Mohamed Fouda

Growth/Innov ation New Brand Development Managing Costs Assets utilization Future Strategy Operational Efficiency Corporate Brand Cycle times Logistics Global Reach Creativity Methods Quality Control

Growth/Innov ation New Brand Development Managing Costs Assets utilization Future Strategy Operational Efficiency Corporate Brand Cycle times Logistics Global Reach Creativity Methods Quality Control

Innovation RandomSystematic EntrepreneurPattern Trial & error – learning from failureTheory & methodologies Opportunities & risks come togetherRisk minimization with opportunity maximization DNA/CultureAnalytical Frameworks Units of experimentation subsystem approach Systems Strategic Alignment Schumpeterian InnovationBlue Ocean Strategy

History of Blue Ocean Creation 150 blue ocean creations More than 30 industries Over 100 years ( )

86%14% 62%38% 39%61% Business Launch Revenue Impact Profit Impact

Video Gaming Industry

Nintendo Wii Profitable Growth with new demand creation We’re not competing against sony or microsoft. We are battling the indifference of people who have no interest in videogames. We want to appeal mothers who don’t want consoles in their living rooms, and to the elderly and to young women Satoru Iwata....Nintendo President

Nintendo Wii - Results Has been selling at rate of one unit per second since its launch on 19 th of November 2006 till December Zipped past sony in market value in June 2007 and became one of japan’s top ten companies for the first time. While sony loses 240$-300$ on each PS3 sold, nintendo makes 50$ on every unit. Profits reached almost $1.5B or $442,000 per employee in 2007, compared to microsoft’s $177,000 & google’s $288,000.

Blue Ocean Strategy Propositions Value Proposition Profit Proposition People Proposition

Red Ocean StrategyBlue Ocean Strategy Compete in existing market spaceCreate uncontested marketspace Exploit existing demandCreate & capture new demand Either differentiation OR low costDifferentiation & low cost Segment the MarketDe-segment the market Strategy execution follows formulationStrategic Alignment

Formulation PrinciplesFormulation Risks Reconstruct Market BoundariesReduce Search Risk Focus on big picture, not the numbersReduce Planning Risk Reach beyond existing demandReduce Scale Risk Get the strategic sequence rightReduce Business model risk Execution PrinciplesExecution Risks Overcome key organizational hurdlesReduce Organizational risk Build execution into strategyReduce Management Risk

What factors should be eliminated that the industry has taken for granted? Eliminate What factors should be reduced well below the industry standard? Reduce What factors should be created that the industry has never offered? Create What factors should be raised well beyond the industry standard? Raise

How Blue is your strategy? Exceptionally high value at drastically low cost? Creating new demand instead of striving to do better than competitors? Looking for noncustomers instead of getting bigger share of customers? Challenging assumptions & reconstructing industry & market boundaries? Pursuing desegmentation instead of finer segment? Focused on widely shared needs instead of differntiating needs? Executing strategy while conserving time & resources?