chap 7 mp assignment

8/10/2019 Chap 7 MP Assignment

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Managerial Policy Assignment

Division of Chapter 7 into Blue Ocean Strategy & Reinventing the

Business Model

Submitted by: Maliha Khan

Blue Ocean Strategy

1. Soap Industry: This report clearly uses the blue ocean strategy to come up with an

entirely new product which does not exist in Pakistan yet. Furthermore, they are offering

such a product at a low cost as well hence offering both differentiation and cost

leadership as well. The product would not face any direct competition from soaps and

would also make the competition from hair removal creams irrelevant, as it would

provide better convenience to the customers.

2. Shipping Industry: This report has created a blue ocean by combining the cruise

industry, which is non-existent in Pakistan and cargo shipping industry. Their model

would develop a ship liner which transports exports conducted through Pakistan to Dubai

along with willing tourists who want to go on a trip to Dubai; hence this model develops

a new uncontested market space for itself.

3. Apparel Industry: The Apparel industry report has tried to create a blue ocean by

providing ready to wear, customizable outfits to populations in smaller towns at

affordable prices. However this report has also reinvented their business model to go

along with their blue ocean strategy by coming up with the idea of acquisition of defected

material from known brands or last seasons designs at discounted prices.

4. Media Industry: This is clearly a blue ocean strategy being used in this report as an

entirely comedy television network is a new concept as presently 24 hour news, religion,

sports, music and overall entertainment channels exist, however a 24 hour comedy

channel does not.


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5. Baby Food Industry:Their model is a blue ocean in the sense that no existing company

is providing such a solution designed to address the issues of micronutrient deficiencies

among rural and semi urban Bottom of Pyramid babies. Hence, all the marketing tools

along with distribution strategy will help the model to capture a large market share.

However it is not sustainable as large multinationals will follow suit with this model

soon.

6. Mabrook:This is a blue ocean strategy being used in this report as of dispensing vans

and delivering milk at door steps is still not done here in Pakistan. However, since

companies do use subscription based deliveries this is not entirely a new concept then

either. Furthermore, their cost effectiveness was not explained in great detail which

makes it difficult to measure whether this is truly a blue ocean strategy or not.

7. Oil and Gas Industry:This report proposes extraction of oil and shale gas from reserves

found locally. Shale gas has not yet been explored in Pakistan and could represent a blue

ocean depending on the pricing structure and marketing undertaken by SHZ. CNG

represented a huge blue ocean when it entered into the market and shale gas could be the

next one. Pakistan has high reserves of shale gas but is not being explored currently, thus

this will provide the first mover advantage to this model.

8. Automobile Industry:This report aims to be the first to offer a locally manufactured

hybrid car which combined conventional sources of energy with environment friendly

ethanol batteries, which are also a renewable source of energy. Furthermore, it plans to

offer these cars at affordable prices to the average income customer. The go green,

environment friendly market has not been catered to yet by the automobile sector and

represent a blue ocean. This would require a lot of research and marketing efforts as well.

Reinventing the Business Model

1. Ice cream Industry: This report is clearly reinventing the business model in their

proposed company by saying that the production would take place in facilities placed at

nearby farms so you could begin as soon as you procure milk. From that warehouse, cold


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storage supply chain carries the final product to distributors or third party which delivers

them to Milk Shop in Mohallas. Considering their product targeted SEC B and C who

purchase milk from Gwalas or Khula Doodh, they will be able to create a touch point for

these consumers at the milk shops rather than at malls or stores. The product based purely

on milk content connected well with milk shops and tapped those places of marketing

which were not contested by major players.

2. Packaged Milk Industry:This report is proposing to provide packaged milk along with

milk related products, desserts etc. This company is aspiring to combine the services of a

milk shop and a bakery or an ice cream and juice shop. The concept is not new as many

local milk retailers offer lassi along with the fresh milk, and thus it would not be difficult

for competitors to offer milk along with milk related products at their shop. It will have to

attract the existing demand from these and other enterprises such as Royal Bakery and

Milk Shop. Hence it is neither a blue ocean strategy nor a reinvention of the business

model.

3. Advertising Industry: This is an example of reinventing the business model as the

proposed company is portions of two different existing markets, which in this case are for

advertising and PR. The company aims to offer these services under one roof and is

therefore reinventing the business model. There was nothing new and thus the model will

face competition from both advertising and PR companies.

4. Petroleum Industry: Providing fuel at the convenience of your doorstep is a new

business model indeed. The business model is different in the sense that it provides

loyalty card holders discounts, car wash, magazine and outings on special occasion. Such

promotion techniques will allow fuel consumers to switch towards this company and

avail loyalty card services. They have also differentiated their model by placement ofcaf and photo booths at fuel stations.

5. Courier Industry: This is another example of reinventing the business model as the

existing model used in the courier industry is being redefined by eliminating the express

centers and installation of outlets and central hubs. Furthermore, they are also targeting


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nmet demand of rural areas and far away areas and planning to build strategic alliances

with companies like Shaheen and Easy paisa. Going with this model will allow them to

pursue their strategy of providing fast services at lower cost through curtailment of fixed

costs, however it is difficult to implement.

6. Retail Industry:This report doesnt really have any new strategy except that they are

proposing a wholesale wholesale retailer which will also sell to smaller retailers and

hopes to enter into neglected rural and sub urban markets. This business model will face

direct competition from retailers such as METRO Cash & Carry and other wholesale

retailer players in the market. In the rural market, it will face competition from local

businesses and kiryana stores and seems to be highly unsuccessful.

7. Pharmaceutical Industry: This is a clear example of reinventing the business model as

well, as they are using the concept of mobile pharmacies to target the people living at the

bottom of the pyramid. They plan to use volunteers for awareness campaign, with patient

follow up team and partnership with local doctors to provide better services. Their

financial model is also very stable because it is totally run on funds, sponsorships and

donations. There is no competition in this field because it is purely working as an NGO

with no profit and only break-even.

8. Airline Industry:This report also applied the concept of reinventing the business model

as they propose to properly market their airline like a brand and begin promotional

campaigns like mall activation, promotion through mobile services, TV and newspaper

ads and digital marketing. They also plan to provide airline services to customers who

currently do not have access to these services through operating in under-served or

unserved routes. But since the routes were not clearly mentioned, the feasibility of this

model cannot be evaluated.

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