Blue Ocean Strategic Sequencing in Office Furniture
Seth Jones, Teacher, USA
I am working on a Blue Ocean strategy for a course I am taking, and am hoping to get a bit of input on what I have developed for its sequencing.
My goal is to take a fictitious office furniture manufacturing and sales company out of the red and into the blue by changing the way the company deals with customers.
Instead of offering one size fits all solutions, Ironseat, the company in question, would work with purchasers to establish “fittings” during which employees would be able to try out a number of seating solutions selected by the purchasers to find the one that best suits them.
Additionally, Ironseat would simultaneously offer complimentary items that further assist in the creation of an ergonomically healthy workplace. The goal is to increase buyer utility by offering the potential of reduced repetitive stress injuries and ergonomics issues by giving each user a custom, tailored solution. My sequencing is as follows:
- Buyer utility: By offering customers the ability to custom order seating and ergonomic accessories for each employee, customers can be sure their employees have workable ergonomic solutions that suit their needs. Offering something unavailable from standard furniture sales agents, Ironseat brings their customers a level of utility far and above what they have come to expect from office furniture sales.
- Price: Pricing for individual items is only marginally more expensive than the industry average, allowing for the coverage of extra personnel costs due to more in depth user consultations. Though this idea does reflect a slight increase in initial cost to the customer, it does not create a barrier to entry. Furthermore, with the additional value offered by Ironseat via their highly customized ergonomic solutions (leading to lower occurrences of repetitive stress injuries and ergonomically generated pains) any additional costs are offset by long term savings in medical costs and lost productivity.
- Cost: With personnel costs rising by a fair bit, savings will need to be made to ensure Ironseat can maintain profitability with its selected strategic price. To meet this requirement, Ironseat will need to investigate new methods of design and construction in an effort to reduce unit cost.
- Adoption: The three levels of stakeholders must be accounted for to ensure a strong level of adoption. First, the new strategy must be explained to the employees. There exists a potential issue here, particularly with the sales force. With a myriad of new requirements being piled on the sales side, there is a reasonable expectation that there will be push back from the sales force. With this in mind, it is imperative that the benefits of this new strategy be thoroughly explained to the sales force in order to gain their buy-in.