MAKING A BLUE OCEAN STRATEGIC MOVE THAT

DISCOURAGES IMITATION






GROUP-5
SACHIN KUMAR (0303/50)
RAJIV RANJAN (0281/50)
RATANSHARAN RAO (0286/50)
PRASHANT SINGH(0256/50)
PRASENJIT DUTTA (0252/50)
SAHELI SAHA (0305/50)

Industry Analysis
Threat Of New
Entrants
Entry barrier is high high
investment for collecting
information through
paid/unpaid sources ; gestation
period high
Bargaining Power of
Customers

Switching cost is low
Low brand loyalty

Bargaining Power of
Suppliers

High proprietary over exclusive
information; low switching cost

Threat of Substitutes

Printed encyclopedia, websites
other than online encyclopedia,
information companies like DNB


Rivalry Among
Existing Competitors

Low as few players present in
the market
Few players for a single language


Right Strategic Approach ?




STRUCTURALIST APPROACH

RECONSTRUCTIONIST APPROACH

Structural conditions of an industry
are attractive
Posses resources and capabilities to
carve out viable competitive
position
Focus of strategy is to leverage the
core strengths in existing market
The alignment of the three strategy
propositions in pursuit of EITHER
differentiation or low cost.

When conditions are unfavorable
Does not have sufficient resources
and capabilities
Focus of strategies to create a new
market space for itself
The alignment of the three strategy
propositions in pursuit of BOTH
differentiation and low cost.
Online Information Search Experience
Wikipedia links appeared far ahead of Britannica, when online search was performed on
search engine

Information easily accessible on Wikipedia as compared to Britannica

No distracting advertisements on Wikipedia

Both of them produced relevant information

Wikipedia is accessible in multiple languages




Strategy
Proposition
Value
Profit
Quality of
Execution
People
Proposition
How To Achieve A Strategic Approach
Value Proposition Analysis
Cost
Adva
ntage
Differen
tiation
Eliminate Subscription fees
Distracting advertisements
Copyright restrictions on reuse of information
Reduce Importance of data accuracy and reliability among users
Raise Real-time knowledge iPad article
Ease of finding most relevant information
Diversity of topics
Create Created a platform for interested people to share
information
Accessibility in 270 different languages-
only online encyclopedia in some languages
Value Proposition for online
Encyclopedia Industry
Wikipedia
Britannica
High
Low
Offerings
Motivational Factors




Wikipedia Britannica

Free & easily accessible source of
information
Produces most relevant answers to
online keyword searches.
Opportunity to contribute to diverse
topics
Free fun, neutral forum for personal
expression
Provision to contribute anonymously
No hard & fast rules for writing/editing
to maintain a neutral point of view
Opportunity to associate with virtual
community of contributors
Non monitory awards to promote
contributors status-BARNSTAR
Taking pride and ownership in their
contribution




Accurate and reliable source of
information
Access to exclusive information,
not available in public forum
Loyalty
Motivation to use arising out of
having subscribed to Britannica

Value proposition (What Wikipedia did different)




Britannica Wikipedia
Inbound logistics Scholars are paid for
writing the articles
Articles contributed by
volunteers.
Operations Staff of 20 people to
support 8.4 million unique
monthly visitors
Staff of 30 people to support
346 million unique monthly
visitors
Outbound
Logistics
Takes time for updating the
articles. Thorough
verification process.

Constant update of the online
resource.
31 million articles in 270
languages
Sales &
Marketing
Not very aggressive
marketing, leading to the
brand name getting weaker
Search engine normally returns
wiki links in top searches
owing to the wiki articles
content
Service and
Support
Once purchased the user
page is made advertisement
free.
Provides forum to resolve
disputes and mechanism for
quick response to intentional
vandalism



Value Chain Model
Firm Infrastructure (General Management) The firm consists of writers,
editors and board of trustees who are volunteers and mostly the activities are run by
volunteer community
Human Resource Management Manages 30 paid employees, rest functions handled by
volunteers who contribute for various purposes
Technology Development Effective Search engine optimization and usage of joint licenses of CC-
BY-SA and GFDL for licensing, technical capacity
Procurement Internet Hosting, articles maintained and generated by volunteers
Inbound
logistics
-Volunteers
who also act
as writers,
editors and
board of
trustees
Articles
and
donations
contributed
by the
volunteers.
Operations
- 30
employees to
support
functioning of
online
encyclopedia
Outbound
Logistics
- Constant
update of
the online
resource

- Around
31 million
total
articles in
around 270
languages
Sales &
Marketing
- No active
marketing
as such but
search
engine
optimization
to return as
one of the
top results
for every
search
Service and
Support
-Rectification
of inaccurate
information in
quick time
- Response to
intentional
vandalism
-Dispute
solving

THE PROFIT PROPOSITION
Wikipedia Britannica
Revenues &
other
Incomes
Individual Contribution
Donations from Corporate
entities/Private foundations
Subscription
Advertisement

Cost Administrative Overhead for
employees in support activities
Operational Cost

Administrative staff
including paid
advisors, editors &
contributors
Marketing &
advertisement costs
Web Optimization
Cost
Operational Cost


Profit Proposition Analysis
Cost
Adva
ntage
Differen
tiation
Eliminate Subscription fees
Expenses in brand building ,marketing, advertising and
web optimization
Reduce High administrative overhead
Raise Productivity of employees
Top Placement on search
Create Donations from individuals, private foundation and
corporate entities to build up technical capacities
Non-paid volunteers worldwide
Profit Proposition for online
Encyclopedia Industry
Wikipedia
Britannica

Low
High
Offerings
People Proposition Analysis
Low
Cost
Strate
gy
Differen
tiation
Strategy
Eliminate Eliminates complexity of sharing information. (Co-
licensing of articles)
Eliminates wastage of human capital
Reduce Language barrier
The need for completely precise information.

Raise Motivation to share knowledge.
Democratic way of resolving issues among the
contributors.
Create Opportunity to share knowledge in open forum with other
people globally through a simple medium.
Community Culture
A free global database of articles comprising of about 31
million articles till date.
Eliminates
complexity
of sharing
information.
Eliminates
wastage of
human
capital
Language
barrier
Need for
completely
precise
information.
Motivation
to share
knowledge.
Democratic
way of
resolving
issues
Opportunity
to share
knowledge
Community
Culture
A free global
database of
articles
People Proposition
Wikipedia
Britannica
High
Low
Motivational Factors

Satisfies the urge of people to share knowledge and information with others.
Wikipedia is available in 270 languages thus making it truly global from the
perspective of overcoming language barrier.
Ease of sharing information or contribution to Wikipedia.
Opportunity to be recognized in a well-known online community that will
increase ones social quotient through contributions and the unique reward
system introduced by Wikipedia.
Democratic way of functioning and conflict resolution.
No advertisements are allowed on the website thus giving the users a glitch-
free experience.
No hidden fees and costs for accessing the information.
The staff are motivated to bear greater workloads being part of a great global
initiative for sharing information and handle about 27 times more visitors and
400 time more volumes than Britannica.
Wikipedias articles are constantly updated to keep the information available in
synchronization with global flux.






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