LEONEE A. VILUAN
BSMA - 4
RED OCEAN STRATEGY
The red ocean represents the existing market space. Companies in red oceans most often pursuecompetitive-based strategies, aiming to get a bigger share of the market from their competitors - thus the bloody competition - red ocean metaphor. This approach is called the structuralist view of strategy, meaning that companies adapt their behavior (strategy) to the existing industry's conditions. However, this approach is limited. Due to globalization, lowering cost of production and availability of information, the competition is more fierce some than ever in most industries, putting more pressure on companies and shrinking their profit margins. In this competition race, products and services tend to become commoditized much faster. BLUE OCEAN STRATEGY
The blue oceans are new markets created by companies following conscious strategic decisions. The creation of a new market space gives companies a natural monopolistic position, which the company can take advantage from. This is called the reconstructionist view of strategy, meaning that companies recreate the boundaries of an industry (which are mental barriers, anyway), as a result of the strategy they pursue. However, Blue Ocean Strategy does not encourage companies to behave monopolistically, as it will hurt them in longer term. Instead, companies must price their service/product strategically, to win a mass of buyers, which results in a win-win situation for the buyers (value proposition), for the company (profit proposition) and for the employees (people proposition).
DIFFERENCES OF BLUE OCEAN AND RED OCEAN STRATEGY
1. You want to be able to attract new customers to the business, instead of concentrating on only the current customers. This can be hard to do, so many business owners don't even try; instead, they rely on their current customers, which means they are using the red ocean concept. With the blue ocean concept, concentrating on new customers is used.
2. In the red ocean, there are a lot of businesses competing against each other for the current markets. In the blue ocean, new markets are created to serve, which means there is little or no competition.
3. With the red ocean, the competitions immaterial because there is no one that can easily duplicate the ideas that will allow for commercial success. The blue ocean strategy is just the opposite; there is high value for a lower cost.
5S of Japanese Housekeeping
Seiri Sorting/Putting things in order (remove/discard what is not needed so that there are fewer hazards and less clutter to interfere with work. Only keep what is needed.) Seiton Orderliness/Proper Arrangement (Place things in such a way that they can be easily reached whenever they are needed. "There must be a place for everything, and everything must be in its place.") Seiso Clean/cleanliness. (Keep workplace and things clean and polished; no trash or dirt in the workplace) Seiketsu Standardize/Purity (Maintain cleanliness after cleaning, consistently- perpetual cleaning. Such cleaning is part of every one's work.) Shitsuke Sustaining/discipline/commitment (Maintaining standards and keeping the facility in safe and efficient order day after day, year after year.)
The individual items within 5S are known as the "pillars" and are:
1. 5s Seiri (Sort)
Seiri is the identification of the most successful physical Organisation of the workplace. It has been variously anglicised as Sort, Systematisation or Simplify by those wishing to retain the S as the initial letter of each element. It is the series of steps by which we identify things which are being held in the workplace when they shouldn't, or are being held in the wrong place. Put simply, we may identify a large area devoted to tools or gauges, some of which are needed regularly and some used infrequently. This brings all sorts of problems, including: * Operators unable to find the item they need, being unable...
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