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Welcome back to
entrepreneurship strategy session

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This is the second session
of the entrepreneurial strategy

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In this session

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we are going to practice in strategy canvas

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What is the strategy canvas?

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Strategy canvas is a very useful tool

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and I want to introduce this tool

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and you'd better practice this tool a lot

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Before we go into the main topic
about the strategy canvas

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I would like you guys to watch
this case study through the video

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This video will explain about the businesses

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Let's watch together

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How about the businesses
in the previous video?

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This video illustrates
how the Yellow Tail spread out in America

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and how two companies
came up with some new idea

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and how they differentiate Yellow Tail
from the traditional wine market

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We will use this case as a practice

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in the strategy canvas later

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What is the strategy canvas?

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Strategy canvas is a central

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diagnostic tool from Blue Ocean Strategy

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Look at this book

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This book is Blue Ocean Strategy

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which is the best-selling book
written by a Korean professor in INSEAD

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And strategy canvas is a powerful tool

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that helps businesses differentiate themselves
from their competitors

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And strategy canvas offers a very clear

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and visualized representation of companies' landscape

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I will show you how it works

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 In order to make a strategy canvas

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We'd better draw the graph

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First one, you draw the y-axis

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The y-axis represents the value

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This value is something
that consumers perceive

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the consumers perceive the value

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If consumers perceive your product or service is really good

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then consumers' value is high

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And if consumers perceive your product
and service is not good

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then consumers' value is low

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The consumers' value ranges from high to low

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It's pretty simple, Isn't it?

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And intuitive

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And right now, you draw the x-axis

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In the x-axis, you just write down your attributes

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Attributes associated with your product

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Attribute 1, Attribute 2,
Attribute 3, 4, 5, 6, 7, 8, 9

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It depends on your assessment

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Then later, what happens?

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You assess your competitors

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in terms of chosen attributes

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I don't know what Attribute 1 is

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but you assess your competitors
based on this Attribute 1

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Let's say, according to your analysis

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your competitor's score for Attribute 1
would be just in the middle

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Just in the middle

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What about Attribute 2?

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Attribute 2 is kind of in the middle

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and Attribute 3 is kind of below the middle

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and Attribute 4 is very high

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For Attribute 4,

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consumers will perceive it
very high for your competitors

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Then you draw the line between the dots

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Then you put your competitors over there

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So now, it's your turn

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You assess attributes based on your product and service

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What about Attribute 1?

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When you assess your product based on Attribute 1

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then the score is a little bit higher than the middle

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What about Attribute 2?

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Attribute 2 is less than the average

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Attribute 3? Yes

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When I assess Attribute 3
based on my product and service

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it could be very high

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And what about Attribute 4?

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Attribute 4 is a little bit similar
or relatively low than your competitors

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Then again, you draw the blue line between the dots

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or some other color line, put your company

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You've done

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You've done in a straight canvas

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 What is the important thing?

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 You can easily understand

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what attributes differentiate yourself
from your competitors

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What is it?

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Yes, Attribute 3

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Attribute 3, there is a huge and significant difference

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between you and your competitors

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 From this strategy canvas
we intuitively understand

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what differentiates myself from my competitors

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Let's practice strategy canvas with yellow tail case in the video

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Again, there is the same graph

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Y-axis represents the consumer value

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X-axis, there are many attributes

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What kind of attribute related to the wine?

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Let's say the price, quality

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or accessibility and easy to use

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And probably there are many more attributes

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But we will focus on these four attributes

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Price, quality, accessibility and easy to use

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Then later, you will examine

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the score about your competitors

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Your competitors based on the chosen attribute

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In this case, your competitors is the traditional wine

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What about the price for the traditional wine?

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Price is kind of expensive

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If consumers see the expensive priced wine

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then they perceive kind of low value

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So the price is set kind of low and middle

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And what about quality?

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Traditional wine provide high quality wine

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So that's why the quality level is kind of high

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What about accessibility?

