I guess being related to business, all have got an idea about what I am going to discuss about; it’s not the asking for your color preference or the famous RGB color combination for Photoshop or website developing. It’s about the different ocean strategies more in the gossip of today’s strategy makers. So my question may be booming in your minds too, is any market place really concentrated on a single strategy? Let’s explore together.
Ocean strategy simplified: It's a fine summer noon, you are out with your favorite person(s) for swimming in the ocean. It’s the blue I am speaking about of course. There you swim unhindered without any googling eyes. Suddenly you think of going deep down to try your luck with treasures and after few trials you find a great jewel box and a lot more there too. What a day, for anyone in this world would have loved to be there again and again. Still now no problem. But as you go to market to sell the valuable stones to make some money out of it, people and friends comes to know about your story, the most unwanted word-of-mouth I guess. And the very next day you see some more swimmers there to try their luck. As you go in you find out all are there to actually gather as many jewel boxes possible for themselves, and here creeps in the competition. People starts hurting you and each other to get the greater portion of the available jewels. The person who will be having most of the share of the jewels will be able to sell them in a far lesser price in the market and will be having more market share. And in this competition peoples hurts each other with finest of their skills. The blue ocean turns to red.
So, what we get out of the story is no market is always a single ocean strategy. It may start with a Blue Ocean strategy bit will soon digress to Red Ocean strategy. And when the whole world is well informed about every happening around everyone it’s just a matter of time to get noticed of a new market, copy the service strategy or reverse engineer the product and grasp a handful of the market share.
This was the story of ocean strategies till few decades back, but now with the advent of human development and over exposure to natural resources the whole world environment has changed itself in a complete different context. Now people prefer sustainability more than benchmarking the successful industries. Here creeps in the idea of Green Ocean strategy. Let’s get back to the story….
Now everybody knows about the JEWEL OCEAN which was never known before you made it known to everyone. And after you, many has come into the business of collecting the jewels and selling it in the market. You being the first mover actually have a profitable market share and all the following people have grasped the rest. Now everyone has their territory well-defined. All have their own ways of collecting and selling their jewel share in their market. Now what makes the difference is the green pasture before getting into the blue ocean. If you think of more commitment to the environment and to this world, you take care of this green pasture. Creating some value out of it will add value to your newly made business and will be a sustainable model with less risk too. Grazing animals and rearing sheep and whatever you can think of doing there. More focus on commitment of the business to the customer than to benchmark the best industry practices. This is what Green Ocean Strategy is in a simplified version.
Blue ocean business model which is based on over decade-long study of more than 150 strategic moves spanning more than 30 industries over 100 years. Some have become winners, some were lost in the way and some have drifted to the Red Ocean.
Here are a few examples of blue ocean strategic moves from a variety of different industries and sectors. (These examples are taken from https://www.blueoceanstrategy.com/bos-moves)
1. Bloomberg created a blue ocean in the financial information services industry.
2. Canon’s strategic move, which created the personal desktop copier industry, is a classic example of blue ocean strategy.
3. Cemex, one of the world’s largest cement producers, created a blue ocean of high profitability and growth in the cement industry that historically competed solely on price and functionality. It did so by shifting the orientation of its industry from functional to emotional.
4. Cirque du Soleil took the world by storm. It created a blue ocean of new market space. It appealed to a whole new group of customers: adults and corporate clients prepared to pay a price several times as great as traditional circuses for an unprecedented entertainment experience. Significantly, one of the first Cirque productions was titled “We Reinvent the Circus.”
5. With the launch of iTunes, Apple unlocked a blue ocean of new market space in digital music that it has now dominated for more than a decade.
#MARKHEMIST Dated:-13/10/2017