Everyone knows that if you want to be successful in business, you need to beat the competition, right? Is your business idea as innovative as blue ocean strategy for the optimum outcome? What is a business opportunity where blue ocean can be implement? We need to know what is innovation in business.
Well, according to professors W Chan Kim and Renee Mauborgne, authors of famous book Blue Ocean Strategy, striving to penetrate the competition in an dominant market is a bad business strategy? Many researches are made on it, blue ocean strategy Harvard business review makes its way, blue ocean strategy tools are in action, and what not! The rise of e-commerce will be a good option to think deeper.
If you try to answer and establish the fast food market with the hope of beat competition, you’re adopting the red ocean strategy in today’s world. So, there are thousands of similar markets doing business and competing over others. It is the red ocean strategy where most of the businesses are competing over one another.
With the rise of technology, and the widespread access to information, it’s too easy for businesses to enter an established market and saturated that market. However, is it the right strategy to make a boom? We need a blue ocean shift, by doing research on blue ocean strategy examples.
The only way to succeed beating for market share, which turns the market waters, blue in red, hence the term red ocean. If it’s you focused on sailing past red ocean in search for blue waters, untapped market potential, you increase your chances of survival and profit through new businesses across different industries. Things to be invented in the future in small business ideas, theories of innovation and promising online business ideas for beginners.
Upon further study, the authors discovered that the blue ocean businesses went on to dominate the respective markets for 10 to 15 years after their initial launch.
In a research made by the authors, out of 108 companies, ninety two businesses adopted a red ocean strategy and aimed at outperforming the competition. The remaining sixteen businesses adopted a blue ocean strategy and avoid competition and search for a new category that they could dominate when looking at the collective profits.
Interestingly, among all 108 companies across several years of study, all 92 red ocean businesses only accounted for 39% of the total profits. That means 61% of the profits were generated by 16 blue ocean businesses.
Secret of success
So, how can we use a blue ocean strategy to find uncontested, ocean of opportunity and dominate market over a decade to find the answer? Let’s look at how company used the blue ocean in the book authored by Kim and Renee. It invented a new category of a drink. It would become the best selling drink in Australian and US market when to create a successful new one product.
They knew that competing with existing in the traditional would be extremely difficult. They would need to establish their brand over the span of several years and hope to win several recognition along the way to gain favor of existing drinkers.
Where is the opportunity
So they decided to take a different approach instead of focusing only on wanting drinkers. They focused on consumers in adjacent markets of other beverages who infrequently, drink, or avoided altogether.
The company approached these non customers and asked them a few questions. Like, why did they avoid drinking? And what was it that specifically discourage them from drinking? These non customers shared many of the same reasons for avoiding one.
What they came up with was a different kind of drink that non drinkers also loved. They were innovative. Also, they kept it to make cost effective for the new type of consumers. Their profit was rising with the new kind of customers and increased amount of sales.
They created the category of fun. Easy drinking had a huge head start on the competition making it extremely hard for competitors to steal their market share. This is the power of blue ocean strategy!
And there are several businesses who have used the strategy to dominate. Yeah, another blue ocean. Business example, is five hour energy the Mini energy drink. So, we see this on the counters of almost every convenience store silence.
Energy created the new energy drink market of two bottles. It maintained a 93% market, share of that market category despite competition from major competitors, like Coke and red bull. Because they created a category and went to a huge lead on future competitors, they continue to dominate that category today. This example is applied to all sect of businesses, by generating innovative ideas for IT company, and beyond.
Where lies the blue ocean ideas
If you’re interested in finding blue waters for your next business idea and dominating a market for years to come, start differently. Therefore, the hint is to focusing on the frustrations of customers outside of your current market space. These are the innovation ideas for the whole process.
Moreover, you should look at existing products or services within the market and decide something innovative. Invention is the backbone of every business idea, regardless to the list of all business ideas. Whether it is million dollar ideas list, most successful small business ideas, or, any new business idea.
A five step process
As per the source, the five steps are:
1. To choose the appropriate platform to initiate and develop the perfect Blue Ocean team for the idea.
2. To get a clear picture about the existing situation of the operation.
3. To unleash the hidden pain facts that limit the existing size of the industry and discover an ocean of non-clients.
4. To reconstruct market lengths and develop alternative Blue Ocean opportunities in a systematic and confidential way.
5. To select the exact Blue Ocean move, conduct fastest market analysis, finalize, and launch the shift as soon as possible.
To create something new and attract infrequent or apps that customers, you can gradually develop a product that defies the status quo. Moreover, it will also create a new product category that you will dominate. So, stop focusing on how you can beat the competition and start focusing on how you can make the competition irrelevant.
You can generate blue ocean business ideas from home to create vibrant business opportunities by concepts of innovation and creative small business ideas! Just, you need innovation and strategy management on your small business list. Most successful small businesses starts from home, why not its from your one?