Blue ocean strategy for market development of melody kindyland™
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Date
2009
Authors
Chin Heng, Lim
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Abstract
Melody Kindyland™, an early childhood education service provider since 1992, a
well-known brand name in Penang, captures the largest market share in Penang. The
company has enjoyed tremendous growth for the past seventeen years, however the top
management foresees the challenges to maintain such good record as the market is becoming
more competitive. Therefore the top management of Melody Kindyland™ felt an urgent need
to develop a new strategic direction to sustain the continuous business growth and
profitability in the future. SWOT analysis and PEST analysis were utilized to understand the
company current status quo through internal brainstorming meetings. Blue Ocean Strategy
(BOS) was introduced and recommended for this case. A new value curve (strategy canvas)
was created according to the analytical tools and framework suggested by Kim and
Mauborgne (2004). The study outcome recommended Melody Kindyland™ to expand its
current business to the other states, priority on Selangor and Johor as the mean monthly
household income was similar or higher than those in Penang and also its high in population.
In other words, the affordability of the population using the company service was available in
these two states. Besides that, the new value curve based on Blue Ocean Strategy emphasizes
on friendly service, love culture and parents' training, became the new strategy for the
company to pursue in its business expansion plan. This is a great strategy as it fulfilled the
criteria of focus, divergence and compelling tagline. The new tagline will be "The Place
Children Love to Stay, Parents Love to Go .... ". Few recommendations were suggested to
Melody Kindyland™ for successful execution of the Blue Ocean Strategy.
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Keywords
Market development , Melody kindyland™