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You can purchase wine at anywhere

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You can purchase wine Costco

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You can purchase wine specialized, Rico store

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So the accessibility is
middle and above the middle

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Easy to use

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You feel easy to use
when you drink traditional wine

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To me, it's always difficult

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I don't know the terminology

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I don't know the taste

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The wine is still difficult for me

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So the consumer feel, low value

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or zero value because it's very difficult

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So you can draw the line between the dots

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This is a traditional wine

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Right now, it's time to analyze your Yellow Tail case

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What about Yellow Tail's price?

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Yellow Tail's price is relatively
cheaper than traditional wine

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If we provide a cheaper product

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then probably consumer feel higher value

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so the consumer perceive the higher value
than traditional wine

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It is kind of middle and above

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What about quality?

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Quality, the Yellow Tail wine provides a decent quality

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It's very similar to the traditional wine
but slightly less in my opinion

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So I think it's the middle at best and accessibility

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Yellow Tail wine

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distributed this product throughout the Costco

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if you are able to purchase wine
throughout the Costco

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the accessibility, there is no problem

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So the accessibility is
high or close to the high

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And what about easy to use attribute?

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When you drink Yellow Tail, it can be very easy

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There is a picture of kangaroo, there is no jargon

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There is no difficulties

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So it looks like you drink beer, it's the same

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The easy to use for this attribute

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Yellow Tail score very high

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Then you draw the line between the dots

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Then you put, it is a Yellow Tail

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Then you can find out the two sides

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very significant differences

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between Yellow Tail and traditional wine

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And the bigger difference is
found in the easy to use area

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What differentiates
Yellow Tail from the traditional wine?

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It's easy to use

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From this strategy canvas

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we are able to understand
the different factors right away

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This is the power of strategy canvas

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And I recommend you guys to practice a lot

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in your business, in your idea

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Let's take another example
to create another strategy canvas

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This example is Cirque du Soleil

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Have you heard about Cirque du Soleil?

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Cirque du Soleil is one of
the successful circus companies

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Then in order to understand the circus company

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and we understand the circus industry in 1980s

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What happened in circus industry at that time?

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 Circus industry was in trouble

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Why?
Because there are a lot other, entertainment available

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For example, TV, movie, and sports

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And these other form of entertainment company

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took consumers away from the circus company

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Traditionally circus company

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has offered the animal shows as well

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This is a typical kind of picture of the circus company

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There is a crown, there is a tent

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and there is the elephant, 
lion, tiger, something like that

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So many circus companies
follow just the traditional, structure

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But only one guy had a different idea

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His name was Guy, one guy, Guy

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Guy is a street performer in Canada

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And he thought that,
why should we keep animals?

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Why?

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People are not interested in seeing elephants

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People are not interested in seeing tigers and lions

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They can see the tigers and lions,
elephants in zoo, not in circus

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 in circus, we can provide better quality of the show

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we can provide some kind of creative show

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And we can provide some kind of extraordinary, experiences

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If we are able to provide,

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extraordinary experience is really great show

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then people are willing to pay, expensive prices

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This is his idea

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 Let's eliminate the elephant

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Just tent, just crown, just acrobat

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We can offer not only fun and thrills,

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but also artistic richness

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In other words, so we can make this circus art

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like a theater, like a movie

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like a drama, something like that

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No elephant at all

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we will get rid of the elephant

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If we eliminate the elephant,
then we can save the money

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because in order to keep the elephant

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you should pay a lot of money
in order to feed them

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transport them, care for them

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And medical fee, housing fee,
insurance fee, and transportation fee

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 if we decide to eliminate the elephant

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and other animals, then we can save the money

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With this saved money, then we upgrade our venue

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Like this, this venue is glamorous

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And we can make a higher level of comfort

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we can provide this higher level of
comfort to our consumers

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 a glamorized tent

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The Cirque du Soleil can provide
higher level of art

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Look at this picture

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This clown and the circus performer

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wear some specialized costume

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Why they wear different costume?

