Yellow tail wine, winenco, blue ocean strategy, stategyatheinz, process of excellence network academic article. Some producers and importers, unable to sell stocks, went into default. Sep 16, 2010 by reinventing wine, casella wines created a whole new target market in addition to widening the existing market for wines. A couple of examples from the book brand together by nicholas ind, clare. Instead of offering wine as wine, casella created a social drink accessible to everyone. Cirque du soleils blue ocean strategy 1252 words cram. The strategy canvas plots the strategy of each player in a market.
Yellow tail, another perfect example of the strategy of blue oceans is developing a new wine brand from casella wines. A critical evaluation of blue ocean strategy and its value to. Blue ocean strategy how to create uncontested market space and. Benchmarking trying to offer a little more for a little less does not open up blue ocean markets b. Pdf the influence of blue ocean strategy on organizational. The opportunities in the competition can also be grabbed with a different strategic framework that is matchless with any competitor in the industry. The blue ocean strategy is a business book that has. From theory to practice, kim and mauborgne, 2005 book. Oct 21, 2007 casella wines created new customer experiences for wine drinking. However, yellow tail changed this image for non wine drinkers. Strategy canvas is highlighted in the book blue ocean strategy, written by w. To create the framework of blue ocean strategy, the authors analyzed more than 150 strategic moves made by companies between 1880 and 2000.
Aug 14, 2017 americanborn economist and a business theorist renee mauborgne currently works as a professor for strategy and management theories mis. Because of widespread access to information and resources today, it becomes too easy for businesses to enter an already established market. Casella wines of australia shifted the strategy canvas of the u. One such framework, the strategy canvas, captures the current states of. To achieve this, it turned to the second basic analytic underlying blue. A critical evaluation of blue ocean strategy and its value. Red ocean strategy blue ocean strategy we share ideas a change in focus a. However, the authors fail to discuss at any significant length. In 2001, the yellow tail brand of wines, launched in partnership with australias casella wines, achieved considerable success in the us market, despite intense competition from californian, italian, and chilean wines.
Once these actions have been taken, look to see if your strategy has the three characteristics of a good blue ocean strategy. How to make a fun and nontraditional wine thats easy to drink for everyone. Casella wines created yellow tail, a wine whose strategic profile deviated from the norms of the competition and created a product using blue ocean strategy. The blue ocean strategy is best illustrated by the performance of cirque du soleil. The four principles of strategy formulation and the two principles of implementation set out in this book to generate a new strategy canvas i. In early 2001, the australian winery casella wines addressed this. Blue ocean strategy institute bos 019, available at. If we had to zoom in on five key points of distinction that make the book. Casella wines was the first company to put both red and white wine in the sameshaped bottle, a practice that created. Casella wines created yellow tail, a wine whose strategic profile broke from. Blue ocean strategy teaches that entrepreneurs should concentrate on noncustomers and understand how to convert them into customers. Kim and mauborgne use casella wines yellow tail line of wines as an example of a successful blue ocean strategy. Casella wines,an australian winery made a easy to enjoy wine for everyday by looking at demand side of the industry alternatives of beer, spirits, and readytodrink cocktails.
Chan kim and renee mauborgne describe the space where most companies compete as the red ocean a space bloodied by fierce competition. Casella wines used the blue ocean strategy to explore and create new uncontested market space. Made by group d of the minor global trendwatching 2015. How to create uncontested market space and make the competition irrelevant w. The first example of blue ocean strategy comes from computer games giant. Blue ocean strategy, joint ventures, pricing strategy, test. After an initial failure in the late 1990s to create an import brand with casella wines in australia, deutsch found success with the yellow tail brand the number one australian wine export and u. Red ocean strategy focus on existing customers blue ocean strategy focus on noncustomers compete in existing market space. Read online, read in our mobile apps for iphoneandroid and send in pdf epubmobi to amazon kindle.
