Group 2
Michael Chu,
Huang Xiangwei,
Huang Ziyun,
Angel Suen
Discussion 1- Blue Ocean Strategy Case
Rouzao is a custom product ordering platform and flexible supply chain customization service provider, providing flexible supply chain one-click customization services, which can be applied to home furnishings, home textiles, clothing, treasure boxes, automotive supplies, color printing, advertising industries, etc. The brand's selling point is to cooperate with different IPs to launch peripherals and small batches of customized products to meet the needs of subculture groups. Their 300+ products are mainly targeting subculture groups’ habits, flavour and demand, with simple and easy ordering procedure, limited materials and size choice but clear marked price and procedure, no communication is needed for clients, which is high transparency on operation and user friendly to all ages users.
The Eliminate- Reduce- Raise- Create (ERRC) Grid
Eliminate | Raise |
- Account Manager 1:1 Service - Batch production - Retail Store | - Easy making online self-service experience - Product customization - Real-time effect provision |
Reduce | Create |
- Product range - Design and materials complexity - Product quality (Low) and manufacturing time (Slow) | - Animation lovers’ oriented customised service - 1 unit production and delivery for personal and corporate order - Ease of communication
|
The Strategy Canvas of Rouzao
Discussion 2- Porter’s Five Forces: Sample Analysis of Rouzao
Bargaining power of suppliers
l Potential suppliers: A lot. In earlier years, many Japan companies collaborated with Chinese factories to produce anime goods, which were similar with Rouzao’s personalize goods. All of them can be Rouzao’s supplier with no technical issue and there isn’t an unique product provides by any of them.
l Cost of switching: Medium. Though there isn’t technical problem, Rouzao has a highly automatic workflow. If they switch from current suppliers to new ones, it may cost time and money to adapt with each other.
l Supply price: Rouzao is one of the earliest brands to customize anime peripheral products in small batches. It has established a relatively stable cooperative relationship with suppliers, which helps to reduce bargaining power. At the same time, because there are no technical problems, it is feasible to switch suppliers, which can further increase Rouzao's bargaining power.
Bargaining power of customers
l Most buyers are ordinary people and most orders are under ¥500. Buyers can choose from a variety of platforms to produce personalize goods, however, Rouzao is one of their few choices to produce goods without complex communication, big MOQ and frustrating bargaining.
Threat of substitution
l Relatively low. Although many factories have enough technology and equipment, they are not able to offer Rouzao’s key value (flexible MOQ and transparent pricing).
l Although there are brands with similar positioning developing, their impact on Rouzao is relatively small for the time being because they started late.
Threat of new entry
l Medium. Some factories have started to copy its business mode. However, the change may not bring considerable ROI because of low average order amount.
Threat of New Entrants/Potential Competitors
l Competitors with the same positioning: Low pressure. There are not many competitors with the same positioning. As one of the earliest brands of small-batch customized anime peripheral products, Rouzao has accumulated a certain popularity and reputation compared to other customized stores that appeared later, and has a group of relatively stable users. Other brands with the same positioning, such as Doujin.studio, are still in the test operation stage and their services are not perfect.
Ordinary customized product manufacturers: Medium pressure. There are many such manufacturers, and the price can be lower than Rouzao, the customization speed is also faster, and many of them have high quality. But it doesn’t have Rouzao’s most prominent feature: a one-piece minimum order. And there is no convenient and quick preview and independent uploading of customized styles, and there are no supporting services, such as packaging, shipping, etc.
No comments:
Post a Comment