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Recession Proof Your Business_July 2009
- 1. How To Recession Proof How To Recession Proof Your Business Your Business Waterside Consulting LLC Waterside Consulting LLC Chicago, Illinois, USA Chicago, Illinois, USA Summer 2009 www.WatersideConsulting.net
- 2. Waterside Consulting Introduction Summer 2009 www.WatersideConsulting.net
- 3. About Waterside Consulting • Since 2005, Waterside Consultants have: – Provided strategic business consulting and advanced marketing consulting services using Blue Ocean Strategy. – Helped Fortune 1000 and mid-sized companies with both “high level” and tactical business marketing and strategy. – Served its clients in real time and operated virtually to optimize strategy development and resources associated with typical high- We’re the world’s end consulting. We’re the world’s first virtual first virtual Blue Ocean Strategy Blue Ocean Strategy consulting firm consulting firm Summer 2009 www.WatersideConsulting.net
- 4. Principals: Carrie Halle Senior Principal • Carrie Halle is a Senior Principal with Waterside Consulting. – Over 12 years of senior level marketing experience with consumer and industrial companies. – Held senior level marketing positions at Ameritech, Motorola, NEXTEL and Zurich. – CEO of a mid-size residential services firm. – Developed and conducted marketing campaigns which have generated from $250,000 to $500 million in revenue for small and large companies. – MBA from the University of Wisconsin-Madison, Major in Marketing, Dean’s List Honor student. – BBA from the University of Wisconsin-Madison, Majors in Marketing, Management and Advertising. Summer 2009 www.WatersideConsulting.net
- 5. Principals: Michael Bolden Lead Strategist • Michael Bolden is the Lead Strategist for Waterside Consulting. – Over 15 years work experience in strategic development and has practiced Blue Ocean Strategy since its introduction in 2005. – In recent work, developed a $200 million business for a “big box” retailer utilizing Blue Ocean Strategy. – Worked for Accenture, Ernst & Young, CSC and 3M. – Developed BOS 2.0 which is the next generation BOS focused around "owning market space" and dominating a given market. – MBA from University of Chicago Booth School of Business, Majors in Marketing, Policy (Strategy), Finance and Production Management, Dean’s List Honor student. – BS from Stanford University in Industrial Engineering. Summer 2009 www.WatersideConsulting.net
- 6. Recession Proofing Your Company Summer 2009 www.WatersideConsulting.net
- 7. The Great Tail Chase Launch more Revenues offensive decline tactics Expenses Profitability remain declines high or grow Cash flow becomes tight
- 8. Overcrowded Market Space Market Space A Launch more Revenues offensive Launch Launch decline tactics more more Expenses Revenues offensive offensive remain decline tactics tactics high or grow Launch more Revenues offensive decline tactics Expenses Profitability remain declines high or grow Launch Expenses more Profitability Revenues remain offensive declines decline high or grow tactics Cash flow Profitability becomes Cash flow Launch declines tight becomes more Expenses Revenues Profitability tight offensive remain decline Cash flow declines tactics becomes high or grow tight Launch Expenses more Profitability Revenues remain Cash flow offensive declines decline high or grow Launch becomes tactics more tight Profitability Revenues offensive Expenses decline Profitability declines tactics remain Launch Launch declines high or grow Cash flow more more Revenues Revenues becomes offensive offensive decline decline tight tactics tactics Expenses Cash flow Profitability remain becomes declines high or grow tight Expenses Profitability remain declines high or grow Expenses Expenses Cash flow Profitability Profitability Launch remain remain becomes declines declines more high or grow high or grow tight Revenues offensive Cash flow decline tactics becomes tight Cash flow Cash flow Launch becomes becomes more Revenues tight tight offensive Launch decline tactics more Revenues offensive Launch decline tactics more Revenues Expenses Launch offensive Profitability decline remain more tactics declines Revenues high or grow offensive decline tactics Launch Expenses more Profitability Revenues remain Cash flow offensive declines decline high or grow becomes tactics Expenses tight Profitability remain declines high or grow Expenses Profitability remain Expenses declines Cash flow Launch Profitability high or grow remain becomes more declines Revenues high or grow tight offensive decline Cash flow tactics becomes Expenses tight Cash flow Profitability remain becomes declines Cash flow Launch high or grow tight more becomes Revenues offensive Profitability tight decline tactics declines Launch more Cash flow Revenues offensive Expenses decline Profitability becomes tactics remain declines tight high or grow Expenses Cash flow Profitability remain becomes declines high or grow tight Expenses Profitability remain declines high or grow Cash flow becomes tight Cash flow becomes tight
- 9. Move Into New Market Space • Move out of the overcrowded market space. • Move into a new market space where there is no competitor – wide open playing field of potential revenues and profits. • Forward thinkers are shifting their focus from recession to recovery … and they will be poised for growth when the economy turns around.
