Understanding that some units within the organization

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Unformatted text preview: ntial performance gains) are in their organization, and redistribute the company’s resources from cold spots to hot spots. Understanding that some units within the organization have excess resources while lacking other types of resources, they also engage in horse trading: they trade a given unit’s excess resources in one area for another unit’s excess resources to fill remaining resource gaps. 16 © 2008 Kim & Mauborgne. All Rights Reserved. S Blue Ocean Strategy Dictionary Settlers are a company’s businesses or products/services that offer more or less the same value to buyers as the rest of the industry. These are me-too businesses. Although they are often today’s cash cows, settlers will generally not contribute much to a company’s future growth because they are stuck within the red ocean of competition. See Pioneer-Migrator-Settler (PMS) Map. Six Paths Framework is the tool mangers use to look across the six conventional boundaries of competition to systematically reconstruct market assumptions to create new market space. These are: looking across alternative industries instead of focusing on competing within an industry; looking across strategic groups within industries instead of a company confining itself to established strategic groups; looking across the chain of buyers instead of focusing on the same buyer group as the rest of the industry; looking across complementary products and services instead of a company limiting itself to the scope of...
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This note was uploaded on 10/21/2012 for the course ECON 45 taught by Professor Mikel during the Spring '12 term at Art Institute of Atlanta.

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