Reasons for industry fragmentation

Strategic choices for fragmented industries

Common characteristics of the internal structure of emerging industries (Introduction period® High risk® Uncertainty)

Obstacles and opportunities for the development of emerging industries

Strategic choices for emerging industries (Dealing with uncertainty)

Objective questions

"Value innovation" does not focus on competition, but strives to make a leap in the value of both customers and enterprises. Open up a new non-competitive market space;

The creation of a blue ocean is based on value innovation rather than technological breakthroughs. It is based on the reordering and construction of existing market realities rather than conjectures and predictions of future markets. Enterprises can pursue it in a systematic and replicable way;

"Blue ocean" can appear outside the boundaries of existing industries, or it can sprout in the existing "red ocean" of industries.

short answer questions

Red Ocean Strategy (Competition) Blue Ocean Strategy (Value) Compete within an already existing market Expand non-competitive market space compete avoid competition Capture existing needs Create and capture new needs Follow the law of interchange between value and cost Breaking the law of mutual exchange between value and cost Integrate corporate behavior into a system based on strategic choices of differentiation or cost leadership At the same time, pursue differentiation and low cost, and integrate corporate behavior into a system

Principles of Strategy Formulation Risk factors reduced by each principle Rebuilding market boundaries Reduce search risk Focus on the big picture rather than the numbers Reduce planning risks Go beyond existing needs Reduce the risk of scale Follow a sound strategic sequence Reduce business model risk Strategy Execution Principles Risk factors reduced by each principle Overcome key organizational barriers Reduce organizational risk Make execution part of the strategy Reduce management risk

Subjective questions

Very important

Path 1: Examine alternative industries

Path 2: Across different strategic groups within the industry

Path 3: Redefine the industry’s buyer groups

Path 4: Look at complementary products or services

Path Five: Reset the Function and Emotional Orientation of the Industry

Path 6: Participate in shaping external trends across time