1. BLUE OCEAN STRATEGY SIMULATION ROUND BLUE-2 DEBRIEF
Theory by
W. CHAN KIM & RENEE MAUBORGNE
Design and Development by

2. TEAM BLUE OCEAN OFFERINGS
I will first briefly introduce the STRATX Company.
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3. REFINEMENT OF BLUE OCEAN OFFERINGS
Let´s take a look at your refined offerings and discuss which factors you decided to eliminate, reduce, raise and create and why?
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4. REFINED STRATEGY CANVAS – TEAM ALBATROSS
Which factors did you decide to eliminate, reduce, raise and create and why?
Length and complexity of games
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5. REFINED STRATEGY CANVAS – TEAM BUFFALO
Which factors did you decide to eliminate, reduce, raise and create and why?
Pleasant design
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6. REFINED STRATEGY CANVAS – TEAM COUGAR
Which factors did you decide to eliminate, reduce, raise and create and why?
Why not exer-gaming and exer-tainment?
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7. REFINED STRATEGY CANVAS – TEAM EAGLE
Which factors did you decide to eliminate, reduce, raise and create and why?
Rowing wireless function
Why not simplicity and ease of starting games AND playing familiar games?
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8. BASE UNIT COST COMPARISON
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9. ACTUAL UNIT COST COMPARISON
Blue Box actual unit costs depend on:
Corporate projects that were initiated
Accuracy of production planning
Volume produced in each period
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10. ALL TEAMS HAVE DRAMATICALLY DECREASED DEVELOPMENT COST
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11. ALL TEAMS HAVE ADJUSTED THEIR PRICE DOWN TO ATTRACT THE MASS
EAGLE INCREASED PRICE IN YEAR 45 – WHY?
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12. FORECASTING PRODUCTION FOR NEW OFFERING IS DIFFICULT
~ 2100 sold
~ 840 sold
Buffalo and Eagle sales higher than forecasted
~ 330 sold
~ 250 sold
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13. TO-BE STRATEGY CANVAS – GEOGRAPHICAL COVERAGE DECISION
A few teams are ahead of the other ones in term of Geographical Expansion. This depends on how fast each team designed a good solution to create demand, generate revenues and get increase in budget
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14. TO-BE STRATEGY CANVAS – MARKETING DECISION
To be successful Marketing spending must be in line with Geographical Expansion
Cougar leading in both.
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15. TEAM RESULTS I will first briefly introduce the STRATX Company.
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16. NO BIG DIFFERENCES IN TERMS OF MARKET SIZE
+44% #1
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17. BUFFALO STRIKES OUT IN GROWING BLUE BOX SALES

18. RED BOX SALES STILL HIGHER THAN BLUE BOX SALES

19. TEAM TOTAL SALES EVOLUTION#1

20. TWO IMITATIONS HAVE BEEN LAUNCHED BLUE CONSOLE SALES IN CURRENT YEAR
ALL TEAMS HAVE CREATED A BLUE OCEAN ATTRACTIVE ENOUGH TO ATTRACT LOW COST IMITATORS INTO THE MARKET – THE SALES OF IMITATORS VARY
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21. BLUE PACK IS LAUNCHED BY LOW COST COMPETITOR
ALL TEAMS HAVE CREATED A BLUE OCEAN ATTRACTIVE ENOUGH TO ATTRACT LOW COST IMITATORS INTO THE MARKET – THE SALES OF IMITATORS VARY
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22. BLUE BOX EBIT EVOLUTION (IN M$)#1
ONLY BUFFALO HAS POSITIVE BLUE BOX EBIT
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23. RED BOX EBIT EVOLUTION (IN M$)
COUGAR HAS VERY HIGH RED BOX EBIT #1
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24. BLUE BUDDIES TOTAL EBIT EVOLUTION#1
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25. BLUE BUDDIES SHARE PRICE INDEX#1

26. AVERAGE SPI SCORES AT END OF ROUND BLUE-2
Buffalo
Cougar & Albatross
Eagle
17/04/ * The results on this chart have been compiled by analyzing all BOSS courses run in 2008 and 2009
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27. ROUND BLUE-2 KEY LEARNING POINTS
I will first briefly introduce the STRATX Company.
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28. LEARNING POINTS FROM ROUND BLUE-2
Searching for commonalities across noncustomer groups allows organizations to see how to collapse Strategy Canvases and capture a far greater share of noncustomers than would creating a strategic offering for a single large group of noncustomers
By reconstructing market boundaries and focusing on the Four Actions Framework of Eliminating, Reducing, Raising and Creating, organizations are able to achieve differentiation and low cost – these are no longer tradeoffs.
In reality, organizations may not get the Strategy Canvas right the first time, due to the traditional practice of most companies of ‘Raising’ and ‘Reducing’ their offering level along the traditional factors of competition.
The importance of Strategic Pricing and the price corridor of the mass is highlighted. It is crucial set the right strategic price at the first moment of market entry to capture the mass of buyers.
There are many cases where the failure to price strategically has led to demand remaining locked, and a lack of pressure on new entrants and competitors – e.g. the first mobile phones, the X-box.
Organizations will traditionally price too high when they have an innovation of any sort believing that their innovation has created a differentiation desired in the market.
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