Actual example of Blue Ocean Strategy
Today I spotted a current example of Blue Ocean Strategy: Cotti Coffee. This gives me the perfect conclusion to my series of posts on Red and Blue Ocean Strategies and the FAF.
Cotti Coffee, despite its Italian-sounding name, is a coffee chain from China that has rapidly expanded to approximately 7,000 outlets in 28 countries in just over 2 years.
Cotti Coffee, despite its Italian-sounding name, is a coffee chain from China that has rapidly expanded to approximately 7,000 outlets in 28 countries in just over 2 years.
Cotti Coffee eliminated traditional manual espresso machines in favor of automatic ones, aligning with the “Reduce” aspect of the Blue Ocean Strategy. This strategy, which may seem unacceptable to traditionalists, allowed them to cut down an over-delivered factor in some markets.
This strategic move allowed them to achieve:
- Cost Reduction: Automatic machines are cheaper to operate and maintain.
- Operational Efficiency: Less skill required from baristas.
- Scalability: Simplified staff training process.
- Consumer Focus: Prioritized convenience, speed, and price, appealing to consumers less concerned with traditional methods.
This strategic move has enabled Cotti Coffee to scale up quickly, meeting the increasing global coffee demand, and showing how the “Reduce” principle drives business success.
- Previous post of the series: The Four Actions Framework: A Blue Ocean Strategy
- Article also available on LinkedIn
