Strategic Framework - Blue Ocean

The Blue Ocean Strategy - A Look At AirBnB

This entry will analyze AirBnB main bold moves, aiming to collect them into a strategic framework: the Blue Ocean Strategy, focusing on the Create-Raise-Reduce-Eliminate Grid applied on the main competing factors in the industry. The grid will outline possibilities of enhancements as well and would not reflect only what is known to be available at the moment of writing.

The Blue Ocean Strategy - How Did DoorDash Conquer the US Market

DoorDash managed to become market leader in the food delivery industry, claiming 45% market share in the US and taking over giant competitors, such as Uber Eats and GrubHub.

The company certainly has a strong strategy, projecting strong growth for 2022 as well, with an order volume of $48b-$50b, meant to be achieved through vertical expansion of services offered and through regional expansion.

This entry will analyze DoorDash main bold moves, aiming to collect them into a strategic framework: the Blue Ocean Strategy, focusing on the Create-Raise-Reduce-Eliminate Grid applied on the main competing factors in the industry.

For some of the main aspects mentioned above, we will dive deeper into some interesting details:

Audience segmentation & Refined Insights for B2B (restaurants)

Uncover underserved restaurants in smaller cities and suburbs, considering specific market segments, such as restaurants which do not have the means to deliver their food and smaller restaurants not having an adequate amount of space for people to sit.

„Drive“ App for Restaurants - Customer Insights

Customer Insights about real time demand of products, real time neighborhood specific data and delivery times, acting as an acquisition channel for restaurants and helping them retain their customers, providing restaurants access to the “Dasher” fleet of drivers, customizable delivery options, and direct point-of-sale integration.

These bold actions mentioned above, along with others, allowed DoorDash to continuously increase their order volume, beyond the peak during the pandemic, achieving a 70% growth for their oder volume in 2021.

The Blue Ocean Strategy

Innovation happens quite often by looking at alternative industries and applying an analogous approach.

The Blue Ocean Strategy has as goal the creation of a value curve which has focus, divergence, when compared to other players, and a compelling tagline. It uses eight principles for its value creation.

There are four actions meant to arrive at the points used to determine the trajectory of the value curve:

Reduce
Raise
Eliminate
Create

Not all actions have to be applied though, in order to achieve an excellent positioning in the market, creating new demand.

The smart application of these can lead to a competitive product offering which beats competition at an attractive price.

See accompanying images for examples on how this strategy could be applied in aviation and ground transportation.

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