Blue Ocean Strategy Canvas & the Four Actions Framework Essay

Applying the robust Ocean Approach December 3, 2012 Problem Statement B-cycle charges an annual requital in range of $50-100 for membership thereby making its offer noncompetitive against vision bicycle merchandizers like Wal-Mart and Target who sell oscillations at exceedingly discounted and cheap hurts. summary Plan/ information Used/Key Assumptions Analysis Plan We will use the Blue Ocean Strategy try & the Four Actions Framework to assess steps B-Cycle needs to take to tolerate ahead of its red ocean bike dealership competitor. Key Assumptions1. buy a bicycle is a discretionary spend 2. There is a strong market for cheaper substitutes to owning a bicycle Data 1. B-Cycle charges an annual tap in range of $50-100 (Source B-Cycle website) for its membership while its usage fee is comparatively cheaper in range of $5 for 24 hours to $15 for 7-day schismal2. potbelly merchandizers like Wal-Mart & Target dominate Bicycle Dealership & Retail industry, which is a $6.1 bill ion industry, with 75% market share (Source IBIS Industry Report)3. A mass merchandizer like Wal-Mart sells a comfort & cruiser bike at a starting price of $69-884. B-cycle charges fees up to $1200 for loss and wrong to its bike (Source B-cycle website) Data Analysis & Conclusions B-cycle annual membership fee is at same price point as the retail price of a comfort or cruiser bike sold by WalMart which forges buying a bike a more tempting proposition as opposed to renting a bike.B-Cycle does not offer liability protection for bike damage and customers could end up paying up to $1200 in damage fees which makes it rattling expensive proposition compared to owning ones bike. In order for B-Cycle offering to compete effectively against mass merchandizing bicycle dealership like Wal-Mart, B-Cycle should make its price proposition more attractive for customers so they can rent a bike as opposed to buying a bike.Recommendations to solicitude Eliminate Membership Fees. Create a loyalty program for its members that rewards members ground on usage. Reduce customer liabilities against damage or loss of a bike by offering protection program. Increase locations across the farming to gain footprint and market share in the bike renting segment.