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Because it's very similar to the movie

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It's very similar to the drama

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It's very similar to the theater

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The Cirque du Soleil tried to break down

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the boundaries of theater and circus

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Basically, this company applied

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the theme and genre into the circus

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Think about the movie
and we have a different genre

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it's a comedy movie or
a horror movie or a thriller movie

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Based on genre of the movie
and we expect the different

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same thing happened to the circus

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The Cirque du Soleil
emphasized on extreme creativity

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So, what happened?

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I want to show you the difference between

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Cirque du Soleil and the traditional circus company

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Let's look at the picture

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On left side

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this is the Cirque du Soleil's best-selling performance
which is the Death of Will

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There is a person in a round bottle

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it looks like someone is chasing

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and someone is being chased

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And others in the bottom are watching this scene

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 it feels like kind of a scene of a movie

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But on the other hand look at the right picture

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The same performance done in

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the Dongchun Circus Company in Korea

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The performance is basically the same

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but I don't feel any art here

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I don't feel it's a movie

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It is not a movie, it is not art

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It is kind of sports

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it is kind of Olympic game

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 I don't know why they are doing

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They just it looks like a competition

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You see the differences?

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On the left side same performance
in the Cirque du Soleil

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It looks like art because they wear
the specialized costume

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and there could be the music
and the consumers feel thrilled a lot

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compared to the right performance

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which is exactly the same that of real performance

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But you see the differences

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I will give you another example

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Look at the picture on the left side

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This is a juggling act

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and you can see the three red clothes, some performers

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and red clothes performers are rolling kind of yellow beans

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and the green clothes guys

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approaching behind this red clothes guy

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I think it's like a fire ant in the middle

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00:17:25.800 --> 00:17:28.000
fire ant is the red clothes guy

271
00:17:29.200 --> 00:17:35.000
probably the green clothes guys are grasshopper

272
00:17:35.000 --> 00:17:40.300
Grasshopper who try to steal from something behind

273
00:17:40.300 --> 00:17:43.500
 I think, what about the yellow bean?

274
00:17:43.500 --> 00:17:49.000
 Yellow bean looks like corns

275
00:17:50.350 --> 00:17:54.828
 The red ant playing play with corn

276
00:17:54.828 --> 00:17:59.878
and grasshopper try to steal the corn from the red ant

277
00:18:00.000 --> 00:18:03.550
 This performance is called as insect

278
00:18:03.600 --> 00:18:05.750
 We feel the theme

279
00:18:05.750 --> 00:18:09.000
We feel some kind of image

280
00:18:09.100 --> 00:18:12.050
On the other hand,

281
00:18:12.050 --> 00:18:15.000
you can see the exactly same performance
done in Jeju Island

282
00:18:16.000 --> 00:18:18.000
The content is exactly the same

283
00:18:18.000 --> 00:18:19.550
Performance is exactly the same

284
00:18:19.550 --> 00:18:22.000
But there's no theme

285
00:18:22.000 --> 00:18:24.000
Over there, there's no theme

286
00:18:24.000 --> 00:18:28.350
and we don't know why they do the juggling act

287
00:18:28.400 --> 00:18:31.650
And why they wear this uniform

288
00:18:32.550 --> 00:18:37.950
It looks like they are practicing in kind of a kung fu

289
00:18:37.950 --> 00:18:41.700
 It looks like a kung fu masters, they practice their kung fu

290
00:18:41.700 --> 00:18:43.700
 We don't know why they did that

291
00:18:43.800 --> 00:18:48.000
 you see the differences between
these two exactly same performance

292
00:18:48.000 --> 00:18:55.000
That's why the kind of the art
differentiate Cirque du Soleil

293
00:18:55.000 --> 00:18:58.000
from the other traditional circus company

294
00:18:59.050 --> 00:19:01.000
 What about the result?

