A Study On The Home Appliance's Value Innovation Strategies: Based On Blue Ocean Strategy

With the establishment of market economy, small and medium-sized enterprises are playing the more and more important role in the social economic life. They are promoting the national economic growth, side of alleviating the pressure on employment, spurring and investing, optimizing the economic structure, promoting the market to strive, advancing the technological innovation non-governmentally unexpectedly etc. and all playing a extremely important role. At present, the fierce market fought for the environment and one's own strategy unexpectedly to lose and bring the enormous challenge to development of the home appliance enterprises. Under this background, which kind of competitive strategy and growth strategy are taken to make enterprises keep developing in a healthy way for a long time in the changeable market environment, become the focal point that small and medium-sized enterprises study.W. C. Kim and Ren A. Mauborgne who worked at European Institute of Business Administration presented the Blue Ocean Strategy in their book"Blue Ocean Strategy"for the first time, which based on the study of more than 30 industries and 150 strategic actions, the time span more than 100 years. The Blue Ocean Strategy is a new strategy which different from the traditional model. The essence of Blue Ocean is creating demand, value innovation and beyond the competition. It also has profound impact on the enterprise's management in last two years. At the same time they hold that value innovation is the cornerstone of Blue Ocean Strategy. By using value innovation, Blue ocean strategy can pursue"differentiation"and"cost leadership"at the same time. Enterprises are able to get rid of"Red Ocean"and create"Blue Ocean"by integrating the elements of market competition, rebuilding the market and industry boundaries and opening a huge potential demand.This paper believes that can use the Blue Ocean to reduce the cost and raise the value. For that reason, this research reviewed the theory of value innovation, blue sea strategy and the home appliance enterprises in China. This research also analysis the characteristic, concept and trend of the home appliance enterprises in China. Then this research applies PEST theory to the home appliance enterprises'general environment and Porter's theory to analysis the competitive environment, simultaneously analysis the home appliance enterprises'strengths, weaknesses, opportunities, threats. By analyzing the above, this paper holds that Chinese home appliance enterprises have already fallen deeply into the Red Sea and need make use of to create the Blue Sea urgently. So, this paper point the approaches and methods about Chinese home appliance enterprises how to execute value innovation, at last it also point the tactics of executing value innovation which based on the Blue Ocean Strategy.