Task Based on Blue Ocean Strategy answer the following 2 Thi

Task: Based on Blue Ocean Strategy, answer the following:

2. Think of a new type of product (good or service) to launch and answer the following questions:

1. Does market takeoff depend on the development of complementary goods or services that currently are not available?

2. Is new infrastructure required before buyer demand can surge?

3. Will buyers need to learn new skills or adopt new behaviors?

4. Will buyers encounter high switching costs in moving to the newly introduced product?

5. Are there influential competitors in a position to delay the efforts of a first-mover?

(Thompson, Peteraf, Gamble, Strickland III, 2014)

3. Based on your responses to the above 5 questions, do you believe your product would make a better first- mover or should you wait until the market is further developed?

Solution

A service which can be launched as part of Blue Ocean strategy is the service station for electric cars.

1. Does market takeoff depend on the development of complementary goods or services that currently are not available?

It is definitely true that market will only takeoff once the number of electric vehicles, which are the complementary goods in this case, increase and more number of customers’ starts driving electric cars.

2. Is new infrastructure required before buyer demand can surge?

New infrastructure in terms of charging stations for electric cars are needed before buyer starts getting the confidence that they can go on long road trips using electric cars and demand for them will go up as a result.

3. Will buyers need to learn new skills or adopt new behaviors?

Buyers don’t need any major change in driving skills or acquiring any new skill to start using electric cars and sending them over for regular service.

4. Will buyers encounter high switching costs in moving to the newly introduced product?

The switching cost may be slightly high initially due to the higher cost of electric cars.

5. Are there influential competitors in a position to delay the efforts of a first-mover?

The automobile manufacturers may start offering better deals and may reduce price to prevent new buyers to switch to electric cars.

Based on the above answers, it may be prudent to wait for some more time and analyze the market and the adoption rate of electric cars by customers before jumping in and start a nationwide service center which exclusively cater to the electric cars and their consumers.