-selling is important but you have not got a high success rate

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