A classic example of a blue ocean strategy in action is the development of the yellow tail wine brand by australian winemaker casella wines. Value curve yellow tail wine australian casella wines created a blue ocean strategy that, in just two years, caused its yellow tail wine to. Beer, spirits and readytodrink cocktails, which capture more than three times as much in consumer sales as wine. Australian casella wines created a blue ocean strategy that, in just two years, caused its yellow tail wine to become the fastest growing brand in the histories of both the australian and the u. The wine called yellow tail quickly became the number one imported wine into the usa, surpassing the wines of france and italy. The horizontal axis captures the range of factors the industry competes on and invests in. A blue ocean is created in the region where a companys actions favourably affect both its cost structure and it value proposition to buyers. Casella wines used the blue ocean strategy to explore and create new uncontested market space. First, in a blue ocean strategy you essentially make the competition irrelevant by breaking out of the red ocean and creating new demand in uncontested market space. The australian winery casella wines addressed these problems with a. The database and research have continued to expand. Casella wines creates yellow tail, a blue ocean wine that succeeded by eliminating complexity, elitism and consumer confusion and creating a fun simple image that non wine drinkers could enjoy. Blue ocean strategy teaches that entrepreneurs should concentrate on noncustomers and understand how to convert them into customers. Jan 31, 20 their book, titled blue ocean strategy, was the result of research into innovative companies that created new industries and markets, which they nicknamed blue oceans.
Because of widespread access to information and resources today, it becomes too easy for businesses to enter an already established market. Casella wines began its meteoric rise by taking a different perspective on the wine market. Fancy wines tried to offer more of everything tasting complexity, refined image, aging, vineyard history and prestige, and price. It is being published in a recordbreaking 44 languages and is a bestsel w. In the 1990s, wine in the united states occupied two segments. Blue ocean strategy how to create uncontested market space.
To customers, they were largely all different from box wines in the same way. Mar 18, 2020 the strategy canvas from blue ocean strategy visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. Blue ocean strategy,branding,corporate strategy,competition,marketing strategy,international marketing. List the factors the customer cares about, and current dimensions of competition.
Blue ocean strategy how to create uncontested market. May 28, 2020 this idea of blue ocean strategy was initially introduced in 1988 by prof. The muchtalkedabout book, blue ocean strategy, shows companies how to expand by. By looking at the alternatives of beer and readytodrink cocktails and thinking in terms of noncustomers, by redrawing the strategy canvas of the u. May 10, 2019 blue ocean strategy shows how strategy can shape structure in an organizations favor to create new market space.
Chan kim and renee mauborgne describe the space where most companies compete as the red oceana space bloodied by fierce competition. Casella wines created a blue ocean strategy that, in just two years, caused its yellow tail wine to become the fastest growing brand in the histories of both the australian and the u. Pdf blue ocean strategys fatal flaw manuel angelucci. Pdf purpose from humble beginnings, casella wines has become australias. Instead of offering wine as wine, casella created a social drink accessible to everyone. The case is accompanied by a 2part video called creating a blue ocean in the us wine industry that is free for instructor download. Casella also discovered that most americans actually found wine a turnoff. This wine industry case study, accompanied by a twopart video, examines the. They discovered that by coming out with a new offering, which was nontraditional and fun, they appealed to the 3 times as many u. Casella wines, an australian winery, decided to decomplex wine for the sake of intimidated unpretentious adults. There is, however, such a thing as a successful business strategy. Australian company casella wines analyzed the portrait of americans who do not drink wine.
The case comes with a comprehensive teaching note and is excellent for both mbas and executives. May 04, 2016 cirque du soleil and casella wines are just two examples of organizations who successfully broke away from the competitionbased strategy and found untapped markets where competition was irrelevant. Jan 07, 20 casella wines, not then a household name in their and my native australia, saw a potential blue ocean in the us, where many people were not drinking wine, thought that was for other people read sophisticates and were basically being ignored by the us wine industry. Hill from michigan state university and eventually developed in to the blue ocean strategy book. However, yellow tail changed this image for non wine drinkers. Kim and mauborgne use casella wines yellow tail line of wines as an example of a successful blue ocean strategy. In their book, kim and mauborgne outline many different tactical. The other classic example from the blue ocean strategy book is.
Mar 20, 2020 yellow tail wines and blue ocean strategy. Yellow tails inclusion ranks it alongside other greats including cirque du soleil, south west airlines, starbucks and the model t ford. Bookreport,blueoceanstrategy blue ocean strategy how to. Their book, titled blue ocean strategy, was the result of research into innovative companies that created new industries and markets, which they nicknamed blue oceans. Cirque du soleils blue ocean strategy 1252 words cram. Yellow tail wines blue ocean strategy example shortform books.
Consequently, casella wines yellow tail brand targeted the beer and readytodrink cocktails in the u. By using the strategy canvas, the company identified 7 key industry factors in the us wine industry. Casella wines creates yellow tail, a blue ocean wine that succeeded by. I share this with you because whether you are ceo leading a fortune 500 company, department head, or meeting professional the blue ocean strategy. Casella wines they used a blue ocean strategy to find an uncontested ocean of opportunity and dominate the market for over a decade, by creating a new category of wine, and become the bestselling wine in australian and united states history. Yet, to what extent can casella wines success be attributed to the companys making retail employees ambassadors of yellow tail by giving them australian outback. Casella wines was the first company to put both red and white wine in the sameshaped bottle, a practice that created. The book metaphorically compares the market today to red and blue oceans. It accomplished this by applying the blue ocean strategy framework.
