Description:
In July 2001, Australia's Casella Winery introduced Yellow Tail into the 'red ocean' of the highly competitive U.S. wine market. Small and unknown, they expected to sell 25,000 cases in their first year: in fact, they sold nine times that amount. Yellow Tail rapidly became the number one imported wine and the fastest growing brand in the history of the U.S. and Australian wine industries. It is the overall best selling 750ml red wine, outstripping California, French, and Italian brands. And by the end of 2005, Yellow Tail's cumulative sales were tracking at 25 million cases.
Description:
If we look back over the last 150 years of business history we find that businesses periodically break away from the competition to create and capture 'blue oceans' of new market space. Across industries as diverse as cement production and financial services, companies periodically yet consistently reconstruct market boundaries and create new demand--often giving rise to entirely new industries--in the quest for highly profitable growth. Yet there is very little understanding of the strategic logic behind these breakthrough strategic moves. Specifically, little is known as to whether there is a pattern behind these strategic moves, in which case a strategy of new market creation can be built; or whether these strategic moves exhibit no unifying logic, in which case strategy for new market creation is a moot issue. To answer these questions, this visual video case study examines three representative industries that closely touch peoples' lives: automobiles--how people get to work; computers--what people use at work; and movie theaters--where people go after work.
Cirque du Soleil very successfully entered a structurally unattractive circus industry. It was able to reinvent the industry and created a new market space by challenging the conventional assumptions about how to compete. It value innovated by shifting the buyer group from children (end-users of the traditional circus) to adults (purchasers of the traditional circus), drawing upon the distinctive strengths of other alternative industries, such as the theatre, Broadway shows and the opera, to offer a totally new set of utilities to more mature and higher spending customers. The case series is designed to serve a variety of purposes in the value innovation and creating new market space teaching module of an MBA strategy course or executive education programme. The case series can be equally used individually in a standalone module on value innovation or as part of a sequence of three to four sessions. In both instances, the instructor can best use it to cover the following topics: (1) the value innovation logic (as compared to industry and competitive analysis); (2) the concept of value curve; and (3) the six paths analysis for creating new market space. **ecch European Case Awards Category Winner 2006**
As of November 2001, NTT DoCoMo is the only company that has been able to make money out of the mobile Internet. This case study describes how, in a very competitive industry engaged in a technology race and strong price erosion, NTT DoCoMo has been able to achieve superior performance when it launched in February 1999, its novel i-mode services. It was an immediate and explosive success. DoCoMo now exceeds its parent company in terms of market capitalisation as well as potential for profitable growth as we enter the age of mobile Internet. This case offers a value innovation perspective to analyse the success of i-mode with a particular emphasis on the business model used to exploit the i-mode innovation of DoCoMo.