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Case Studies by Oh Young Koo

13 case studies

by Publication Date
published: 22 Mar 2019

  • Topic: Strategy
  • Region: Asia

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Abstract:
This highly popular exercise allows participants to actually apply the concept, frameworks, and process of blue ocean shift to one of the most competitive industries – the travel industry. Using worksheets, participants will take a step-by-step approach to systematically shift their strategic logic from competing to creating and apply the processes and tools of blue ocean shift to the travel industry. The case includes a real-life example of a successful blue ocean shift in the travel industry and is accompanied by a firsthand video interview with Dong Gun Lee, CEO of My Real Trip, a Korean company that challenged the travel industry’s long existing assumptions to open new market space.

Pedagogical Objectives:
The case consists of three parts: 1) Part A is a short case that looks into the competitive landscape of the travel industry in Korea and ends with the challenging question to participants to create their own blue ocean strategy. 2) A Blue Ocean Shift Exercise is conducted in the classroom using accompanying worksheets. Participants follow the process of blue ocean shift using the Buyer Utility Map, Noncustomer Analysis, the Six-Path Framework, the E-R-R-C Grid, and the To-Be Strategy Canvas to create their own blue ocean strategy. 3) Part B provides an example of creating a new market space in the travel industry in 2012 in Korea - My Real Trip. This theory-based video case narrates how My Real Trip reconstructed the market boundaries and created new demand in the crowded and divided travel industry. The strategic move can be discussed in the classroom using the lecture slides that accompany this case.

Keywords:
Blue Ocean Strategy, Blue Ocean Shift, Sharing Economy, Travel Industry, Korea, Entrepreneurship, Start-Up, Strategy Formulation, Workshop, Market Creation, Exercise, Innovation

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published: 22 Aug 2018

  • Topic: Strategy
  • Industry: Travel Industry
  • Region: Asia

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Abstract:
The case is a combination of strategy formulation exercise and case method. It consists of three parts: 1) Part A looks into the competitive landscape of the travel industry in Korea and ends with the challenging question to participants to create their own blue ocean strategy as a group work. 2) Blue Ocean Shift Exercise is conducted in the classroom using the worksheets. It provides detailed information in a pre-set format. Participants follow the process of blue ocean shift using the Buyer Utility Map, the Noncustomer Analysis, the Six-Path Framework, the E-R-R-C Grid, and the To-Be Strategy Canvas to create their own blue ocean strategy. 3) Part B provides an example of creating a new market space in the travel industry in 2012 in Korea—My Real Trip. This theory-based video case narrates how My Real Trip reconstructed the market boundaries and created new demand in the crowded and divided travel industry. The strategic move can be discussed in the classroom accompanied by lecture slides.

Pedagogical Objectives:
1. To show how fierce competition in Korea’s travel industry led to dissatisfied customers and a price war that put local travel operators in financial trouble. 2. Market creation is not entirely driven by entrepreneurship, based on a random, high-risk endeavor, and conducted through trial and error. With market-creating tools and guidance, anybody can make a market-creating move with confidence and creative competence. 3. While the human element is often sidelined in strategy formulation, a Blue Ocean shift emphasizes the importance of building confidence for creating new growth. Without the confidence to act, few will venture down a new path. 4. My Real Trip identified the market problems and solved them in a different way by looking across industry boundaries – and across time. By offering a different degree and kind of value, My Real Trip achieved a Blue Ocean shift, shaping unfavorable industry conditions in its favor. 5. My Real Trip did not replace the existing industry; it seized new growth and created a new market and jobs that did not exist before. This is nondisruptive creation.

Keywords:
Blue Ocean Strategy, Blue Ocean Shift, Sharing Economy, Travel Industry, Korea, Entrepreneurship, Start-Up, Strategy Formulation, Workshop, Market Creation, Exercise, Innovation

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published: 26 Jun 2018

  • Topic: Strategy
  • Industry: Radio and Television equipment, Computers
  • Region: North America

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Abstract:
This case accompanies 1) a collection of business press articles; 2) two video clips; 3) a teaching note; 4) lecture slides. While the case and articles will be assigned as pre-reading, the video clips and lecture slides will be shown in the classroom by the instructor.

