BPL 5100H Lecture Notes - Lecture 25: Peter Drucker, Blue Ocean Strategy
16 Nov 2018
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Document Summary
Innovation: effort to change enterprise"s economic or social potential, peter drucker the discipline of innovation . Through commercialization or adoption of new business, product or process. Earlier belief: innovation is a strategic choice that some firms make and others don"t. This class: innovation is a strategic necessity to be an effective cost-leader, differentiator, or integrated player. Product innovation tends to be more radical than process innovation (though not always) Radical/ discontinuous innovation may not necessarily involve more sophisticated technology (could just be an innovative business model involving some product and process innovation) Red ocean strategy: compete in existing market space, beat the competition, exploit existing demand, make the value/cost trade-off, align activities with choice of objective. Blue ocean strategy: create uncontested market space, make the competition irrelevant, create and capture new demand, break the value/cost trade-off, align activities with dual objective.
