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Culture Documents
Strategy
Notes
Blue
Ocean
Strategy
Simulation
Game
Table
of
Contents
All
of
this
is
included
in
the
actual
notes
Red
Round
and
Blue
Round
1
..................................................................................................................
2
Strategy
...............................................................................................................................................
2
Year
41
............................................................................................................................................
3
Year
42
............................................................................................................................................
3
Year
43
............................................................................................................................................
4
Year
44
Blue
Round
1
...................................................................................................................
4
Assumptions
........................................................................................................................................
5
Red
Rounds
.....................................................................................................................................
5
Blue
Round
1
...................................................................................................................................
6
Performance
........................................................................................................................................
7
Blue
Round
2
............................................................................................
Error!
Bookmark
not
defined.
Strategy
................................................................................................
Error!
Bookmark
not
defined.
Assumptions
.........................................................................................
Error!
Bookmark
not
defined.
Performance
.........................................................................................
Error!
Bookmark
not
defined.
Blue
Rounds
3
..........................................................................................................................................
7
Strategy
................................................................................................
Error!
Bookmark
not
defined.
Assumptions
.........................................................................................
Error!
Bookmark
not
defined.
Performance
........................................................................................................................................
7
1
Red
Round
and
Blue
Round
1
Strategy
Our
team
met
in
the
library
again
to
complete
the
BOSS
game,
this
time
I
booked
the
pod,
using
my
newly
acquired
skill.
Before
starting
the
game
we
gathered
our
thoughts,
I
recounted
some
of
the
advice
that
our
seminar
leader
had
given
us,
and
we
recapped
the
red
ocean
strategy
document,
and
discussed
where
we
went
wrong
in
the
practice
round.
Our
team
decided
on
a
different
strategy
than
the
practice
round,
deciding
to
target
the
only
growing
segment:
the
36+
year
olds,
as
seen
in
the
market
forecast
graph
in
Figure
2
below:
Figure
1:
Market
forecast
graph
-
red
rounds
and
blue
round
1
Prior
to
starting
the
red
rounds
and
blue
round
1
had
made
some
tables
to
summarise
the
data
so
it
would
be
easier
for
us
to
make
decisions.
I
personally
find
it
easier
to
read
all
the
information,
then
to
analyse
the
information
and
make
graphs
or
tables
that
are
easy
to
understand.
Ive
found
that
this
helps
me
make
decisions
quicker.
See
Figures
3
&
4
below:
Customer
Segments
Product
Features
Jun-21
22-35
36+
Price
highly
sensitive
sensitive
not
price
sensitive
Console
power
(sophistication
of
X
X
gaming
experience)
Graphics
sophistication
X
Controller
Sophistication
X
X
Multimedia
add-ons
X
Quality
of
online
support
X
2
Online
gaming
X
X
Figure
3:
customer
preferences
of
product
characteristics
and
customer
segments
-
red
rounds
and
blue
round
1
The
xs
in
the
tables
above
indicate
what
characteristics
the
customer
segments
value.
These
were
really
helpful
for
the
team,
in
particular
for
when
we
were
making
decisions
on
what
characteristics
and
channels
to
increase
and
decrease.
So,
after
analysing
the
key
data
we
decided
to
get
stuck
into
the
game,
starting
with
product
characteristic
alteration
first,
creating
an
eliminate,
reduce,
raise,
and
create
(ERRC)
grid
to
reflect
our
targeting
strategy.
We
decided
to
use
this
so
we
could
practice
using
blue
ocean
tools
so
that
wed
be
ready
for
the
blue
rounds,
only
using
the
reduce
and
raise
boxes
for
the
red
rounds,
but
still
drawing
up
the
full
grid.
What
we
came
up
with
for
each
of
rounds
the
can
be
seen
below.
Year
41
Eliminate
Reduce
Not
applicable
as
this
is
not
a
blue
round.
No.
of
consoles
produced
due
to
decreased
market
demand
as
a
whole
Raise
Create
Sophistication
of
gaming
experience
Not
applicable
as
this
is
not
a
blue
round.
increase
to
7
to
beat
the
shiny
station
Graphics
sophistication
increase
to
190
as
this
characteristic
is
poorly
rating
at
present
and
the
purple
player
is
224
Quality
of
online
support
increase
to
70
to
match
the
purple
player
Price
increase
to
$475
as
our
product
is
now
much
more
enhanced
Year
42
Eliminate
Reduce
Not
applicable
as
this
is
not
a
blue
round.