- 10. How do we do this? Blue Ocean Strategy Summer 2009 www.WatersideConsulting.net
- 11. About Blue Ocean Strategy • Blue Ocean Strategy, by W. Chan Kim and Renee Mauborgne, is an international best seller with over one million copies sold and translated into a record-setting 41 different languages. • Published in 2005 by Harvard University Business School. • Waterside Consulting uses Blue Ocean Strategy Basics and our Proprietary 2.0 Version to help clients create uncontested market space and make the competition irrelevant. Summer 2009 www.WatersideConsulting.net
- 12. Blue Ocean Strategy (BOS) • Create uncontested market space • Make the competition irrelevant • Create and capture new demand • Break the value-cost trade off • Pursue differentiation AND low cost simultaneously Summer 2009 www.WatersideConsulting.net
- 13. Basic Definitions • Red Ocean: Markets or industries where competition is competing for greater share of existing demand that is typically stagnant or declining (the bloody battle). • Blue Ocean: Markets or industries where there is no competition because it is an untapped market space. The rules of the game are waiting to be written. • Value Innovation: Creating a blue ocean by creating a leap in value for buyers of your company’s products and/or services, thereby making the competition irrelevant. • Strategy Canvas: An analytical framework or tool that helps you to determine Value Innovation by looking at the factors the industry current competes on and plotting your product/service against your key competitors. Summer 2009 www.WatersideConsulting.net
- 14. “Real Life” BOS Examples Companies: – Federal Express – IKEA – Apple – Starbucks – Curves – Saturn It’s not just about It’s not just about – Nordstrom's technological technological advancements; advancements; • Product Examples: it’s about creating it’s about creating – Television a new market space a new market space – Computer – Cell Phones – RIM Blackberry – Nintendo Wii Summer 2009 www.WatersideConsulting.net
- 15. Strategy Canvas • The key tool and cornerstone for initiating and formulating BOS is the Strategy Canvas: – Dimensionalizes the major features or benefits of a product, company, or industry. – On the Y-Axis are the relative value utilities of high, medium, and low. – On the X-Axis are the dimensions, and on the Y-Axis is the relative scale or utility. – Blue Ocean Strategy’s most powerful tool. – Intuitive and simple, but yet non-obvious. Summer 2009 www.WatersideConsulting.net
- 16. Strategy Canvas Visual Mid-Size Compact Vehicle Value Curve Saturn vs. Average Mid-Size Compart Car Buyer 3 High 2.5 2 Medium Rating 1.5 1 Low 0.5 Style Gas Mileage Safety Reliability Price Factors Average Mid-Size Compact Car Buyer Saturn Car Buyer Summer 2009 www.WatersideConsulting.net
- 17. Four Action Framework Which of the factors that the industry Eliminate Eliminate takes for granted should be eliminated? Which factors should be reduced well below Reduce The industry standard? Reduce Which factors should be raised well above Raise Raise the industry standard? Which factors should be created that the industry has never offered? Create Create
- 18. Value Curve Visual Mid-Size Compact Value Curve Saturn vs. Mid-Sized Compact Vehicle Competitors 3.5 New Factors 3 2.5 2 Rating 1.5 1 0.5 0 Style Gas Mileage Safety Reliability Price No Haggle Employee- Made In On-Star Pricing Owned America Company Factors Average Mid-Size Compact Car Buyer Saturn Car Buyer Summer 2009 www.WatersideConsulting.net
- 19. Value Innovation The Cornerstone of Blue Ocean Strategy • Focus on making the competition irrelevant by creating a leap in Costs value for buyers and your company, thereby opening up new and uncontested market space. Value • Value Innovation places equal Innovation emphasis on value and costs. Blue Ocean Strategy seeks to create blue oceans by the pursuit of differentiation and low cost simultaneously, unlike Porter’s model. Buyer Value The Simultaneous Pursuit of Differentiation and Low Cost Summer 2009 www.WatersideConsulting.net
- 20. The “Secret Sauce” Behind Recession Proofing Your Company • With Waterside’s BOS Advanced Proprietary 2.0 (book due out later this summer), there are two immediate “winners” for companies looking to increase revenue: – Hyper Dimensionality – Selective Feature Reduction Summer 2009 www.WatersideConsulting.net
- 21. Rating 0 0.5 1 1.5 2 2.5 3 3.5 Requires license Requires upgrades Requires computer memory Feature Reduction (Elimination) Manages data and content on your computer Fights security risks Microsoft Windows Vista Factors Fast access to the internet Back up and restore Operating System Strategy Canvas capabilites Google Chrome OS Computer performance improvements Planned Google Chrome OS vs. Microsoft Windows Vista OS Hyper-Dimensional Features Runs without traditional Feature Reduction Visual computers Manages data and content in the cloud Hyper Dimensionality & Selective
- 22. Waterside Can Help Summer 2009 www.WatersideConsulting.net
- 23. Signs Your Company Is Sailing Into Rough Waters • Is your company “Chasing Its Tail” or experiencing the "Fatal Five" danger signs: – Slowed or stagnant growth – Decreased revenues – Increased costs – Lower profitability – Unpredictable cash flow Summer 2009 www.WatersideConsulting.net
- 24. Contact Us • 630.444.0844 • info@WatersideConsulting.net