295
00:19:01.000 --> 00:19:04.050
 Cirque du Soleil achieved rapid growth

296
00:19:04.050 --> 00:19:09.000
in even declining industry which is a circus company

297
00:19:10.000 --> 00:19:14.000
The value of this company exceeded two billion dollars

298
00:19:15.000 --> 00:19:19.400
and the other traditional circus company went to bankruptcy

299
00:19:19.400 --> 00:19:22.050
For example, Ring Ring Brothers which is

300
00:19:22.050 --> 00:19:26.000
the previously successful traditional
circus company shut it down

301
00:19:28.900 --> 00:19:34.000
Although, during COVID-19,
Cirque du Soleil was in trouble

302
00:19:34.000 --> 00:19:38.200
but the company overcame the difficulties these days

303
00:19:40.000 --> 00:19:43.000
Now, you understand the difference between

304
00:19:43.000 --> 00:19:46.000
Cirque du Soleil and the traditional circus company

305
00:19:50.000 --> 00:19:55.000
Let's practice with Cirque du Soleil case in strategy canvas

306
00:19:55.000 --> 00:20:00.050
Again, the y-axis are value perceived by consumers

307
00:20:00.150 --> 00:20:04.000
and x-axis are attributes related to your service

308
00:20:04.350 --> 00:20:08.000
In this case, what kind of attribute could be relevant?

309
00:20:08.000 --> 00:20:13.650
What about price, animal show, venue, and art or theme?

310
00:20:14.000 --> 00:20:18.100
Let's say those four attributes are very important

311
00:20:18.100 --> 00:20:22.000
 to represent your circus and your company

312
00:20:22.000 --> 00:20:28.000
We'd better evaluate the score

313
00:20:28.185 --> 00:20:33.186
evaluate the traditional circus company's score on price

314
00:20:33.186 --> 00:20:36.000
animal show, venue, and art and theme

315
00:20:36.000 --> 00:20:37.000
What about price?

316
00:20:37.950 --> 00:20:41.000
The prices are traditional circus company

317
00:20:41.000 --> 00:20:43.000
provide very cheap ticket prices

318
00:20:43.000 --> 00:20:46.650
The consumers feel kind of high value,

319
00:20:46.650 --> 00:20:48.000
the middle or above high

320
00:20:48.000 --> 00:20:49.650
Middle or high

321
00:20:50.000 --> 00:20:51.150
What about animal show?

322
00:20:51.150 --> 00:20:53.500
Traditional circus company provide

323
00:20:53.500 --> 00:20:56.350
elephant show or tiger or lion show

324
00:20:56.350 --> 00:20:59.200
 the consumers feel valuable

325
00:20:59.200 --> 00:21:02.550
 in this case, it's middle and high

326
00:21:02.550 --> 00:21:03.550
What about venue?

327
00:21:03.550 --> 00:21:07.750
Traditional circus company didn't care for the comfort venue

328
00:21:07.750 --> 00:21:09.300
They, why?

329
00:21:09.300 --> 00:21:12.650
Because they need money to care for the animal

330
00:21:12.650 --> 00:21:16.650
that's why they don't have any money to upgrade their tent

331
00:21:16.650 --> 00:21:20.550
 the venue is a little bit low value

332
00:21:20.550 --> 00:21:22.600
And what about art and theme?

333
00:21:22.600 --> 00:21:25.550
Traditional circus company,

334
00:21:25.550 --> 00:21:28.500
there is no theme, there is no art,
there is nothing

335
00:21:29.000 --> 00:21:32.000
They just show the acrobatic

336
00:21:32.000 --> 00:21:34.100
 there is no art and theme

337
00:21:34.100 --> 00:21:37.650
We draw the line between the dot

338
00:21:37.650 --> 00:21:40.000
and put the traditional circus company

339
00:21:42.200 --> 00:21:48.300
We are going to assess
the Cirque du Soleil based on the attribute

340
00:21:48.400 --> 00:21:49.550
What about price?

341
00:21:50.000 --> 00:21:55.450
The ticket price of the Cirque du Soleil is higher

342
00:21:55.491 --> 00:21:59.291
and expensive than traditional circus company

343
00:21:59.641 --> 00:22:03.750
The consumers perceive the low value in the prices

344
00:22:03.850 --> 00:22:06.250
 the value of the price is low

345
00:22:06.350 --> 00:22:07.350
What about animal show?

