BLUE OCEAN STRATEGY AND A NEW BUSINESS MODEL IN THE RESTAURANT INDUSTRY: THE EXAMPLE OF CO COOKING SPACE PITCHAY YINDEEPIT 5849187. In order to understand the characteristics of Cooking Space, the author must first summarize the idea of a coworking space that would be useful for the development of the idea. of the Co Cooking space. The Co Cooking Space idea tries to follow a blue ocean strategy by creating a new market space and capturing customers who are looking for a new service value.
Current market situation
Since the idea of Co Cooking Space is a new idea that has just appeared in global business and no information was found about the idea in Thailand, there is no literature on this issue in the database. Therefore, with the intense market conditions in the hospitality industry, the best way to start this topic is to understand the market environment, such as market size, market share or competitors, which would help companies predict the business scenario for their future plan.
What is coworking space?
In conclusion, the concept of coworking space from previous studies is a place that does not consist of a house or office, where the tenants offer services (so-called shared desks and facilities such as Wi-Fi or computer/laptop) on an hourly, daily, weekly or monthly basis. monthly rate. The tenants can share the same or a different interest and profession, sometimes exchanging their own experience and vision with the others. Therefore, the idea of the Co Cooking Space, which is adopted from the idea of coworking space, can be explained by the author as a shared kitchen where non-professional chefs or freelance chefs with a passion for cooking in a package or can rent for a period. have time to demonstrate or develop their menus, which cannot be done by their own kitchen due to limited space, equipment or other issues.
However, a pre-development idea may not work well as a professional kitchen because most professionals have their own kitchen and may not use a shared kitchen where they are unfamiliar. To survive in the business world, the first idea must be developed through a strategy that could create a competitive advantage over competitors. Thus, the next section will present a blue ocean strategy that can be used with a preliminary Cooking Space idea and developed to a final idea that could work in the current market conditions.
Blue Ocean Strategy
We can see this loop over and over in the market, which companies try to outperform their existing company by creating new value to create a long-term profit. The blue ocean is characterized by factors such as uncontested market space, demand creation as well as the possibility of long-term highly profitable growth (Kim & Mauborgne, 2004). On the other hand, the red ocean is a metaphor adopted to represent all existing industries, commonly referred to as the known market space (Kim & . Mauborgne, 2005).
It represents a scenario where companies strive to outperform their rivals to capture a superior share of existing demand (Kim & Mauborgne, 2005). As competition increases in the known market space, forecasts for profits and growth tend to gradually decrease. Thus, what divides and separates the winners from the losers in the Blue Oceans process is their attitude towards strategy (Leavy, 2005).
In fact, as previously mentioned, creators of blue oceans do not benchmark opponents, but rather adopt a different strategic logic usually called “Value Innovation” (Kim & Mauborgne, 2005).
Value Innovation
Blue Ocean Strategy: Main Tools and Frameworks
The Strategy Canvas
First, it differentiates the immediate state of the situation in the common market space so that companies understand the value in which the industry competes and where their competitors invest (Kim & Mauborgne, 2005). The value curve is the fundamental component of the strategy canvas and is a pictorial depiction of a company's coherent performance across all factors of its industry's competitiveness (Kim & Mauborgne, 2005).
The Four Actions Framework
The purpose of the “elimination” factors is to reduce the costs used for competition that have less impact. The purpose of the 'reduce' factor is to limit the product and services to those that are 'successful'. Companies don't have to focus on products that don't work and cost money just to have a bigger range.
The purpose of the "increase" factor is to understand what the customer's standards are and go above and beyond to make them more than just met. The purpose of the "create" factor is to find what will create a new demand/market.
The ERRC Grid
Moreover, there are several cases that point to a company using the blue ocean strategy to create a new market in which they can make profits in the sector. Bologna, (2014) explores how the Eataly case creates a blue ocean by following the framework and logic to be profitable in the Italian food industry. Kim and Mauborgne (2005) present numerous blue ocean case studies, such as the Yellow Tail case in the US.
Kim, Yang and Kim, (2007) demonstrate the case of CJ-Global Logistics Service in a South Korean third-party logistics system industry that uses blue ocean strategy to become successful. Chang, (2010) uses the blue ocean strategy, proposed by Kim and Mauborgne, to confirm the applicability of the blue ocean strategy of a Bandit cell phone box that can increase their sales volume in the Chinese cell phone industry. According to previous studies, the blue ocean strategy can be useful to surpass their competitors by creating a new territory as we can see in many cases.
By using frameworks and logic to examine success and unsuccessful cases, we can formulate a new business plan for the Co Cooking Space that follows the blue ocean strategy and prevent the idea from being imitated by competitors by increasing value that would be available in the market can survive. The next chapter presents the steps to find the answer to the question of what value would be the answer to create a new business idea – the Co Cooking Space – that integrates with the blue ocean strategy.
METHODOLOGY
Research questions
First, to be included in our review, an article must address the concept of themes in a non-trivial and non-marginal way. Second, an article should also refer to the topics as a concept related to business firms.
Data Collection
Data Analysis
Drawing on these works of literature can help put future research on the topic on a more solid conceptual footing. Once you have this information, you can now recreate your value curve on the strategy canvas.
RESEARCH FINDING
Also, food start-ups can benefit from Co's cooking space as a respondent working at a food start-up in the US. Capacity and equipment are the main factor in using the cooking space rather than their kitchen, when compared to the cost of building a larger kitchen with the price of using the service of the cooking space together. In terms of the topic of this study, the figure below provides a snapshot of Co.'s Cooking Space Strategy Canvas.
On the y-axis, instead, the relative performance of Co-cooking space is mapped along with each competitive variable. The ERRC Grid below serves as a summary of the Co cooking space Blue Ocean Strategy which is shown graphically in the Strategy Canvas. From ERRC Grid shows that from the research results the factors that the Co Cooking Space should eliminate or not invest are service and reputation (of a chef) due to the characteristic of the service that does not offer waiter or waitress in the so-called restaurant not. , users must cook or serve themselves.
Compared to mid-level restaurants, the Co Cooking Space would increase their price, privacy and ingredient quality by offering a slightly higher price with higher ingredient quality in a private space for partying. The new value that the Co Cooking Space would provide where the market does not have it can help the company enter the blue ocean where there is no competition and they can name the price because they are the only one in the new area.
CONCLUSIONS
- Implications
- Limitation
- Recommendation
- introduction
- factors
The purpose of this study was to discover the final value in the strategy canvas that would differ from the previous one in relation to the response of the respondents and help to adapt the service from the first idea to meet the expectations of the target customers. These may represent the growing trend of DIY or do-it-yourself that has happened currently in Thailand where people want to experience DIY and they can show their skill to the whole group through their eyes or social media. This study would benefit the young entrepreneur who wants to develop the idea of co-cooking space that has not been in Thailand where we have many restaurants.
Furthermore, with limited time and resources, this case study has a very small sample size when considering the market size and intensity of the market, which would require more evidence to decide whether or not to do the venture. There may be more variation in the answer to the same question in a larger sample size. Moreover, the qualitative research can provide the internal answer of the sample group, but to see the statistical result of which factors have a greater impact on people's decision to go to the co-cooking area, the result would be stronger by using a questionnaire and a quantitative analysis.
For further study, for confirmation in this study on a wider area, it would be better to repeat the qualitative interview with a larger group of respondents. Also conduct a quantitative interview by creating a questionnaire related to the mentioned factors that can capture a larger sample with a specific character that would suit the target customers.
