There are four steps to making a vegan product a blue ocean strategy idea. The first step would be to make sure that there is an exceptional buyer utility in the business idea. (DC, 2009) Is there a certain reason(s) that large amount of people will need/want this? Is there proof that the product/service idea will be extremely desired by buyers? For example, if a product were to come out on the market that was vegan (suitable for food allergy diets and vegan by choice diets) that was very low calorie, very nutritious, very low cost, and tasted and looked like Pizza Hut pizza, then this product would fit the desired profile of a exceptional buyer utility.
Price would be the next step in the sequences of Blue Ocean strategy. The price of the product/service needs to be low enough that the masses can easily obtain the product/service. It is very important for the Blue Ocean strategy that when the product comes out on the market, that the price is set low from the first day. Most products like to test the market by coming out priced higher than needed, to see the response in buyers, then lower the prices as market demands. Though again with a Blue Ocean strategy product (such as the vegan Pizza Hut like product) it needs to the come to market priced low.
The third step would be cost. Notice that cost is different than price. Price is what the item/service will be priced to buyers. While cost is the cost it takes to make and/or provide. It is important if the vegan Pizza Hut like product is to be able to come to market at a fair/desired price, that the company is able to make it at a low enough cost to still be able to produce the product and still make a healthy profit.
The final step in the sequence of Blue Ocean strategy is adoption. This means that the company is able to tackle (adoption) hurdles (that are unexpected) as they come along as the product/service is trying to come to market. These forces may come from employees, business partners, or even the general public. (Mauborgne, 2010) For example, Pizza Hut might place up hurdles for this product to come to market, because they do not want a healthier version of their product on the market. It is important for the company, in order to be successful, to be able to handle problems (or hurdles) as they come.
Works Cited
DC, H. B. (2009, March 10). Introduction to Innovative Strategies for Entrepreneurs. Retrieved March 14, 2012, from Harvard Business School Club of Washington DC:
http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=5&ved=0CEwQFjAE&url=http://www.hbsclubwdc.net/images.html?file_id=t7Fb9vR8dT8=&ei=491hT7zcNK-GsAKgrvCkDA&usg=AFQjCNHPDjkAHmHoyWPbHl-fcjeo4ZY0-A&sig2=Z-RZkj7umUYNXI9rm7f5jg
Mauborgne, K. &. (2010). Adoption Hurdles. Retrieved March 15, 2012, from Blue Ocean Strategy:
http://www.blueoceanstrategy.com/abo/Blue_Ocean_Strategy_Glossary_Lookup.php?Term=adoption-hurdles
