Transcend competition 2

from book Blue Ocean Shift: Beyond Competing

Transcend competition with a blue ocean shift. When choosing a business strategy, it’s important to decide which direction you want it to take and most people assume your choice are limited to two. The value driven path along which your business expands through outstanding quality and service, and the low cost strategy, through which your business endeavors to offer the best price among all its competitors. Those two options are all well and good, but there’s a third strategy that can do much more. It’s called the blue ocean shift. The blue ocean shift is about taking your business beyond competition into markets that are entirely untouched. Just take the example of Groupe Seb. A well established french maker of small appliances, like those that make French Fries. One of the main assumptions in this industry, was that making French Fries involved deep frying and using a great deal of oil. Nobody ever thought to challenge this idea. Even though cooking and liters of oil is expensive, dangerous, messy, and of course unhealthy. But in 2006, Groupe Seb came out with the ActiFry. Introducing a whole new way of making French Fries that require no frying and employs just a tablespoon of oil. ActiFry brought in new customers, opened up a brand new market, and positioned Groupe Seb as a global leader. In other words, the essence of a blue ocean shift is moving from a market that’s pervaded by fierce competition, as so called red ocean into a blue ocean. A market that’s wide-open and full of opportunity. Such a move might seem like a magic truck, but there is a straight forward method behind it that abides by three key components. First, you need a new blue ocean perspective that expands the horizon of your thinking. Second, you need humanness along the way to motivate people into make the shift of perspective. And third, you have to have the market creating tools to transform that perspective into an attractive product. However, these concepts are all very abstract. In the following readims you’ll learn all the nitty-gritty details of how this process works and how you can put it into action.