Strategy canvas to build a compelling blue ocean strategy, the strategy canvas needs to be both a diagnostic and an action framework this serves two purposes capturing the state of play in the current marketspace coming up with the basic analytic underlying blue the strategy canvas of u. Its also a case study that shows the success of the blue ocean. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. List the factors the customer cares about, and current dimensions of competition. By using the strategy canvas, the company identified 7 key industry factors in the us wine industry. Mar 20, 2020 yellow tail wines and blue ocean strategy. Blue ocean strategy how to create uncontested market space.
Chan kim and renee maubogne, and illustrated with examples of game changing strategies by companies liked curves and yellow tail wine. Nov 08, 2018 casella wines with the help of the four actions framework created a new, uncontested, highlysuccessful blue ocean amid the highly competitive bloody red ocean industry. They did so by looking at the demand side of the alternatives of beer, spirits and readytodrink cocktails, which captured 3 times as many us consumer alcohol. The horizontal axis captures the range of factors the industry competes on and invests in.
Bm to discuss how blue ocean strategy is becoming the wa v e of the fu. They are the authors of blue ocean strategy, which has sold over 3. They discovered that by coming out with a new offering, which was nontraditional and fun, they appealed to the 3 times as many u. Untapped market space, vast and deep like blue oceans competition and rules do not exist demand creation leading to opportunities for high. Pollard in their international bestseller, blue ocean strategy, w. This wine industry case study, accompanied by a twopart video, examines the. Casella wines created yellow tail, a wine whose strategic profile broke from the competition and created a blue ocean. Yellow wine tail entrepreneurship, free online essays readessay. Thus, enabling the company to follow differentiated strategic profile called a value curve. At first blush, the answer to casella s dilemma is simple. Bookreport,blueoceanstrategy blue ocean strategy how to. Pdf blue ocean strategys fatal flaw manuel angelucci.
The corporate quest for profitable innovation drives the need to develop a blue ocean strategy. In july 2001, australias casella winery introduced yellow tail into this highly. A classic example of a blue ocean strategy in action is the development of the yellow tail wine brand by australian winemaker casella wines. Part b of the dvd movie then documents how one firm, casella wines, created a blue ocean of new market space within this highly competitive us wine industry with its introduction of yellow tail.
Blue ocean pedagogical materials, used in over 2,800 universities and in almost every country in the world, go beyond the standard casebased method. Blue ocean strategy,branding,corporate strategy,competition,marketing strategy,international marketing. Casella wines shifted the strategy canvas of the wine industry in such a way that. With this insight, casella wines was ready to explore how to redraw the strategic profile of the u. The wine called yellow tail quickly became the number one imported wine into the usa, surpassing the wines of france and italy. In july 2001, australias casella winery introduced yellow tail into this highly competitive us market. Strategy canvas from blue ocean strategy shortform books. In their book entitled blue ocean strategy, the authors provide examples. In the space of only two years, yellow tail emerged as the fastestgrowing brand in the histories of both the australian and the u.
Soft, sweet, and fruity, yellow tail appealed to beer drinkers and readytodrink cocktail drinkers, without the traditional focus on tannins, oak. Casella wines found that the mass of american adults saw wine as. Blue ocean strategy how to create uncontested market. Value curve yellow tail wine australian casella wines created a blue ocean strategy that, in just two years, caused its yellow tail wine to become the fastest growing brand in the histories of both the australian and the u. The four actions framework and the eliminatereduceraisecreate grid are almost a straightforward stepbystep strategy which offers an answer to all four parts of the marketing mix. The deutschcasella joint venture and yellow tail wines. May 10, 2019 casella wines redefined the problem of the wine industry to a new one by finding a solution to a question. They redefined, through their blue ocean strategy, a wine that was fun to drink and easy to buy.
A couple of examples from the book brand together by nicholas. Innovations occur today at a blistering pace due to globalization, overcapacity and technology. Therefore, people started buying this wine and casella wines was succeeded to open the show more content blue ocean strategy is not only to reduce cost but giving new excitement and demand for customers. Jan 31, 20 this is seen as a mandatory if it is to return to profitability, but equally a deathdefying act for its blue ocean strategy. Created in 1984 by a group of street performers, cirque productions have been seen by almost 40 million people in 90 cities around the world.
