Blue Ocean Strategy Examples : China Mobile’s Blue Ocean connection
“There’s no such thing as a permanently great company or a permanently great industry. All industries rise and fall as do companies. However, there are permanently smart strategic moves” - W. Chan Kim & Renee Mauborgne, from Chief Executive Magazine article “Flouting Conventional Wisdom” (May 2003).
When you are at the helm of a company with over 330 million subscribers, which transmits 1.2 billion text messages every day and also maintains an expansive network stretching from Hong Kong to the Himalayas and from Beijing subways to atop Mt. Everest, where do you turn for inspiration for your next strategic move? As Forbes reports, China Mobile’s CEO Wang Jianzhou looks to Blue Ocean Strategy:
Wang, a fan of Insead management professors W. Chan Kim and Renée Mauborgne, talks about China's hinterland as a classic "blue-ocean market," where the company can cast its net widely without worrying about getting tangled up with the nets of rivals. To be sure, the fish are tiny: In many of China's rural communities, per capita income is less than US$ 50 a month. But China Mobile's low cost structure assures comfortable margins serving such small fry.
When you are at the helm of a company with over 330 million subscribers, which transmits 1.2 billion text messages every day and also maintains an expansive network stretching from Hong Kong to the Himalayas and from Beijing subways to atop Mt. Everest, where do you turn for inspiration for your next strategic move? As Forbes reports, China Mobile’s CEO Wang Jianzhou looks to Blue Ocean Strategy:
Wang, a fan of Insead management professors W. Chan Kim and Renée Mauborgne, talks about China's hinterland as a classic "blue-ocean market," where the company can cast its net widely without worrying about getting tangled up with the nets of rivals. To be sure, the fish are tiny: In many of China's rural communities, per capita income is less than US$ 50 a month. But China Mobile's low cost structure assures comfortable margins serving such small fry.
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