346
00:22:07.350 --> 00:22:11.000
Circuitous soleil didn't provide any animal show

347
00:22:11.000 --> 00:22:13.200
 there is no value

348
00:22:13.200 --> 00:22:15.000
Venue

349
00:22:15.000 --> 00:22:18.050
Circuitous soleil has great tent

350
00:22:18.050 --> 00:22:20.646
the consumer feel comfortable

351
00:22:20.646 --> 00:22:25.096
from this great venue, great tent

352
00:22:25.096 --> 00:22:29.450
The consumer value in the venue area which is high

353
00:22:29.450 --> 00:22:31.600
What about art and theme?

354
00:22:31.600 --> 00:22:34.000
 There is very different types of theme

355
00:22:34.000 --> 00:22:38.150
As I already mentioned that there is a theme of insect

356
00:22:38.150 --> 00:22:41.550
If you go to Vegas, there is a theme of water

357
00:22:41.572 --> 00:22:45.022
theme of fire and theme of something

358
00:22:45.022 --> 00:22:47.000
 there are a lot of different themes

359
00:22:47.000 --> 00:22:49.000
It looks like a different movie

360
00:22:49.500 --> 00:22:51.350
If we watch the Cirque du Soleil,

361
00:22:51.350 --> 00:22:56.250
consumers perceive the high value on art and theme

362
00:22:56.250 --> 00:22:58.300
 It is very high

363
00:22:58.300 --> 00:23:03.000
We draw the line between the dots
and put the Cirque du Soleil name

364
00:23:03.000 --> 00:23:07.149
Immediately, we can see

365
00:23:07.435 --> 00:23:13.085
what area differentiates the Cirque du Soleil
from the traditional circus company

366
00:23:13.100 --> 00:23:16.300
And I can find out three areas

367
00:23:16.300 --> 00:23:22.500
Animal show, venue and probably art and theme

368
00:23:23.000 --> 00:23:28.000
the biggest area that differentiates too much
would be the art and theme

369
00:23:29.000 --> 00:23:32.250
This is the power of strategy canvas

370
00:23:32.250 --> 00:23:37.000
Again, I suggest you guys to practice
in strategy canvas many times

371
00:23:38.000 --> 00:23:42.350
I want to give you another and the last example

372
00:23:42.350 --> 00:23:44.550
This is the Walmart case

373
00:23:44.600 --> 00:23:50.000
Walmart is discount retailing businesses

374
00:23:50.500 --> 00:23:52.650
But interesting thing is

375
00:23:52.650 --> 00:23:57.000
this concept of discount retailing business was not new

376
00:23:57.000 --> 00:24:01.600
and Walmart didn't start this concept for the first time

377
00:24:02.050 --> 00:24:08.000
 The discount store concept was already popular during 1950s

378
00:24:08.000 --> 00:24:09.000
Look at the picture

379
00:24:09.000 --> 00:24:13.650
These are all popular discount retailing stores during 1950s

380
00:24:14.000 --> 00:24:20.000
 During 1960s, there are 10 largest discounters

381
00:24:20.500 --> 00:24:25.850
And those 10 largest discount retailing stores focused on

382
00:24:25.851 --> 00:24:28.401
the large metropolitan area

383
00:24:28.401 --> 00:24:32.250
like New York City, Chicago, LA, something like that

384
00:24:32.250 --> 00:24:36.550
They focused on the big city
because there are many people living in big city

385
00:24:37.800 --> 00:24:41.000
They tried to sell private label goods

386
00:24:41.000 --> 00:24:43.000
What is private label goods?

