5 Digital Marketing Tips | Devherds Software Solutions
Blue ocean strategy
1. Path 1:
Look Across Alternative Industries to create
uncontested market space
2. What is Path 1?
A company has to realize that its customers are not
only taking their product or service into consideration
but also offers from other industries as alternatives to
fulfills their needs.
A company competes not only with the other firms in
its own industry but also with companies in those
other industries that produce alternative products or
services
3. What Are Substitutes?
A company competes with other firms in its own industry
These goods or services have different forms
But: they may have the same function or core utility
Shift in price, change in model, ad campaign – all this can
elicit a tremendous response from rivals within an industry
Alternative industries usually don’t recognize these
changes
4. What Are Alternatives?
A company competes with firms in other industries
who produce alternative products or services
These goods or services have different forms and function and
core utility
But: they have the same purpose
Example:
Restaurant vs. Cinema
function: enjoy the night out
5. NetJets – how it works
Fractional jet ownership
1/16 ownership to be shared with 15 others
Each one has 50 hours of flight time per year
Starting at $375,000 (plus pilot, maintenance, and
other monthly costs)
6. NetJets - Facts
Purchased by Berkshire Hathaway in 1998
In less than 20 years now larger than many airlines
> 500 aircraft
250,000 flights to more than 140 countries
Revenue growth at 30-35 % p.a.
7. Looking across alternative industries
Target group: Business travellers
Two choices:
1.) Business class/first class on a commercial airline
2.) Company’s own private jet
8. 1.) Why do corporations choose to use
commercial airlines for their corporate travel?
avoids high investment
costs of a multimillion $
aircraft
company purchases only
the number of corporate
airline tickets needed per
year
lowering variable costs
reducing possibility of
unused travel time
long check-in and security
lines
hectic flight transfers
overnight stays
congested airports
9. NetJet‘s solution
NetJets avoids the enormous fixed costs
in contrary to commercial flights no need to cover
high fixed costs by filling huge aircrafts
Jet is available with only 4 hours’ notice
if nothing is available NetJet will charter one
NetJet reduces security issues
10. 2.) Why do people choose corporate jets
over commercial travel?
dramatically cuts total time multimillion-dollar price
Reduces hassle
allows point-to-point travel
benefit of having more
productive and energized
executives
dedicated flight
department is needed to
take care of scheduling
deadhead costs
(costs of flying the aircraft
from its home base to
where needed)
11. NetJet‘s solution
NetJet’s smaller airplanes, the use of smaller regional
airports and limited staff keep costs at a minimum
5,500 airports across the USA in convenient locations
near business centres
On international flights the plane pulls directly to the
customs office
In-flight-convenience: favourite beverages, food, ...
ready
13. Nintendo Wii – What it is
Home video game console
Wireles controller
Handheld pointing device
Can detect movements in 3 dimensions
Connections to the internet for updates
14. Nintendo Wii - Facts
2001: Was conceived after „flop“ of Nintendo Game
Cube
2005: Prototype of the controller was revealed at Tokyo
Games Show
2008: Wii leads the generation over the playstation 3
and xBox 360 in worldwide sales
Market leader
15. Looking across alternative industries
Target group: Broader demographic than Sony and
Microsoft
Two choices:
1.) Going out for bowling
Families, older people
2.) Staying at home and play a console game
Kids and teenagers
16. Nintendo Wii – Key factors
Movie playing
Price (~
Grafics
Physics
Fun
Game Library
Magic wand
17. Nintendo Wii - Solution
Nearly every demographic group as target market
18. Satoru Iwata (Nintendo president)
„We‘re not thinking about fighting Sony, but about
how many people we can get to play games.
The thing we are thinking about most, is not portable
systems, consoles and so forth, but that we want to get
new people playing games“