1. Blue Ocean Strategy-Appendix A,B,C
Michal Medrano
Casey Harvey
Mason Stone
Julio Garcia
Courtney Ellis
Glen Lesly
Travis Tempel
Roberto Padilla

2. Key Topics: Open New market Space
Value Innovation- Linked to what buyers value
Competition
Buyer Value at an accessible price
Two Distinct Views on Industry Structure
Structuralist Strategies
Reconstructionist Strategy
Reconstruction & Recombination
Market Dynamics of Value Innovation Appendix C
Monopolies

3. Automobile Industry The Model T Started back in 1893
Woodrow Wilson said " the horseless carriage at the present is a luxury for the wealthy. It will never come into consumer use as the bicycle.
The Model T
Henry Ford
Revolutionary Assembly Line
Market Share rose from 9% in 1908 to 62% in 1921

4. General Motors
1924
Strategy- Produce a car for every purse and purpose
Buyers trade up for fashion and comfort

5. Japanese Jump Into Blue Ocean Opportunity
Small, Fuel Efficient cars
Cars made were the Honda, Toyota, and Nissan
Oil Crisis in the 1970's, Consumers flocked the Japanese cars
Chrysler
On edge of bankruptcy
Introduce the minivan
Ignites SUV market

6. Two Distinct Views on Industry Structure
Structuralist View – Has its roots in industrial organization economics
Industrial Organization
Reconstructionist View – built on theory of endogenous growth
Joseph A Schumpeter

7. Structuralist Strategies
Structuralist – important implications often leads to competition-based strategic thinking. Leads to deciding whether or not to enter.
Leads firms to divide industries into attractive and unattractive one.
Decide whether or not to enter.

8. Reconstructionist Strategy
Recognizing that structure and market boundaries.
Managers & Practitioners do not let this view limit their thinking
Creating Demand
Reordering existing elements

9. Reconstruction & Recombination
A change in market structure
Stimulating the demand side
Cirque de Soleil
Reconstructing existing buyer value elements
Reconstruction & Recombination

10. Market Dynamics of Value Innovation Appendix C
Value innovation vs. technology innovation
Value innovation rapidly increases demand
Lowers price and long run average costs
UnderArmour
Submit and Idea

12. Monopolies Harm social welfare
Charge high prices that exclude consumers
Waste society’s resources-deadweight loss

14. Conclusion: Auto Industry Structuralist Reconstructionist
Value Innovation and Monopolies