apply blue ocean strategy to develop new services for fsi company

National economics university Ne u business s c hoo l  Nguyen hung son APPLY BLUE OCEAN STRATEGY TO DEVELOP NEW SERVICES FOR FSI COMPANY supervisor Prof. Dr. TRAN THO DAT Hanoi – 2013 2 ACKNOWLEDGEMENT I would like to express my gratitude to all those who gave me the possibility to complete this thesis. Firstly I want to sincerely thank to Board of Leader of BSNEU, lecturers, and management staffs who guide, teach, support, help me in all the time I learnt and research in the Institute. Knowledge and skills I learned from this course help me so much not only to complete this thesis but in my work and my life. I deeply indebted to my supervisor Prof. Dr. Trần Thọ Đạt, Vice president of National Economics University, whose help, stimulating suggestions and encouragement helped me in all the time of research for and writing of the thesis. I want to sincerely thank to BOD of FSI Technology Development and Trading Investment JSC for giving permission to commence this thesis in the first instance, providing me with the effective data. I also gratefully acknowledge the assistance from all of my colleagues at that helped to supply relevant written material and support me much for the completion of the thesis. I have further more to thank to my wonderful EMBA 9B classmates for their encouragement, support in doing Master of Business Administration in NEU. Ha noi, November 2013 Nguyen Hung Son. 1 TABLE OF CONTENTS ACKNOWLEDGEMENT 1 TABLE OF CONTENTS 2 ABBREVIATION 5 LIST OF CHARTS 6 LIST OF FIGURES 7 LIST OF TABLES 8 CHAPTER 1 INTRODUCTION 9 Rationale 9 Research Objectives 10 Research Questions 10 Research Methodology 10 1.4.1.Research process 10 1.4.2.Data collection 11 1.4.3.Data analysis 12 Research Scope 12 1.5.1.Research object: 12 1.5.2.Research scope: 12 Research Structure 12 CHAPTER 2 THE THEORETICAL BACKGROUND ON BLUE OCEAN STRATEGY 14 Nature of Blue Ocean Strategy and value innovation model 14 2.1.1.Nature of Blue Ocean Strategy 14 2.1.2.Value Innovation – The Cornerstone Of Blue Ocean Strategy 15 Tools for developing new products and services 17 2.2.1.Identify current values of the service on the market 17 2.2.2.Select new value for new products and services according to 4 actions framework 20 2 Conditions for deploying new services 23 2.3.1.Conditions about cognition 23 2.3.2.Conditions about Resources 24 2.3.3.Conditions about Innovation 24 2.3.4.Conditions about Political 25 CHAPTER 3 DEVELOPING NEW SERVICES FOR FSI 26 Overview Of Fsi Technology Development And Trading Investment Jsc 26 Identify current value on vietnamese office machine market 28 3.2.1.Overview of the market 28 3.2.2.Characteristics of the office machine supplying market 30 3.2.3.Current value curve of office machine supplying services on the market 35 Select new values for Fsi new services 36 3.3.1.Eliminate 37 3.3.2.Reduce 39 3.3.3.Raise 41 3.3.4.Create 44 3.3.5.Summary on value curve of the new service 47 CHAPTER 4 SOLUTIONS AND CONDITIONS FOR DEPLOYING NEW SERVICES IN FSI 49 Orientation of Fsi‘s strategy on supplying office machines 49 Solutions for implementing new services in fsi 50 4.2.1.Solution for awareness of Leaders and FSI’s staff 50 4.2.2.Solutions for optimization of resources 51 4.2.3.Solutions to save cost and expenses 53 4.2.4.Invest more to R&D activities 54 4.2.5.Other Solutions 55 CONCLUSION 56 3 LIST OF REFERENCES 57 APPENDICES 58 4 ABBREVIATION ADF Automatic Document Feeder BOD Board Of Directors BOM Board Of Managers BOS Blue Ocean Strategy CEO Chief Executive Officer DMS Document Management System FSI FSI Technology Development and Trading Investment Joint Stock Company ICT Information and Telecommunications Technology IDC International Data Corporation IT Information Technology VCCI Vietnam Chamber of Commerce and Industry VND Vietnamese Dong 5 LIST OF CHARTS Chart 3.1: ADF scanners market volume (units) in 2008 – 2011 29 Chart 3.2: ADF scanners market share in 2010 30 Chart 3.3: The present strategy canvas of FSI’s office machine 36 Chart 3.4: The level of interest in the diversify of products and services 38 Chart 3.5: Important Level of payment policy 40 Chart 3.6: Important Level of product quality 42 Chart 3.7: Important Level of product quality 43 Chart 3.8: New value canvas among FSI and main competitors 48 6 LIST OF FIGURES Figure 1.1: Research Process 10 Figure 2.1: Value Innovation Model in BOS 16 Figure 2.2: The four Actions Framework in BOS 21 Figure 2.3: The example of the Eliminate-Reduce-Raise-Create Grid in BOS 22 Figure 3.1: Printer market share Q III - 2010 28 Figure 3.2: Distribution Channel of Manufacturers 31 Figure 3.3: The Eliminate-Reduce-Raise-Create Grid 37 7 LIST OF TABLES Figure 1.1: Research Process 10 Figure 2.1: Value Innovation Model in BOS 16 Figure 2.2: The four Actions Framework in BOS 21 Figure 2.3: The example of the Eliminate-Reduce-Raise-Create Grid in BOS 22 Figure 3.1: Printer market share Q III - 2010 28 Figure 3.2: Distribution Channel of Manufacturers 31 Figure 3.3: The Eliminate-Reduce-Raise-Create Grid 37 8 [...]