Australian casella wines created a blue ocean strategy that, in just two years, caused its yellow tail wine to become the fastest growing brand in the histories of both the australian and the u. Wine industry in the late 1990s high premium wines budget wines low price use of enological abovetheline aging vineyard prestige wine wine terminology and marketing quality and legacy complexity range distinctions in wine communication so what we see from the above strategy canvas are. Yet, to what extent can casella wines success be attributed to the companys making retail employees. Chan kim and renee mauborgne provide tools and frameworks for creating blue oceanstheir term for all the industries not in existence today. Pdf a decisionanalytic approach to blueocean strategy. In 1999, casella wines launched a value brand called carramar estate in. The muchtalkedabout book, blue ocean strategy, shows companies how to expand by creating new market spaces or industries that have little or no competition.
These cases include casella wines, southwest airlines, and cirque du soleil, a canadian circus. Instruction is minimal, being confined to the star of the exercise video or book and. The case is accompanied by a 2part video called creating a blue ocean in the us wine industry. The lessons, tools, and frameworks of blue ocean strategy will help you to meet this.
Successfully implemented, a blue ocean strategy provides strong barriers of imitation, giving a substantial. Fancy wines tried to offer more of everything tasting complexity, refined image, aging, vineyard history and prestige, and price. How to create uncontested market space and make competition irrelevant available for. Our multimedia cases and interactive exercises are designed to help you build a deeper understanding of key blue ocean strategy concepts, developed by worldrenowned professors chan kim and renee mauborgne. Casella wines followed blue ocean strategy by utilizing two tools i. Customer research is also ineffective because customers can scarcely imagine how to create uncontested market space no soccer mom ever asked for a minivan c. It acted on the blue ocean strategy to unlock uncontested market space that changed the face of the u.
Mar 18, 2020 the strategy canvas from blue ocean strategy visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. Wine company casella wines used this analytical process to make its. There is, however, such a thing as a successful business strategy. Casella, instead of selling his product as only a wine, sold it as a social drink and offered it to all age groups or to those consumers who liked beer, wine, cocktails and others. Yet, to what extent can casella wines success be attributed to the companys making retail employees ambassadors of yellow tail by giving them australian outback.
Chan kim and renee mauborgne the blue ocean strategy book debunks the popular notion that in order to win in business, we must beat the competition. It shows how by applying a reconstructionist view of strategy, the firm gained insight into how market and industry boundaries can be reconstructed. Blue ocean strategy 5 the strategy canvas of the u. Jun 06, 2018 introduced in the 2005 book blue ocean strategy, blue oceans are associated with rapid and high profits.
Jul 23, 20 value curve yellow tail wine australian casella wines created a blue ocean strategy that, in just two years, caused its yellow tail wine to become the fastest growing brand in the histories of both the australian and the u. Australian company casella wines analyzed the portrait of americans who do not drink wine. Summary of the first four chapters of the international bestseller blue ocean strategy. Yet, to what extent can casella wines success be attributed to the companys making retail employees ambassadors of yellow tail by giving them australian outback clothing. Abhilash dutta ft172001 alok pathak ft172009 ankur rao ft172016 bhanuu prashast ft172024 harshit sodhani ft172031 abhishek rana ft172002 section 2 group 1 strategy canvas to build a compelling blue ocean strategy, the strategy canvas needs to be both a diagnostic and an action framework this serves two. Marketing strategy every blue ocean will eventually turn. First, in a blue ocean strategy you essentially make the competition irrelevant by breaking out of the red ocean and creating new demand in uncontested market space. Blue ocean strategy how to create uncontested market space and make the competition irrelevant w. Nov 29, 2005 casella created a blue ocean by introducing a fun, nontraditional wine targeted at the u. The strategic factors that the industry competes on and invests in are displayed.
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