Font Size: a A A

Theory And Case Study Of Corporation Value Innovation

Posted on:2008-04-29Degree:MasterType:Thesis
Country:ChinaCandidate:J C XieFull Text:PDF
GTID:2189360212979850Subject:Management Science and Engineering
Abstract/Summary:PDF Full Text Request
In the past two decades, accelerated technological advances and the trend toward globalization result in supply exceeding demand in increasing numbers of industries. The profit margin of corporations within these industries have been squeezed to the utmost, and the price competitions have become more cruel. These corporations are finally stuck in the bloody "red ocean". However, some corporations re-conceptualize industry, avoid fierce competition and enter into profitable and noncompetitive "blue ocean" in the first place. The process from "red ocean" to "blue ocean" is the process of corporation value innovation.Value innovation is achieved only when the whole system of the company's utility, price, and cost activities is properly aligned. Value innovation integrates the range of a firm's functional and operational activities. In this sense, value innovation is more than innovation. It is about strategy that embraces the entire system of a company's activities. Therefore, value innovation can be described as "strategic innovation" or "strategy innovation".First, the three elements of successful traditional corporation strategy: "positioning", "trade-off" and "fit" are analyzed, based on which the "exogenous" and "endogenous" categories are brought forward. According to this categorization, the framework with regard to how the traditional strategy evolves into "blue ocean strategy" is established, which constitutes the theoretical base of value innovation analysis.Secondly, based on the theoretical framework above, the process of corporation value innovation is analyzed in three steps. The fist step is "find new market space". In this session , how to open new market space within current market border and by reconstructing new border is analyzed and compared, and relevant tools are given. The second step is "product or service innovation". In this session, how to create new product or service according to the new demand is analyzed, and "the four actions framework" is put forward to assist in this process. The third step is "adjust interior operational resources". In this session, how to adjust corporation culture, human resources and organization structure according to the previous two steps is analyzed, and "value-cost" matrix is created to analyze the reconstructing of corporation cost structure during the process of value innovation.
Keywords/Search Tags:value innovation, blue ocean, strategy
PDF Full Text Request
Related items