... limited in dealers customers Research Structure 13 The structure of research includes 4 main chapters: Chapter 1: Introduction Chapter 2: The theoretical background on blue ocean strategy Chapter 3: Developing new services for FSI Chapter 4: Solutions and conditions for deploying new services in FSI Company 14 CHAPTER 2 THE THEORETICAL BACKGROUND ON BLUE OCEAN STRATEGY Nature of Blue Ocean Strategy and value... of Blue Ocean Strategy Blue ocean strategy is a strategy that goals are archived by building, implementing and develop a new market in which there are no competition or competition is not needed Normally, a space of market is formulated by 2 oceans: red ocean and blue ocean Red ocean is the market which it’s boundary is defined and companies win by competing and knock out the competitors In red ocean, ... for FSI company as the subject of the thesis 10 Research Objectives The thesis includes these objectives:  Identify current values in supplying office machine service  Analyze current values that FSI providing to customers in supplying office machines service  Apply four actions framework of BOS to develop new service for FSI  Analyze conditions and recommend solutions for FSI implementing the new. .. To develop new service for FSI company 1.5.2 Research scope: - Contents of research: focusing on apply blue ocean strategy to analyze office machine supplying service to develop new services - Time scope: The secondary data will be collected from 2009 to 2012 The primary data will be collected in 2013 - Geographical scope of research: The thesis will cover all the market of FSI Survey questionnaires... all activities of the company in the strategy to archive differentiation or low cost, the strategy set all activities in the strategy that follow both differentiation and low cost 2.1.2 Value Innovation – The Cornerstone Of Blue Ocean Strategy What consistently separated winners from losers in creating blue oceans was their approach to strategy The companies caught in the red ocean followed a conventional... money for customers Value about Customer care services Customer services include answering all customers’ reply, support customer, activities to increase customers’ satisfaction and retain their loyalty It also includes customer services at contact points (authorize store, authorized warranty center…) 20 Value about Prestigious of supplier If all values above are similar between suppliers, customers... us to determine whether products or services have been overdesigned in the race to match and beat the competition Here, companies over serve customers, increasing their cost structure for no gain The third question pushes us to uncover and eliminate the compromises your industry forces customers to make The fourth question helps you to discover entirely new sources of value for buyers and to create new. .. and external—will fight to protect their positions, and their resistance can seriously damage and even derail the strategy execution process 26 CHAPTER 3 DEVELOPING NEW SERVICES FOR FSI Overview Of Fsi Technology Development And Trading Investment Jsc Overview FSI Technology Development and Trading Investment Joint Stock Company has been established on 06 November 2007 pursuant to Business License No:... make customers sure about quality of product and services and believe in all commitment from sellers 2.2.2 Select new value for new products and services according to 4 actions framework To reconstruct buyer value elements in crafting a new value curve, BOS has developed the Four actions framework As shown in figure 2.2, to break the tradeoff between differentiation and low cost and to create a new value... makes the creation of blue oceans a sustainable strategy Blue ocean strategy integrates the range of a firm’s functional and operational activities In contrast, innovations such as production innovations can be achieved at the subsystem level without impacting the company s overall strategy An innovation in the production process, for example, may lower a company s cost structure to reinforce its existing . object: - To develop new service for FSI company. 1.5.2. Research scope: - Contents of research: focusing on apply blue ocean strategy to analyze office machine supplying service to develop new services. -. BLUE OCEAN STRATEGY 14 Nature of Blue Ocean Strategy and value innovation model 14 2.1.1.Nature of Blue Ocean Strategy 14 2.1.2.Value Innovation – The Cornerstone Of Blue Ocean Strategy 15 Tools. on blue ocean strategy Chapter 3: Developing new services for FSI Chapter 4: Solutions and conditions for deploying new services in FSI Company 13 CHAPTER 2 THE THEORETICAL BACKGROUND ON BLUE