It’s a common problem across the board – trying to make your business stand out above all the rest. In a sea of never-ending industries, the competition is getting thicker every single day. So what can you do to make yourself more desirable?
Implementing the blue strategy in your company is one way to do it. In a “red” ocean, there is so much competition. The water is “red” from all the fighting going on between companies.
However, in a blue ocean, there’s a lot less competition. And as a business owner or manager, you want to be in the blue ocean. This is where you will thrive. Companies in the blue ocean will be much more profitable, since there is significantly fewer competitors here. However, it doesn’t strive to outdo the competition. Rather, blue ocean strategy’s goal is to make the competition irrelevant. And the way it does this is by completely revamping the boundaries in your industry.
Luckily, there are a few ways you can get into the right ocean. Value propositions are one of the best ways to make this happen. Ask yourself: What makes your company different from all the rest? Is it a certain service or product? Is it your purchases purposes? Is it something unique you offer?
Rework the boundaries
No matter how long you’ve been in business, you’ll benefit from this move: reconstructing market boundaries. Re-evaluating the properties that create your industry’s rules and processes, and reshaping your company’s business model will give you a fresh, new perspective.
The best way to do this is to sit down and think. Ask yourself where the process begins and ends for your customers. Not only can this lead to enlarged value change, but you may venture into new markets. Consider Ryanair for an example. Not only does it offer flying services, but it offers car rentals and accommodations. Ryanair has managed to take their industry and expanding it into an even larger market.
Keep your eye on the prize
It’s way too easy to get lost in the statistics – but keep your eyes on the prize. So many business leaders and decision makers get tangling in the data that they miss where they’re going – and in turn, they miss where their competition is headed as well.
Consider what your customers really need from your company, and how you’re able to provide them with the end result. At the beginning of each week, ask yourself: What do we have in our business processes that customers aren’t getting any benefit from?
Go past the current demand
It’s natural for a business to focus on its current customers, as this can help greater market segmentation analysis. But if you’re looking to kick it up a notch and get some real growth, you’ve got to expand beyond your current demand. It’s time to seek out some open water! Focus on where your future potential customers are. After all, a company like Apple wasn’t satisfied by just creating the infamous iPhone. Rather, they continued to make products to expand their reach of customers – the iPad for the on-the-go computer lovers, the iWatch for the fitness gurus. They didn’t just extend their reach into a new market – they created their own market.
Is your strategic sequence right?
In order to beat your competition, you have to provide the power of 3: entertainment, safety and convenience. Your product or service needs to make your customer’s life easier and more successful. Take a look at your product or service and figure out its safety, ease, practicality, entertainment and any other factor that’ll effect your customer bringing it home, using it, adding to it and keeping it working.
The whole idea behind blue ocean strategy is to offer new business where it hasn’t existed before. Ask yourself these questions to consider the process from your customer’s shoes:
- Are you well-rehearsed on your organization’s market boundaries?
- Do you know your customer’s market boundaries?
- Are you able to see the big picture over just numbers?
- Does your company’s strategy include top-of-the-line customer experiences?
Follow these guidelines, and regularly review your internal processes, and you’ll find you’re in a crystal blue ocean with hardly any competitors in sight.
In this Insivia Insight, Andy explains how you can differentiate your business from your competitors through positioning and by creating unique value propositions.