Post on 11-Apr-2017
transcript
Exsilio™ Consultancy HOW TO CREATE UNCONTESTED MARKET SPACE
AND MAKE THE COMPETITION IRRELEVANT
Exsilio Consultancy
We Specialize in Blue Ocean Strategy Tools and Methodology
CreaCng uncontested market space
Exsilio Consultancy
1. Reconstruct market borders for size! 2. Redraw strategic (compe@@ve) profile of your industry! 3. Apply differen@a@on and low cost simultaneously!
4. Define excep@onal buyer value, strategic pricing and cost innova@on! 5. Exsilio brainstorming sessions for your guidance 6. Example: Curves US fitness gym
Value Innova@on open profitable uncontested markets for an early acceptance and solid growth
Reconstruct the market borders for size Value innova@on convert non-‐customers into new market demand / Cirque de Soleil
Exsilio Consultancy
1st Tier: “Soon-‐to-‐be” noncustomers who are on the edge of your market (Pret-‐a-‐Manger) 2d Tier: “Refusing” noncustomers who consciously choose against your market (JCDecaux) 3rd Tier: “Unexplored” non customers who are in markets distant from yours. (US aerospace)
Market 1st
2nd
3rd
FOR BIGGEST CATCHMENT CHOOSE • Non-‐customers before customers
• Commonali?tes before differences
• Desegmenta?on before finer segmenta?on
CreaCng uncontested market space
APSA
Preparing for an early market acceptance based on value innova@on / what does the customer really want?
Exsilio Consultancy
High
Low
Price
Ameni@es
Workout equipment Workout
@me
Availability of instructors
Environment encouraging mo@va@on
Non-‐treathening same-‐sex environment Convenience
Womanly fun athmosphere
Home excercise program
Tradi@onal health clubs
Curves
Compe&&ve factors
Offe
ring level
The E-‐R-‐R-‐C grid / Cirque du Soleil
ELIMINATE (overdesigned?) RAISE (no compromises) • Star performers * Price • Animal shows * Unique venue • Aisle concession sales • Mul@ple show arenas
REDUCE if useless CREATE sources of value • Fun and humour * Theme • Thrill and danger * Refined environment
* Mul@ple produc@ons * Ar@s@c music and dance
1. Redraw strategic profile of selected industry
2. Reconstruct buyer value elements in craNing a new value curve
3. Break the trade-‐off between differenSaSon and low cost
COST FAC
TORS
BUYER VALU
E
Divergent factors
Courtesy Yip & Lieu
Exsilio Consultancy
Exsilio Management Sessions Systema@c development and execu@on of a business model to generate uncontested market space
Exsilio Consultancy
v Focus on the big picture and not the numbers for a winning market crea@ng strategy. Define the As-‐Is Strategy.
v Reconstruct your market borders to maximise your market poten@al .
v Building a new business model for the To-‐Be Strategy
v Execu@on and visual communica@on of the strategy.
v Sustainability and renewal of Blue Ocean Strategies.
Excep@onal Buyer Value – Strategic Price – Cost innova@on
Example ”Curves”
Market / problem: ◦ The awerage woman in the USA alianated herself from tradi@onal fitness gyms. ◦ They became non-‐users or preferred excersising at home.
◦ The market was considered to be oversaturated.
Curves soluSon: ◦ Curves moved out to ask the non-‐users for their reasons for not ahending conven@onal gyms.
◦ Eventually an untapped market was created allowing for social interchange and more lady privacy.
◦ Mirrors where removed, machinery was exchanged for hydraulic versions easy to use.
◦ Service was reduced but focussed on the true need of the customer.
◦ Lower costs allowed for reduced pricing that opened up a market for a broad mass of women.
Exsilio Consultancy
Curves uncontested market space
APSA
Preparing for an early market acceptance based on value innova@on / what does the customer want?
Exsilio Consultancy
High
Low
Price
Ameni@es
Workout equipment Workout
@me
Availability of instructors
Environment encouraging mo@va@on
Non-‐treathening same-‐sex environment Convenience
Womanly fun athmosphere
Home excercise program
Tradi@onal health clubs
Curves
Compe&&ve factors
Offe
ring level
Example Curves: The Result
Exsilio Consultancy
² Start-‐up costs reduced to a fracSon.
² Variable costs considerably reduced.
² This affordable franchising turned even quickly.
² Worlds largest women’s fitness franchise.
Courtesy: Yip & Lieu
Exsilio Makes a Difference
APSA
We move (high-‐tech) SME’s from market compe@ng to market crea@on business models
ü We evaluate your corporate strategic intent, help analyzing your compeSSve environment and defining the
innovaSve values of your business for the strategy to-‐be. ü We assist in developing a business model to open up high poten@al uncontested market space with an early
market acceptance and profitable growth of the business. ü Opera@vely we can take part in the search and selec@on of strategically right partners for your choice. ü We also support change management and other opera@ve tasks within your interna@onaliza@on process.
We specialize in Blue Ocean Strategy tools and methodology
Exsilio Consultancy
Board membership – Consultancy projects – Team membership
Thank you for your interest
Exsilio Oy E-‐mail: thomas.tapio@exsilio.fi www.exsilio.fi Courtesy: W.C. Kim & R. Mauborgne