Pedagogical Objectives:
This case shows how a series of blue ocean strategic moves by Apple Inc. has transformed it from a computer manufacturer into a consumer electronics giant. The aim here is to illustrate how blue ocean strategy concepts, tools, and methodologies are applied in the context of managing business portfolios at the corporate level.

Keywords:
Blue Ocean Strategy, Value Innovation, Apple, Corporate Portfolio Management, Corporate Strategy, Growth, Transformation, Consumer Electronics, Corporate Governance, Value Creation, Strategy and Implementation

Related:

published: 25 Jun 2018

  • Topic: Strategy
  • Industry: Travel Industry
  • Region: Asia

Show details ...

Abstract:
This highly popular exercise allows participants to actually apply the concept, frameworks, and process of blue ocean shift to one of the most competitive industries – the travel industry. Using worksheets, participants will take a step-by-step approach to systematically shift their strategic logic from competing to creating and apply the processes and tools of blue ocean shift to the travel industry. The case includes a real-life example of a successful blue ocean shift in the travel industry and is accompanied by a firsthand video interview with Dong Gun Lee, CEO of My Real Trip, a Korean company that challenged the travel industry’s long existing assumptions to open new market space.

Pedagogical Objectives:
The case consists of three parts: 1) Part A is a short case that looks into the competitive landscape of the travel industry in Korea and ends with the challenging question to participants to create their own blue ocean strategy. 2) A Blue Ocean Shift Exercise is conducted in the classroom using accompanying worksheets. Participants follow the process of blue ocean shift using the Buyer Utility Map, Noncustomer Analysis, the Six-Path Framework, the E-R-R-C Grid, and the To-Be Strategy Canvas to create their own blue ocean strategy. 3) Part B provides an example of creating a new market space in the travel industry in 2012 in Korea - My Real Trip. This theory-based video case narrates how My Real Trip reconstructed the market boundaries and created new demand in the crowded and divided travel industry. The strategic move can be discussed in the classroom using the lecture slides that accompany this case.

Keywords:
Blue Ocean Strategy, Blue Ocean Shift, Sharing Economy, Travel Industry, Korea, Entrepreneurship, Start-Up, Strategy Formulation, Workshop, Market Creation, Exercise, Innovation

Related:

published: 23 Mar 2018

  • Topic: Strategy
  • Industry: Catalog and mail-order houses; Computer processing and data preparation, Processing services
  • Region: North America

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Abstract:
On 30 May 2017, Amazon shares traded at a record high – above $1,000 – surpassing the share price of Google parent Alphabet. Started as an online bookstore 22 years earlier, Amazon has achieved uninterrupted growth by becoming the largest internet bookstore, the largest online marketplace, a media company, and the most successful IT service provider. It recently expanded into the bricks-and-mortar retail business, launching Amazon Books across the US and beta-testing Amazon Go in Seattle. As of May 2017, it was ranked the world’s most innovative company and the fourth largest company by market capitalization. The case explores Amazon’s path to growth and its successes and failures along the way. Successful strategic moves include Amazon Marketplace, Prime, Amazon Web Services, and Kindle. Failures included Auctions, A9 Search Engine, Endless, and the Fire Phone. Identifying commonalities and differences among them, the case shows the causes and consequences of Amazon’s at-once stellar performance and severe setbacks. It applies Blue Ocean Strategy concepts to analyze its market-creating logic for future growth.