Online
gaming
No.
of
consoles
produced
due
to
decreased
demand
Raise
Create
Sophistication
of
gaming
experience
Not
applicable
as
this
is
not
a
blue
round.
increase
to
9,
to
match
the
shiny
station
Graphics
sophistication
increase
to
200,
this
is
a
gradual
increase
to
the
maximum
level
planned
for
year
43
Quality
of
online
support
increase
to
80
to
beat
the
purple
player
and
be
the
best
in
the
market
for
online
support.
Price
increase
to
$500
to
reflect
the
increased
characteristics.
Our
product
provides
the
best
value
for
money
on
most
product
characteristics
valued
by
36+
year
olds.
Year
43
Eliminate
Reduce
Not
applicable
as
this
is
not
a
blue
round.
No.
of
consoles
produced
due
to
decreased
demand
Raise
Create
Sophistication
of
gaming
experience
Not
applicable
as
this
is
not
a
blue
round.
raise
to
10
so
we
now
have
the
most
sophisticated
gaming
experience
in
the
market
Graphics
sophistication
raise
to
the
maximum
so
we
match
shiny
station
Quality
of
online
support
raise
to
the
maximum
to
provide
value
to
the
36+
segment
Price
increase
to
$520
to
reflect
our
outstanding
characteristics,
but
still
be
the
cheapest
of
the
top
consoles
Our
strategy
was
to
increase
the
attributes
that
the
36+
year
olds
valued,
and
copy
the
purple
player.
We
didnt
reduce
many
of
our
product
characteristics
in
the
round,
because
we
didnt
want
the
characteristics
to
be
dramatically
below
other
consoles,
even
though
we
were
predominantly
targeting
the
36+
aged
segment,
we
realised
that
they
were
not
the
only
age
group
that
would
be
purchasing
our
product
in
reality.
In
addition,
we
kept
in
mind
that
red
round
consumers
want
more
for
less,
so
providing
extra
characteristics
is
necessary
to
compete.
We
gradually
increased
the
characteristics
valued
by
our
target
segment
over
years
41
to
43,
finishing
the
red
rounds
with
a
product
that
was
cheaper
than
the
two
top
end
products
that
targeted
36+
year
olds;
the
Purple
Player
and
the
Shiny
Station.
As
a
group
we
decided
to
manage
our
expenditure,
spreading
it
evenly
over
the
years,
always
using
a
large
portion
of
our
budget.
In
the
years
where
we
invested
heavily
in
R&D
for
the
console,
we
didnt
initiate
any
corporate
projects,
then,
in
the
years
where
we
initiated
corporate
projects
we
didnt
raise
the
product
characteristics
so
dramatically.
This
can
be
seen
as
we
gave
the
consoles
characteristics
an
overhaul
in
year
41,
positioning
it
towards
the
36+
years
old
segment,
then
in
year
42
we
made
minimal
changes
to
the
product
characteristics
and
initiated
a
corporate
project
aimed
at
reducing
COGS.
4
Figure
4:
As-is
strategy
canvas
formation
result
After
the
as-is
strategy
canvas
was
constructed
we
were
able
to
get
to
work
filling
out
the
EERC
grid
in
the
BOSS
game
to
meet
the
requirements
of
path
3,
creating
our
to-be
strategy
canvas
as
seen
in
Figure
6.
Figure
5:
Blue
round
1
to-be
strategy
canvas
Assumptions
Red
Rounds
We
assumed
that
the
36+
aged
segment
would
be
the
best
segment
to
target
as
it
was
the
only
growing
segment,
and
that
the
market
projections
provided
were
accurate
and
reliable.
We
also
assumed
that
the
demand
level
would
continue
to
drop
as
we
are
competing
in
the
red
ocean.
We
had
some
difficulty
figuring
out
the
right
amount
to
produce.