Summary of the first four chapters of the international bestseller blue ocean strategy. Think about what happens before, during, and after your product is used. Chan kim and renee mauborgne the blue ocean strategy book debunks the popular notion that in order to win in business, we must beat the competition. Part b explores, through interviews with the principal players behind the launch of yellow tail, the development and execution of casellas blue ocean strategic move. Mauborgne outline this concept in a book titled, blue ocean strategy. The case and the video dvd come with a comprehensive teaching note and are excellent for both mbas and executives. Casella wines of australia shifted the strategy canvas of the u. How to reinvent your business blue ocean strategy by w chan. Every blue ocean will eventually turn red create an. Apr 16, 2020 the blue ocean strategy is composed of many different strategic steps, but in essence, this is what you should try to focus on.
This strategy follows the approach recommended by the ancient master of strategy suntzu in the quote above. They redefined, through their blue ocean strategy, a wine that was fun to drink and easy to buy. To create the framework of blue ocean strategy, the authors analyzed more than 150 strategic moves made by companies between 1880 and 2000. Successfully implemented, a blue ocean strategy provides strong barriers of imitation, giving a substantial. The australian firm casella wines examined the wine industry from.
By following the blue ocean strategy, casella wines created the demand of its product, yellow tail. Blue ocean strategy for your daily business roland dg. Blue ocean strategy is based on over decadelong study of more than 150 strategic moves spanning more than 30 industries over 100 years. Analyse how your products and services can be offered in different and new ways by targeting them at a very specific problem or demand that no one is really focusing on. Chan kim and renee mauborgne are professors of strategy at insead and codirectors of the insead blue ocean strategy institute. Yet, to what extent can casella wines success be attributed to the companys making retail employees ambassadors of yellow tail by giving them australian outback clothing. The only way to beat the competition is to stop trying to beat the. Jan 01, 1994 his book blue ocean strategy, coauthored with renee mauborgne, has sold 3. It decided to create new wine drinking rules, and to make a fun wine, sweet and fruity, to suit any taste. Oct 21, 2007 casella wines created new customer experiences for wine drinking. Value curve yellow tail wine australian casella wines created a blue ocean strategy that, in just two years, caused its yellow tail wine to become the fastest growing brand in the histories of both the australian and the u. Let us consider an example of a company which supposedly followed kim and mauborgnes blue ocean strategy. President, simon associates management consultants corporate anthropologist the much talkedabout book, blue ocean strategy shows companies how to expand by creating new market spaces or industries that have little or no competition. Made by group d of the minor global trendwatching 2015.
It decided to create new wine drinking rules and to make a fun wine, sweet and fruity, to suit any taste. Casella wines found that the mass of american adults saw wine as. For the last ten years, blue ocean strategy has challenged business leaders. Jul 23, 20 value curve yellow tail wine australian casella wines created a blue ocean strategy that, in just two years, caused its yellow tail wine to become the fastest growing brand in the histories of both the australian and the u. In 2001, the australianbased wine company casella winery was looki.
As they explain it, the blue ocean strategy is about the simultaneous pursuit of. Sep 02, 2008 let us consider an example of a company that supposedly followed the blue ocean strategy. Blue ocean strategy is a business term that first appeared in the book of the same name by w. All customer journey customer loyalty customer strategy omnichannel personalization voice of customer forget online vs.
In 1999, casella wines launched a value brand called carramar estate in. Sep 01, 2005 in the space of just two years, a red wine produced by the casella wines australian winery emerged as the fastestgrowing brand in the histories of both the australian and us wine industries. However, casella wines found a chink in the traditional markets armor. How to reinvent your business blue ocean strategy by w. Strategy canvas from blue ocean strategy shortform books. Blue ocean strategy argues that cutthroat competition results in nothing. Blue ocean pedagogical materials, used in over 2,800 universities and in almost every country in the world, go beyond the standard casebased method.
A couple of examples from the book brand together by nicholas ind, clare. Its methodology provides companies with an escape route from the intense competition over the same market space, as we just discussed. It is based on the view that market boundaries and industry structure are not given and can be reconstructed by the actions and beliefs of industry players. Casella wines set out to create a successful new wine product. This case examines the strategic move executed by yellow tail that made it the number one imported wine and the fastest growing brand in the history of the us and australian wine industries. The research focused on discovering the common factors that lead to the creation of blue oceans and the key differences that separate those winners from the mere survivors and those adrift in the red ocean. Characteristics of blue ocean strategy once these actions have been taken, look to see if your strategy has the three characteristics of a good blue ocean strategy. In the space of only two years, yellow tail emerged as the fastestgrowing brand in the histories of both the australian and the u. They discovered that by coming out with a new offering, which was nontraditional and fun. This article is based on insights from blue ocean strategy by w. Casella wines aimed to address the frustrations of these. Casella wines yellow tail, which is an australianbased winery, managed to create a blue ocean in the overflooded wine market in the us by mainly focusing on reducing sophisticationsee eliminate and reduce in the grid and attracting non wine users like beers and readyfordrink cocktail lovers create in the grid also to their product.
Chan kim is the codirector of the insead blue ocean strategy institute and a chair. Marketing strategy every blue ocean will eventually turn. Casella wines created yellow tail, a wine whose strategic profile broke from the competition and created a blue ocean. The muchtalkedabout book, blue ocean strategy, shows companies how to expand by creating new market spaces or industries that have little or no competition. Blue ocean strategy is a business term that first appeared in the book. Casella wines set out to create a successful new wine.
Therefore, people started buying this wine and casella wines was succeeded to open the show more content blue ocean strategy is not only to reduce cost but giving new excitement and demand for customers. This is another example of a classic differentiation strategy. Jun 06, 2018 casella says his company was already on a path to differentiate itself from competitors and find untapped markets before the term blue ocean strategy was defined. Yet, to what extent can casella wines success be attributed to the companys making retail employees.
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