387
00:24:43.000 --> 00:24:47.450
Private label goods is store-specific brand product

388
00:24:47.450 --> 00:24:49.550
For example, if you go to Kmart

389
00:24:49.550 --> 00:24:53.000
and there is a Kmart-specific branded product

390
00:24:53.000 --> 00:24:55.050
If we go to Costco

391
00:24:55.050 --> 00:25:01.000
there is a Costco-specific private label goods such as Kirkland

392
00:25:01.000 --> 00:25:04.000
Kirkland is Costco's private label product

393
00:25:05.400 --> 00:25:10.000
The discount retailing stores focused on private label goods

394
00:25:10.000 --> 00:25:13.000
they focused on second-tier product

395
00:25:13.000 --> 00:25:17.000
For example they don't sell Levi's jeans

396
00:25:17.000 --> 00:25:20.700
Instead, they sell some kind of no-name jeans

397
00:25:21.000 --> 00:25:24.300
Why they focused on second-tier brand product?

398
00:25:24.300 --> 00:25:26.000
Because they want to save the cost

399
00:25:26.000 --> 00:25:28.000
They want to cut the prices

400
00:25:28.000 --> 00:25:31.000
 this is the only way to cut the prices

401
00:25:34.150 --> 00:25:39.400
The discounters provide
price promotion to the consumers

402
00:25:39.400 --> 00:25:41.350
What about price promotion?

403
00:25:41.350 --> 00:25:44.650
Promotion means,

404
00:25:44.650 --> 00:25:48.000
a certain kind of discount within a certain period of time

405
00:25:48.000 --> 00:25:53.550
For example, in this month we offer 30% discount

406
00:25:53.550 --> 00:25:56.650
Something like that it is time-specific

407
00:25:56.650 --> 00:26:00.200
Time-specific price promotion

408
00:26:01.000 --> 00:26:06.750
Now, the situation about the discount retailing industry

409
00:26:08.000 --> 00:26:13.000
And most of the discount retailing companies
follow this kind of rule

410
00:26:13.600 --> 00:26:17.300
but only one guy had a different idea

411
00:26:17.300 --> 00:26:19.964
His name was the Sam Walton

412
00:26:19.964 --> 00:26:23.734
Sam Walton is a retailing group

413
00:26:23.785 --> 00:26:27.886
He was a veteran from the World War two

414
00:26:27.886 --> 00:26:29.936
After World War two

415
00:26:29.936 --> 00:26:36.024
he saw the kind of suburban life in America

416
00:26:36.024 --> 00:26:38.003
After World War two American

417
00:26:38.003 --> 00:26:40.613
American suburban life was exploding

418
00:26:40.614 --> 00:26:45.064
so the Sam Walton saw this phenomena

419
00:26:45.163 --> 00:26:49.963
and he tried to catch up the opportunity
from the suburban life

420
00:26:51.663 --> 00:26:57.734
He thought that why we are located in the big city

421
00:26:58.234 --> 00:27:01.966
Right now, there are suburban area exploding

422
00:27:01.966 --> 00:27:03.966
and then we can go there

423
00:27:04.766 --> 00:27:06.923
so let's go to rural area

424
00:27:07.640 --> 00:27:14.041
Why we limited the time period of the price promotion?

425
00:27:14.041 --> 00:27:17.823
Why not provide the cheap price product every day?

426
00:27:18.423 --> 00:27:21.873
Every day cheap prices

427
00:27:21.873 --> 00:27:25.304
which is every day low price on everything

428
00:27:25.854 --> 00:27:29.124
This is his slogan and this could be a differentiator

429
00:27:29.224 --> 00:27:35.013
from the other traditional discount retail in stores

430
00:27:36.313 --> 00:27:38.669
He is Sam Walton and

431
00:27:38.669 --> 00:27:43.883
he had remarkable business skills on retailing

432
00:27:43.883 --> 00:27:47.120
He worked very hard then after World War two

433
00:27:47.120 --> 00:27:51.770
he make one of the franchisee of the Ben Franklin shop

434
00:27:51.770 --> 00:27:55.554
Ben Franklin shop is it's kind of $1 shop

435
00:27:55.554 --> 00:27:59.883
it's a very popular at the time
then later again he worked very hard

436
00:27:59.883 --> 00:28:03.844
He opened up another Ben Franklin shop

437
00:28:03.844 --> 00:28:07.644
at the end he managed 16 Ben Franklin shops

438
00:28:08.072 --> 00:28:15.164
He became the largest Ben Franklin shops franchisee 16 stores

