STRATEGIC MANAGEMENT

BLUE OCEAN STRATEGY

INDUSTRY: DATA MANGEMENT AND ANALYTICS

New cloud service provider (a hypothesis) aims to provide an agile, scalable and hybrid cloud
architecture and the ability to run analytical workloads wherever they want, irrespective of where
their data may be located. By also aiming to achieve this by diverging from the competitors by
using four action framework (Figure 1) and value curve as shown in strategy canvas (Figure 2)
having main characteristics of blue ocean strategy like focusing on higher offerings, diverging the
value curve compared to that of rivals, and a compelling tagline reflected in new offerings,

Four Action Framework (Figure 1):

Eliminate: Here the strategy is to eliminate costs related to non-centralised security and also
eliminating CSP lock-in by providing hybrid capabilities.
Reduce: Strategy is to provide both data management and analytics tool in a single platform,
making it cost effective by delivering multiple use cases and thus reduce Total Cost of Ownership.
Raise: Strategy here is to incorporate a Shared Data Experience (SDX) that enables enterprises to
bring their choice of workload to the data with a unified catalog that links to complex environments
Create: Providing user a means to operate anywhere using public or private enterprise
infrastructure with AI integrated operations and enabling open data platform.

Figure 1: Four Action Framework for New Cloud Service Provider

STRATEGIC MANAGEMENT

Figure 2: Strategy Canvas for a New Cloud Service Provider

VALUE CHAIN ANALYSIS

PRIMARY ACTIVITIES
Inbound logistics: Maintaining good relationship with suppliers that support the business and
operations, including hardware manufacturing and indirect services.
Operations: A good organisational structure with good employee engagement will lead to better
value creation.
Outbound logistics: Aiming at providing and managing services at optimal cost without
compromising the quality which in turn leads to customer satisfaction.
Marketing and sales: At this stage, highlighting the benefits and differentiation points of offered
services to persuade the customers that its offering is better than competitors through sales force,
advertising, promotional activities, pricing etc.
Services: The pre-sale and post-sale services offered by service provider will play an important
role in developing customer loyalty. Customer support centre to assist any problems will be
maintained.
SECONDARY ACTIVITIES
Infrastructure: Effective infrastructure in areas like quality management, legal matters handling,
accounting, financing, planning and strategic management is developed to strengthen competitive
position.
Human Resource Management: The effective HR management will be seen to reduce competitive
pressure based on motivation, commitment and skills of its workforce. 
Technology: It is linked to almost all activities in the company as it’s the digital era. A good R&D
department will have an edge in the competition.
Procurement: Processes involved in purchasing the inputs like equipment, machinery are carefully
optimised as it is linked to all activities in the value chain leading to develop a greater value to the
customers.