Strategy Chapter 10

Name the types of free business models

- Cross-Sell Strategy (e.g., Mint.com) - Free Upsell (Freemium: Free to Premium) (e.g., Skype) - Third-Party Pay Strategy (e.g., Google, Craigslist) - Bundling Strategy (e.g., Cellphone service, printers)

What are the categories of innovative strategies (7 categories)?

- Value Chain Reconfiguration to Eliminate Activities - Low-End Disruptive Innovations - High-End Disruptive Innovations - Value Chain Reconfiguration to Allow for Mass Customization - Blue Ocean Strategy—Create New Markets by Targeting Non-Consumers - Create a Platform to Share Assets - Free Business Models

Examples of Value Chain Reconfiguration to Eliminate Activities

Amazon & Barnes and Noble Netflix & Blockbuster 1800-mattress Southwest & hub and spoke carriers

Why don't more companies attempt low-end disruption?

Because you'd have to have some type of cost advantage, low-end can be easily duplicated and there's less of brand loyalty

Examples Value Chain Reconfiguration to Allow for Mass Customization?

Build-a-Bear, Dell Direct (customized computers), My Twinn

What is Incremental Strategy?

Building on a firm's established knowledge base to create minor improvements to the product or service a firm offers

Blue Ocean Strategy examples?

ChotuKool (49$ refrigerator that runs on battery)

Types of innovative strategy

Incremental & Radical

What is Radical Strategy?

Innovation that draws on a different knowledge base, technologies, or methods to deliver value in a truly unique way

Describe the stages of innovative disruption

Introduction, Growth, Maturity, Decline

How does low end disruption work? Why is it effective?

Producing a low-cost product or service for the low-end or most price-sensitive segment of the market, and then gradually moving upmarket as the product or service improves its technology and processes. (Honda & Harley Davidson)

Examples of high-end disruption?

Starbucks, Apple, Fedex, Tesla