Pedagogical Objectives:
The case aims to understand the root of a company’s high performance and growth. A company, in this case study Amazon, makes a series of strategic moves in pursuit of growth. Some of them largely contributed to Amazon’s growth and market dominance; some of them made Amazon to experience a serious setback. The case analyzes these strategic moves and finds out key commonalities and differences between the two, aiming to make the following learning points: 1) There is no perpetually excellent company – it can be brilliant at one moment and wrongheaded at another. 2) Amazon created a series of new markets by multi-faceted business offerings from online retailing to media and IT services. Those strategic moves opened and captured new market space instead of exploiting existing markets. By focusing on delivering meaningful value to buyers, Amazon made a significant leap in demand and achieved high growth. Furthermore, it eventually lowered the cost structure as a mass of buyers flocked and were locked-in by Amazon’s unprecedented utility. 3) Amazon jumped into many attractive industries and leveraged its entrenched resources and capabilities to bring intense competition against incumbents. These strategic moves, anchored in red ocean traps, focused on offering higher value or lower cost than the rivals, but they were not necessarily bought in by customers. 4) Key difference between Amazon’s success and failure can be found in the presence of value innovation. Amazon achieved high growth regardless of industry condition when they pioneered a new strategy that opened up a new value-cost frontier through a step change in the kind and degree of value offered, hence creating a new market and making competition irrelevant. By contrast, Amazon failed when it focused on delivering novelty technology without buyer value or simply exercised cost leadership in order to beat high-performing incumbents.

Keywords:
Blue Ocean Strategy, Blue Ocean Shift, Innovation, Growth, Strategy, Corporate Strategy, Failure, Technology Innovation, Market Creation, Competition, Amazon, Online Retailing, Amazon Web Services, Jeff Bezos, Prime

Related:

published: 23 Feb 2018

  • Topic: Strategy
  • Industry: Radio and Television equipment, computers
  • Region: North America

Show details ...

Abstract:
This case accompanies 1) a collection of business press articles; 2) two video clips; 3) a teaching note; 4) lecture slides. While the case and articles will be assigned as pre-reading, the video clips and lecture slides will be shown in the classroom by the instructor.

Pedagogical Objectives:
This case shows how a series of blue ocean strategic moves by Apple Inc. has transformed it from a computer manufacturer into a consumer electronics giant. The aim here is to illustrate how blue ocean strategy concepts, tools, and methodologies are applied in the context of managing business portfolios at the corporate level.

Keywords:
Blue Ocean Strategy, Value Innovation, Apple, Corporate Portfolio Management, Corporate Strategy, Growth, Transformation, Consumer Electronics, Corporate Governance, Value Creation, Strategy and Implementation

Related:

published: 11 Dec 2017

  • Topic: Strategy
  • Industry: Catalog and mail-order houses; Computer processing and data preparation, Processing services
  • Region: North America

Show details ...

Abstract:
On 30 May 2017, Amazon shares traded at a record high – above $1,000 – surpassing the share price of Google parent Alphabet. Started as an online bookstore 22 years earlier, Amazon has achieved uninterrupted growth by becoming the largest internet bookstore, the largest online marketplace, a media company, and the most successful IT service provider. It recently expanded into the bricks-and-mortar retail business, launching Amazon Books across the US and beta-testing Amazon Go in Seattle. As of May 2017, it was ranked the world’s most innovative company and the fourth largest company by market capitalization. The case explores Amazon’s path to growth and its successes and failures along the way. Successful strategic moves include Amazon Marketplace, Prime, Amazon Web Services, and Kindle. Failures included Auctions, A9 Search Engine, Endless, and the Fire Phone. Identifying commonalities and differences among them, the case shows the causes and consequences of Amazon’s at-once stellar performance and severe setbacks. It applies Blue Ocean Strategy concepts to analyze its market-creating logic for future growth.

Pedagogical Objectives:
The case aims to understand the root of a company’s high performance and growth. A company, in this case study Amazon, makes a series of strategic moves in pursuit of growth. Some of them largely contributed to Amazon’s growth and market dominance; some of them made Amazon to experience a serious setback. The case analyzes these strategic moves and finds out key commonalities and differences between the two, aiming to make the following learning points: 1) There is no perpetually excellent company – it can be brilliant at one moment and wrongheaded at another. 2) Amazon created a series of new markets by multi-faceted business offerings from online retailing to media and IT services. Those strategic moves opened and captured new market space instead of exploiting existing markets. By focusing on delivering meaningful value to buyers, Amazon made a significant leap in demand and achieved high growth. Furthermore, it eventually lowered the cost structure as a mass of buyers flocked and were locked-in by Amazon’s unprecedented utility. 3) Amazon jumped into many attractive industries and leveraged its entrenched resources and capabilities to bring intense competition against incumbents. These strategic moves, anchored in red ocean traps, focused on offering higher value or lower cost than the rivals, but they were not necessarily bought in by customers. 4) Key difference between Amazon’s success and failure can be found in the presence of value innovation. Amazon achieved high growth regardless of industry condition when they pioneered a new strategy that opened up a new value-cost frontier through a step change in the kind and degree of value offered, hence creating a new market and making competition irrelevant. By contrast, Amazon failed when it focused on delivering novelty technology without buyer value or simply exercised cost leadership in order to beat high-performing incumbents.