We
tried
to
5
estimate
the
amount
to
produce
based
on
the
decline
between
the
prior
years,
as
seen
in
Table
1
below:
Table
1:
Calculating
amount
to
produce
Year
40
Year
39
Number
of
consoles
sold
(thousand
units)
2,279
2,628
Difference
between
the
years
(thousand
units)
-
349
Difference
between
the
years
(percentage)
-13%
Number
of
units
to
produce
in
Year
41
(thousand
units)
1,976
Year
41
Year
40
Number
of
consoles
sold
(thousand
units)
1,513
2,279
Difference
between
the
years
(thousand
units)
-
766
Difference
between
the
years
(percentage)
-34%
Number
of
units
to
produce
in
Year
42
(thousand
units)
1,004
Year
42
Year
41
Number
of
consoles
sold
(thousand
units)
1,359
1,513
Difference
between
the
years
(thousand
units)
-
154
Difference
between
the
years
(percentage)
-10%
Number
of
units
to
produce
in
Year
43
(thousand
units)
1,221
We
finally
got
the
amount
to
produce
right
in
year
42,
having
a
minimal
variance
of
154,000
units.
Another
assumption
we
made
was
that
we
would
need
to
spend
a
lot
on
marketing
as
we
had
just
given
the
console
an
overhaul,
focusing
on
the
36+
segment.
We
assumed
that
by
increasing
marketing
expenditure
brand
awareness
would
increase,
and
then
that
sales
would
follow.
We
also
assumed
that
it
would
be
best
to
implement
the
manufacturing
cost
reduction
corporate
project
after
we
had
improved
the
product.
Our
thoughts
were
that
if
we
increased
the
cost
to
make
the
product
through
increasing
product
features,
then
we
would
be
able
to
decrease
this
by
moving
manufacturing
overseas.
Blue
Round
1
Our
first
assumption
in
Blue
Round
1
was
that
the
paths
given
in
the
game
were
the
only
possible
paths,
and
had
to
be
chosen
individually.
We
did
not
consider
the
possibility
of
combining
two
paths
until
Blue
Round
2,
which
set
us
behind
a
year
on
our
new
strategy.
Our
second
assumption
was
that
we
shouldnt
eliminate
factors,
in
case
our
customers
value
them
a
little
bit.
This
was
another
error
on
our
part,
we
realised
in
Blue
Round
2
that
we
need
to
eliminate
factors
in
order
to
reduce
our
cost
of
production.
If
the
game
says
that
the
segment
does
not
value
the
factor,
then
we
do
not
need
produce
a
console
that
has
that
feature;
its
a
waste
of
our
budget.
6
Performance
Overall
our
team
performed
much
better
in
the
red
round
than
we
did
in
the
practise
round.
We
were
disappointed
with
our
Share
Price
Index
(SPI)
because
it
dropped
since
we
started
the
Red
Round,
and
ended
up
around
800.
In
order
to
improve
in
the
future
our
team
would
make
sure
that
all
our
product
characteristics
in
the
red
round
are
valued
by
the
36+
segment.
We
would
also
make
sure
that
our
choice
in
distribution
channels
reflects
this
segmentation
strategy,
and
then
decrease
our
overall
production
volume
each
year,
aiming
for
no
production
to
sales
variance.
To
improve
our
performance
in
the
blue
round
we
would
make
sure
that
we
read
all
the
information
and
synthesize
it,
spending
a
long
time
discussing
options
before
making
decisions.
Finally,
our
performance
could
be
improved
by
looking
across
non-customer
groups
for
commonalities.
Performance
On
checking
our
errors
and
warnings
before
submitting
our
new
strategy
decisions
we
found
that
this
was
our
first
year
that
the
sign
was
actually
green,
meaning
good,
so
we
felt
confident
that
we
were
making
good
decisions.
On
viewing
our
results
we
were
proud
to
see
that
our
SPI
had
increased
again,
and
our
market
share
was
substantial,
as
seen
in
Figure
15
below.
Figure
6:
Blue
round
3
year
47
results
Our
new
blue
ocean
strategy
for
delivery
and
service
was
a
success,
the
whole
team
was
really
happy
with
our
results.
We
finished
on
a
SPI
of
1,908,
and
having
created
a
successful
blue
ocean
offering.
7
In
order
to
improve
in
the
future,
we
would
improve
the
quality
of
online
support
in
the
first
to-be
strategy
canvas,
in
order
to
not
disappoint
customers.
In
addition,
we
would
implement
corporate
projects
only
in
the
first
year
of
Blue
Round
3,
so
that
all
corporate
project
results
are
received
before
the
last
year.