439
00:28:17.364 --> 00:28:20.614
He had an idea about the discount retailing store

440
00:28:20.614 --> 00:28:23.853
with these two concept

441
00:28:23.853 --> 00:28:26.253
Let's go to the rural area

442
00:28:26.253 --> 00:28:29.933
and we can provide everyday cheap prices on everything

443
00:28:29.933 --> 00:28:35.203
He suggests his idea to the owner of a Ben Franklin shop

444
00:28:35.203 --> 00:28:40.003
but the owner of the Ben Franklin shop didn't accept this offer

445
00:28:40.003 --> 00:28:45.424
That's why the Sam Walton started his business by himself alone

446
00:28:47.474 --> 00:28:52.644
He opened up the first Walmart store in a rural area

447
00:28:52.794 --> 00:28:55.494
He went to the rural area

448
00:28:55.494 --> 00:28:59.123
and actually opened up the first Walmart store in Arkansas

449
00:28:59.123 --> 00:29:02.294
He made the flyers by himself

450
00:29:02.394 --> 00:29:05.954
You can see the pictures on the right side

451
00:29:06.042 --> 00:29:10.943
There are many local residents who are waiting for

452
00:29:11.004 --> 00:29:13.183
the grand opening of the Walmart store

453
00:29:15.628 --> 00:29:20.478
Again, Sam Walton focused on the small town

454
00:29:22.378 --> 00:29:26.114
the benefit of the focusing on small town is that

455
00:29:26.214 --> 00:29:31.054
the small town only supports one discounting retail stores

456
00:29:31.504 --> 00:29:32.833
What does it mean by that?

457
00:29:32.908 --> 00:29:37.859
If you go fast and if you go first in this area

458
00:29:38.283 --> 00:29:40.830
you can occupy the market very fast

459
00:29:40.830 --> 00:29:45.380
There's no incentive for the competitor to join this market

460
00:29:45.380 --> 00:29:48.694
you can enjoy your monopoly power in this area

461
00:29:49.194 --> 00:29:52.964
Second good thing is you don't have to pay marketing fee

462
00:29:53.514 --> 00:29:55.964
Although, you don't pay anything about the marketing

463
00:29:57.164 --> 00:29:59.484
the local resident already knew about you

464
00:29:59.484 --> 00:30:03.603
Why?
Because the event event spread out very quickly

465
00:30:05.253 --> 00:30:08.083
It's a very small town

466
00:30:08.933 --> 00:30:14.583
Sam Walton started his first Walmart store in Arkansas in 1962

467
00:30:15.933 --> 00:30:21.214
Then over there, Sam Walton tried to cut the cost with the merchant

468
00:30:21.214 --> 00:30:24.291
how he purchased bulk merchandise

469
00:30:24.291 --> 00:30:28.042
and delivered it directly from farm

470
00:30:28.354 --> 00:30:31.934
or from factory directly to his Walmart store

471
00:30:32.427 --> 00:30:36.327
In 1980s

472
00:30:36.327 --> 00:30:40.504
Walmart began working directly with manufacturers

473
00:30:40.654 --> 00:30:46.254
The Walmart went to the factory directly such as the P&G

474
00:30:46.654 --> 00:30:49.173
They went to the P&G factory

475
00:30:49.351 --> 00:30:53.351
and got the product from the P&G factory

476
00:30:53.351 --> 00:30:57.243
delivered the product from the factory to the store directly

477
00:30:58.143 --> 00:31:04.084
We did these efforts with these activities
Walmart can provide everyday low price

478
00:31:04.084 --> 00:31:06.913
on really great branded product

479
00:31:08.764 --> 00:31:11.214
What happened? Yes, of course

480
00:31:11.214 --> 00:31:13.973
 Walmart achieved the incredible success

481
00:31:14.943 --> 00:31:18.494
By 1976

482
00:31:18.644 --> 00:31:21.944
Walmart went to IPO and Walmart became

483
00:31:21.944 --> 00:31:23.763
the publicly traded company

484
00:31:23.763 --> 00:31:25.214
with huge success

485
00:31:27.039 --> 00:31:32.474
Let's practice in strategy campus with Walmart store

