Strategy, Business Information and Analysis - Assignment Example

It will be a critical section creating strong fundamentals so that further extensive study will be easier. The second section will talk about critical risks associated with blue ocean strategy as well as alternative models which define the overall strategy. The third section will describe various strategic management theories and strategies and their relationship with blue ocean strategy. The section will also describe ways to overcome the limitations associated with each of these strategies through application of Blue Ocean Strategy.

The overall objective of the strategy is to understand the importance of blue ocean strategy and the relevance of its application in current scenarios. Contents 1.Introduction 4 2.Section One 5 2.a. Logic of Blue Ocean Strategy 5 2.b. Listing non-consumers-/non buyers 5 2.c. Sequence of BOS 6 2.d. Buyer experience Cycle 6 2.e. Strategy Canvas 7 2.f. ERRC Grid 7 2.g. To be canvas 8 3.Section Two 8 Critical risks of Blue Ocean Strategy 8 Outside versus inside out strategy 9 Emergent versus rational strategy 10 Adoption process 10 Learning approach 11 4.

Section Three 11 Disadvantages of Blue ocean strategy 11 Porter’s Generic Strategy 12 Ansoff’s Matrix 12 Disruptive Innovation 13 Experience Innovation 13 Scenario planning 14 Conclusion 14 Reference List 16 1. Introduction Strategy has been implicitly used in various ways, even though the traditional definition is limited. The 5 Ps of strategy were first coined by Mintzberg (1992); plan, ploy, pattern, position and perspective. Understanding and implementing these elements helps organizations in developing practical, robust and successful strategies for business.

Nestle is one of the renowned food manufacturing companies across the globe. It was founded in the year 1865 by Henri, with initial focus on infant nutrition and later, expanded into other confectionary and milk-based products. Nestle has continuously focussed on its core products while diversifying into new and emerging categories. Nestle company has been chosen for applying the logic of blue ocean strategy because of the extreme industry rivalry as well as maturity of the market. As a result of the constant growth of local competitors, new emerging companies and decreasing demands among consumers, profit margins have become low (Hollensen, 2007).

A simultaneous retailer and distributor consolidation has helped in raising their power of bargaining against plethora of wine producers. Fiery battles are fought for distribution and retail space. With no surprise, companies which are weak and poorly run are swept aside. In order to hold its grounds as well as create a sustainable competition, Nestle could think of implementing blue ocean strategy (BOS) as an initiative. Downward pressure on prices of low involvement food products has crept in.

BOS could help in creating sustainable differentiation to the company compared to its competitors. 2. Section One 2.a. Logic of Blue Ocean Strategy Food manufacturing around the globe consists of an array of industries, differing in inputs and produced goods. In the current scenario, competition is the major concern for Nestle. Food markets as well as ingredient suppliers are facing pressure in terms of higher commodities as well as shelf prices. The fundamental logic of BOS is that it provides high amount of profit growth at lower risk and is applicable to even those industries which are