PetWellClinic: Shifting from a Red to a Blue Ocean

Name: PetWellClinic: Shifting from a Red to a Blue Ocean (English version)
SKU: IN-1898

Kim, W. Chan; Mauborgne, Renee; Olenick, Michael

Product #:IN-1898

Supplier:INSEAD

Discipline:Strategy

Setting:North America

Details:Case (PDF) • 16 pages • 2023-02-23

Subjects:

Strategy Behavioral economics Entrepreneurship Leadership Start-ups Turnarounds

Geography:

North America

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$9.71

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From nearly bankrupt to a franchised chain of 150+ clinics and growing, PetWellClinic: Shifting from a Red to a Blue Ocean shows the use of blue ocean strategy to redraw industry boundaries and create a remarkably successful business. Dr. Sam Meisler, DVM, MBA, found himself struggling in a red ocean of the veterinary care industry. Stressed out and nearly bankrupt, Dr. Meisler applied blue ocean strategy concepts and tools to create a new market space in veterinary care. This is an ex-ante case where blue ocean strategy was used from the beginning to build a large new blue ocean business while transitioning away from his struggling traditional clinics. The first PetWellClinic was launched in 2010 and there are now over 150 franchises sold. Embedded in the case are seven short videos featuring key people which may be used in the classroom. This case enables a rich discussion related to entrepreneurism, blue ocean strategy, leadership, behavioral economics, turnarounds, and professional practices.

Learning Objectives

- It is possible to redefine market boundaries in even the most mature and highly regulated markets. - It's possible to execute a strategy transformation while minimizing risk for an existing business and maximizing success for a new opportunity. People, especially those within a market, often fail to see the need for change or the positive outcome change can bring about even when the status quo is dismal. - The status quo red ocean has an exceptionally strong pull. It can block the sun absent a diligent effort to change. - Commitment and consistency are vital to successful leadership which is a core requirement to executing a blue ocean shift. - Character is communicated by example and matters a great deal. - A key element for successful execution requires aligning the value proposition for customers, profit proposition for investors, and people proposition for employees at all levels. - The psychological impulse to ideate additive solutions by default and reject more effective subtractive solutions even when a subtractive solution costs less and creates more value.