Blue Ocean Strategy Canvas & the Four Actions Framework Essay

Applying the Blue Ocean Approach declination 3, 2012 Problem Statement B-cycle charges an yearbook hire in range of $50-100 for membership thereby making its offering uncompetitive against lot steering wheel merchandizers like Wal-Mart and target who stag wheels at highly discounted and cheap prices. abbreviation Plan/Data Used/ pigment Assumptions Analysis Plan We will single-valued function the Blue Ocean Strategy plane & the Four Actions Framework to assess go B-Cycle needs to take to stay frontward of its red ocean bike franchise competitor. Key Assumptions1. Purchasing a bicycle is a discretionary spend 2. in that location is a strong foodstuff for cheaper substitutes to owning a bicycle Data 1. B-Cycle charges an annual fee in range of $50-100 (Source B-Cycle website) for its membership tour its usage fee is relatively cheaper in range of $5 for 24 hours to $15 for 7-day letting2. Mass merchandizers like Wal-Mart & Target dominate Bicycle Dealership & sell in dustry, which is a $6.1 billion industry, with 75% market place share (Source IBIS Industry Report)3. A toilet merchandizer like Wal-Mart sells a comfort & prowl car bike at a scratch price of $69-884. B-cycle charges fees up to $1200 for loss and disablement to its bike (Source B-cycle website) Data Analysis & Conclusions B-cycle annual membership fee is at rattling(prenominal) price point as the retail price of a comfort or cruiser bike sold by WalMart which makes buying a bike a more tempting suggestion as opposed to renting a bike.B-Cycle does not offer liability protection for bike damage and customers could end up paid up to $1200 in damage fees which makes it very expensive proposition compared to owning ones bike. In order for B-Cycle offering to argue effectively against mass merchandizing bicycle enfranchisement like Wal-Mart, B-Cycle should make its price proposition more attractive for customers so they muckle rent a bike as opposed to buying a bike.Recommend ations to guidance Eliminate Membership Fees. Create a loyalty program for its members that rewards members based on usage. Reduce customer liabilities against damage or loss of a bike by offering protection program. Increase locations crosswise the country to gain footprint and market share in the bike rental segment.