486
00:31:32.540 --> 00:31:36.840
It's the same, there is a y-axis value and access attribute

487
00:31:36.840 --> 00:31:40.973
In this case what kind of attribute
can be related to the Walmart store

488
00:31:42.073 --> 00:31:48.244
Price local access and quality and variety

489
00:31:48.244 --> 00:31:50.123
I think it's a great attribute

490
00:31:50.123 --> 00:31:51.891
there could be something more

491
00:31:51.891 --> 00:31:54.974
but we are gonna focus on those four attribute

492
00:31:54.992 --> 00:32:01.342
And then right now you can access
the score based on the attribute for your competitors

493
00:32:01.342 --> 00:32:06.014
What about price for
the traditional discount retail stores?

494
00:32:06.014 --> 00:32:08.093
They provide the cheap prices

495
00:32:08.093 --> 00:32:13.023
The consumers perceive this value

496
00:32:13.543 --> 00:32:15.293
What about local access?

497
00:32:15.293 --> 00:32:20.884
Again, the 10 largest discount stores located in big cities

498
00:32:21.684 --> 00:32:26.184
there's no way to access the big city discount stores

499
00:32:26.184 --> 00:32:31.293
other than just driving one hour or two hours from the rural area

500
00:32:31.295 --> 00:32:34.745
The local access is a pretty low value

501
00:32:34.745 --> 00:32:36.123
What about quality?

502
00:32:36.162 --> 00:32:40.212
The largest and traditional discount stores

503
00:32:40.212 --> 00:32:43.084
to provide some second tier brand good

504
00:32:43.096 --> 00:32:45.296
and the private label good

505
00:32:45.296 --> 00:32:49.784
So the quality, kind of a middle or less than the middle

506
00:32:49.784 --> 00:32:51.753
What about the variety?

507
00:32:52.046 --> 00:32:55.797
The varieties it's just kind of a middle or less

508
00:32:56.197 --> 00:33:01.354
and then we draw the line between the dot

509
00:33:01.354 --> 00:33:04.773
and put the previous discount stores

510
00:33:05.923 --> 00:33:11.083
We can access the score of the Walmart based on the attribute

511
00:33:11.084 --> 00:33:12.334
What about the price?

512
00:33:12.384 --> 00:33:17.244
Prices are kind of similar to the discount store or higher

513
00:33:17.244 --> 00:33:21.399
and the local access is really great

514
00:33:21.399 --> 00:33:25.504
Because Walmart located in in rural area

515
00:33:25.710 --> 00:33:28.010
so local access is great

516
00:33:28.010 --> 00:33:28.810
Quality?

517
00:33:28.810 --> 00:33:32.010
Walmart to pursue the high quality brand

518
00:33:32.010 --> 00:33:34.014
from the factory directly

519
00:33:34.564 --> 00:33:40.244
High quality, variety, in Walmart store you can find anything

520
00:33:40.245 --> 00:33:41.844
Variety

521
00:33:41.844 --> 00:33:46.323
You can draw the blue line between the dot

522
00:33:46.323 --> 00:33:48.504
and put the name Walmart

523
00:33:48.541 --> 00:33:52.754
 We can see the differences between Walmart and

524
00:33:52.754 --> 00:33:55.794
traditional and previous discount stores

525
00:33:56.102 --> 00:33:59.802
Local access there's a huge gap between them

526
00:33:59.802 --> 00:34:04.023
quality, a huge gap and variety, huge gap

527
00:34:04.024 --> 00:34:08.543
so, the three big area differentiate

528
00:34:08.603 --> 00:34:13.203
Walmart from the previous discount stores

529
00:34:13.203 --> 00:34:15.914
That's why Walmart is very successful

530
00:34:16.354 --> 00:34:21.554
So, this is the power of strategy canvassing

531
00:34:22.054 --> 00:34:24.254
You'd better practice many times