What is a Strategic Sequence?

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Blue Ocean Strategy > Best Practices > What is a Strategic Sequence?

What is a Strategic Sequence?
Stephanie Rodriguez, Member
According to Kim and Mauborgne (2005) a BOS will only work if itís formulated in the right strategic sequence. Without fulfilling one of these, the plan will fail. The sequence laid out by the authors is Buyer Utility, Price, Cost, and Adoption:
1. Buyer Utility. There must be substantial reasons for the public to want to purchase the products of the company before advancing to the next step within a Blue Ocean Strategy (price).
2. Price must be attractive to the customers in order for demand to increase. The right price encourages the customer to want to purchase the product and this increases the companyís presence.
3. Cost. It is important to target the majority of buyers, but also ensure the company makes a profit.
4. Adoption. Lastly and to complete the sequence, there is adoption, which is the marketing (Promotion) of the companyís ideas. The company needs to prepare itself for any rejection from the industry as customers are not easily swayed by a bargain.
 

 
Strategic Sequence of Blue Ocean Strategy
Joseph Reeser, United States, Member
Indeed,
1. The first step in the right strategic sequence is understanding buyer utility and the value a product brings to customers.
2. The second step in the strategic sequence is to setting the right price. Too high of a price will turn your customers off and have them looking for a more affordable value. These first two steps directly impact revenue and now we need to talk about the third step in this process, cost.
3. determining cost to your company along with price your selling to customers and buyer utility directly leads to profits.
4. Finally, the last step in our strategic sequence is to understand adoption hurdles. Adopting and overcoming hurdles is crucial for a business to succeed because Blue Ocean strategies bring new ideas to the market.
 

 
Blue Ocean Strategy Sequencing
sharleen, Student (University), United States, Member
Indeed,
1. The first step in the sequence of BOS is buyer utility, this is the reasons why people should buy the product. Without logical reasons why this product will benefit customer it will not move to the second step price.
2. The price needs to set at the right price not to high or low it needs match up to the expectations of the product be affordable.
3. The third step is cost, can the product be sold at a target cost and still being in a reasonable profit.
4. The last step is adoption, this is the possible hurdles the company will face when trying to pitch the product to investors.
 

 
What is the Right Price in the Strategic Sequence?
Gaurav Bajaj, Student (MBA), United Kingdom, Member
There is a lot of reference about setting the right price. But what is the right price at which the product must be marketed and how can it be determined?
I think the right price is a very subjective term. Over the years I think it is about the experience that a product provides to a customer and if that is achieved a company can charge a high price for the product.
Anymore thoughts on this please?
 

 
The Right Price in the Strategic Sequence
Vivek Hattangadi, Management Consultant, India, Member
The right Price is aligned with MARKET DYNAMICS and BUYER UTILITY.
Does your product have an exceptional utility and a compelling reason for the customer to buy it? If the answer is yes go in for a high price, yet affordable to a great mass of customers.
If there is no compelling reason to buy, then there is no Blue Ocean potential.
 

     
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