Keywords:
Blue Ocean Strategy, Blue Ocean Shift, Innovation, Growth, Strategy, Corporate Strategy, Failure, Technology Innovation, Market Creation, Competition, Amazon, Online Retailing, Amazon Web Services, Jeff Bezos, Prime.

Related:

published: 25 Sep 2017

  • Topic: Strategy
  • Industry: Catalog and mail-order houses; Computer processing and data preparation and processing services
  • Region: North America

Show details ...

Abstract:


On 30 May 2017, Amazon shares traded at a record high – above $1,000 – surpassing the share price of Google parent Alphabet. Started as an online bookstore 22 years earlier, Amazon has achieved uninterrupted growth by becoming the largest internet bookstore, the largest online marketplace, a media company, and the most successful IT service provider. It recently expanded into the bricks-and-mortar retail business, launching Amazon Books across the US and beta-testing Amazon Go in Seattle. As of May 2017, it was ranked the world’s most innovative company and the fourth largest company by market capitalization. The case explores Amazon’s path to growth and its successes and failures along the way. Successful strategic moves include Amazon Marketplace, Prime, Amazon Web Services, and Kindle. Failures included Auctions, A9 Search Engine, Endless, and the Fire Phone. Identifying commonalities and differences among them, the case shows the causes and consequences of Amazon’s at-once stellar performance and severe setbacks. It applies Blue Ocean Strategy concepts to analyze its market-creating logic for future growth.

Pedagogical Objectives:
The case aims to understand the root of a company’s high performance and growth. A company, in this case study Amazon, makes a series of strategic moves in pursuit of growth. Some of them largely contributed to Amazon’s growth and market dominance; some of them made Amazon to experience a serious setback. The case analyzes these strategic moves and finds out key commonalities and differences between the two, aiming to make the following learning points: 1) There is no perpetually excellent company – it can be brilliant at one moment and wrongheaded at another. 2) Amazon created a series of new markets by multi-faceted business offerings from online retailing to media and IT services. Those strategic moves opened and captured new market space instead of exploiting existing markets. By focusing on delivering meaningful value to buyers, Amazon made a significant leap in demand and achieved high growth. Furthermore, it eventually lowered the cost structure as a mass of buyers flocked and were locked-in by Amazon’s unprecedented utility. 3) Amazon jumped into many attractive industries and leveraged its entrenched resources and capabilities to bring intense competition against incumbents. These strategic moves, anchored in red ocean traps, focused on offering higher value or lower cost than the rivals, but they were not necessarily bought in by customers. 4) Key difference between Amazon’s success and failure can be found in the presence of value innovation. Amazon achieved high growth regardless of industry condition when they pioneered a new strategy that opened up a new value-cost frontier through a step change in the kind and degree of value offered, hence creating a new market and making competition irrelevant. By contrast, Amazon failed when it focused on delivering novelty technology without buyer value or simply exercised cost leadership in order to beat high-performing incumbents.

Keywords:
Blue Ocean Strategy, Blue Ocean Shift, Innovation, Growth Strategy, Corporate Strategy, Failure, Echnology Innovation, Market Creation, Competition, Amazon, Online Retailing, Amazon Web Services, Jeff Bezos, Prime

