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The Green Lake Strategy – A for market design – Manoel Pimentel Medeiros

Create sustainable market ecosystems beyond Blue Ocean Strategy—learn how to design green lakes within red oceans, build meta-products, and grow through strategic franchising

The strategy of oceano azul, is a book that teaches how to create and work with markets, and it goes from finding the red ocean full of competition, where the entry into this market is usually based on leveraging and differentiating at low cost.

But “how can we escape the red ocean” find unexplored markets where you can be alone, or where competition is irrelevant, where differentiation by innovation can be done through value generated, which is directly pointed to by the market.

The blue ocean may take you to nirvana. A point of discomfort arises with the questioning about whether someone has already created an ocean?

How do we get out of one ocean and enter another?

Can we think in terms of competitive advantage?

Or perhaps competitive implication? What These Portfolios Are Missing

What These Portfolios Are Missing
The implication of competition asks what value, rarity, difficulty of being imitated can be leveraged from the product (http://en.wikipedia.org/wiki/VRIO).

Products are copiable!

Strategies aren’t, or perhaps it’s more difficult!

Then shall we apply VRIO to strategies? What These Portfolios Are Missing

What These Portfolios Are Missing
You discover the ocean, but you create the lake!

So Manuel presents a new idea for not leaving the red ocean for the blue one, but rather creating an internal ecosystem within the red ocean through a green lake, which can be developed, designed, and later evolved, allowing for future connections to new markets in the blue ocean.

The green lake and the creation of this ecosystem begin with the creation of a strategy beyond the product, with a market design that shows how your product will behave internally within a market or facing a public.

But how do we know what our product is, so that we can create this ecosystem?

Manuel presented Xis gaúcho, a spectacular and common product in the Porto Alegre market, but uncommon in the Brazilian market, will another sandwich in Brasília be copiable, what is its rarity or VRIO?

According to Manuel, the product is easily copiable, but the strategy that facilitates it, in terms of logistics and other points are completely and concretely elaborated.

Green lake going to the blue ocean within the red sea.

Growth can be grown from within the lake as in the case of McDonald’s franchises and Boticário’s franchises, where little work is done for selling these franchises, within this ecosystem growth occurs with various franchises based only on internal success, the lake expands.

Imagine Apple stores, how the created ecosystem proves the internal growth of app sales and etc.

The lake needs to be cared for always, franchisees need to be accessed, and the growth of this side is given by the success of its participants (TAE – Teoria Alavancagem Estrelar).

How do we care for the lake?

First, we need to create a meta-product, then we create the ecosystem, capture, feeding/maintenance, and finally growth of the lake.

There are no correct paths and this realization does not depend on supernatural donations.

The tip is that it’s easier to create a lake than an ocean!

Manoel Pimentel Medeiros
Note:

I kept all the text exactly as written, as per your request.