#BUSINESS: GO FOR THE BLUE OCEAN!
When it comes to making business, we are conditioned into thinking about a product, strategy and model that will collide with the rest of the industry.
A bit like an ocean where dozens of sharks gruesomely bite each other hoping for survival and prevail. The result is no other than an ocean turned red due to the hectoliters of blood that is being spilled. And regardless of whether you are part of the winners or not, chances are your blood is too part of the flood.
So, is there any other way of making business, when that is less bloody and more profitable?
Actually, there is, and it bears the name of ‘The Blue Ocean Strategy’. It relies on the empirical observation that traditional business is not reliable over time as it becomes less profitable because it becomes saturated with competition, and consumers are willing to pay less for more.
In response, they designed a model that manages to sail away from the Red Ocean by : - Creating uncontested market space ;
- Making the competition irrelevant ;
- Creating and capturing new demand ;
- Breaking the value-cost trade-off ;
- Improving both quality and pricing of products over time. #TIP
So if you are having hard times coming up with a valuable a business idea or making an idea reliable, try looking for consumers within or outside your targeted market that are not happy with the existing offer and start thinking of a new product that fulfills their needs. That’ll do for an amazing start!
Kim, W.C.; Mauborgne, R. (2005). Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Boston: Harvard Business School Press.