Nix+Case


 * Nix Case**

**Reading**:
Tufano, P. & Ryan, A. (July 2009). Blue ocean or stormy waters? Buying Nix Check Cashing. Boston: HBP.

Kim and Mauborgne
Simone Lagomarsino,CEO of Kinecta Federal Credit Union (Kinecta). Robert Young, the board chairman (Kinecta). The board and executive team (Kinecta).

====**Immediate Issue/Problem Being Faced:** Kinecta Federal Credit Union would like to step into blue ocean strategy by decided to buy Nix Check Cashing. It is creating uncontested market spaces where competition is irrelevant. Due to Kineta is a credit union, which more working and training to comminity. ====

-Profit and growth margins are shrinking due to overcrowded markets
-Lagomarsino had no prior credit-union experience, and she have to endure even more skepticism, as well as carefully navigate credit union industry regulations to move forward.

-Many executive team members who left Kinecta were replaced by people from outside the credit union industry. It was not the norm.

- Although the top management knew the credit union industry well, //their vision of what Kinecta could become was lacking.//

- Many banks and credit unions offered the same products and services to a very similar target group.

- //Critics claimed that check-cashers charged “steep” rates for their services, many of which had been rising even as technology had made the transactions cheaper.// // The payday lending industry has been described as “legal loan sharking” and a “wolf in sheep’s clothing.” //

- //Roughly 50% of Nix applicants were denied checking accounts because Nix staffers were not permitted to provide detailed information about Union Bank’s services. And in 2006, Union Bank decided to discontinue their relationship with Nix and wanted to be bought out.//

====**Urgency/Importance**: High as if no new market spaces are created there will be very little room for new companies and they will have less and less of a chance to succeed. ====

====**Decision Criteria:** It is hard for a company to get out of their comfort zone that they have built within their "red ocean" but the possibility for growth and large profits that can be realized within a blue ocean cannot be ignored. ====

Companies have to look past the idea of innovation technology and look towards find the underlying technology and you can exploit it to create a blue ocean market space.

Also, Katecta and Nix is totally difference in their work, how the internal operation, legal and organization structure. In buying Nix would consider very risky, costly and controversial in every ways.

**Alternatives:**
====1, Stay within the red ocean and hope that your product and technology is strong enough to outperform other companies within your market and continue to realize profits and growth they have seen in the past without them being diminished by overcrowding markets. ====

2, Seize the huge opportunity in potential growth and profits that can be created by finding a blue ocean, analyze your underlying technologies and see if there are any that can be exploited to create a blue ocean. Kinecka can break free of the existing industry space through buying Nix.

Are they in the right industry or market to create a blue ocean
Has there been any recent blue oceans created that may be accessible

**Assessment of Alternatives:**
====1, Staying within your red ocean can be a safe alternative if you are at the top of the industry and continue to innovate within that ocean. ====

But “red seas” have already reaching saturation, and competitors and Kinecka are battling for the target customers with the same products and services.

2, Creating a blue ocean can be costly and risky but if it works the risk is more than worth the reward. Therefore,if changing the service direction, Kinecta may lose some existing customers. ====<span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">Selection of Preferred Alternative: asses all your current technology and if there is a underlying technology that can create a blue ocean it is worth the risk to pursue it. ====

<span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">There is an underlying technology there
<span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">They have the capital to pursue a blue ocean <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">There is enough buyer value that once you enter into the market space it will create buyer interest

====<span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">**Action/Implementation Plan:** Find the technology that can be exploited and will create a large enough buyer value and sink capital into the project the ROI should be realized soon enough and you will then be able to sit on this blue ocean you have created for a while. ====