Related:

published: 26 Aug 2016

  • Topic: Strategy
  • Industry: Beauty Salon Industry
  • Region: North America

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Abstract:
Drybar was launched in 2010 with the tagline “No cuts. No color. Just Blowouts!” by hair stylist Alli Webb and her brother Michael Landau. Blow-drying had long been provided in most hair salons, but was considered an add-on or infrequent stand-alone service that did not incur a significant and consistent revenue stream. Alli recognized an untapped business opportunity in blowout services and turned it into a US$70 million business with 55 locations across the United States in just five years. The case looks at how Drybar changed the concept of professional blow-drying and made it compelling to women regardless of age or background. The case is presented in two parts. Part A describes the industry landscape of the American beauty salon industry in 2008, before Drybar entered the scene. It reviews the nature of the industry throughout history, and the structure and competitive forces that shaped conventional practices. Part B illustrates how Drybar was conceived with a different strategic approach and what made Drybar stand out from conventional hair salons while achieving lower costs. Part B is presented in an innovative cartoon storybook format to help enhance participants’ understanding of Drybar’s offering through an entertaining experience that is both informative and emotionally engaging.

Pedagogical Objectives:
1. Hair (Beauty) salon industry has long been existed and it is growing further as people’s aspiration for looking good and being pampered has grown more. The hair salon industry is a classic example of fragmented industry where thousands of small players offer similar products and services. They all essentially competed on the same factors. Locked in the conventional strategic logic, they had to make a tradeoff between differentiation and low costs. 2. Drybar, on the other hand, defied conventional strategy logic and created a new market space for specialized blowout service. It captured a blue ocean opportunity in blowout service, which had been largely ignored by existing hair salons. By identifying key pain points of existing, refusing, and unexplored customers of salon blowouts, Drybar created a new concept of blowout service through which all women enjoy their me-time and feel good. It made professional blowouts an affordable habit. Here, Drybar broke the tradeoff between differentiation and low costs by eliminating and reducing over-served or irrelevant offerings while creating unprecedented value to buyers.

Keywords:
Blue Ocean Strategy, Beauty Industry, Hair Salon, Fragmented Industry, Value Innovation, Entrepreneurship, Start-Up, New Market, Franchise, Venture, Blue Ocean Strategy

Related:

published: 26 Aug 2016

  • Topic: Strategy
  • Industry: Beauty Salon Industry
  • Region: North America

Show details ...

Abstract:
Drybar was launched in 2010 with the tagline “No cuts. No color. Just Blowouts!” by hair stylist Alli Webb and her brother Michael Landau. Blow-drying had long been provided in most hair salons, but was considered an add-on or infrequent stand-alone service that did not incur a significant and consistent revenue stream. Alli recognized an untapped business opportunity in blowout services and turned it into a US$70 million business with 55 locations across the United States in just five years. The case looks at how Drybar changed the concept of professional blow-drying and made it compelling to women regardless of age or background. The case is presented in two parts. Part A describes the industry landscape of the American beauty salon industry in 2008, before Drybar entered the scene. It reviews the nature of the industry throughout history, and the structure and competitive forces that shaped conventional practices. Part B illustrates how Drybar was conceived with a different strategic approach and what made Drybar stand out from conventional hair salons while achieving lower costs. Part B is presented in an innovative cartoon storybook format to help enhance participants’ understanding of Drybar’s offering through an entertaining experience that is both informative and emotionally engaging.

Pedagogical Objectives:
1. Hair (Beauty) salon industry has long been existed and it is growing further as people’s aspiration for looking good and being pampered has grown more. The hair salon industry is a classic example of fragmented industry where thousands of small players offer similar products and services. They all essentially competed on the same factors. Locked in the conventional strategic logic, they had to make a tradeoff between differentiation and low costs. 2. Drybar, on the other hand, defied conventional strategy logic and created a new market space for specialized blowout service. It captured a blue ocean opportunity in blowout service, which had been largely ignored by existing hair salons. By identifying key pain points of existing, refusing, and unexplored customers of salon blowouts, Drybar created a new concept of blowout service through which all women enjoy their me-time and feel good. It made professional blowouts an affordable habit. Here, Drybar broke the tradeoff between differentiation and low costs by eliminating and reducing over-served or irrelevant offerings while creating unprecedented value to buyers.

Keywords:
Blue Ocean Strategy, Beauty Industry, Hair Salon, Fragmented Industry, Value Innovation, Entrepreneurship, Start-Up, New Market, Franchise, Venture, Blue Ocean Strategy

Related:

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