The environment in which you find yourself is competitive and saturated, all products become commonplace by dint of benchmarking your neighbor and the price war is raging! It is impossible for you to overtake your big competitors and the opportunities for growth are dwindling more and more! This is what Kim Chan and Renée Mauborgne (author of the book The Blue Ocean Strategy) call the red ocean.
So what is the Blue Ocean principle?
The principle of W. Chan Kim and Renée Mauborgne's “Blue Ocean” strategy can be summed up in a few words: stop competing. The confrontation in arena mode is not the solution because one can never be victorious without leaving some “feathers” there. It is a deleterious expenditure of energy and more prejudicial and even sometimes fatal for the company: the Red Ocean, red as blood.
What is the strategic approach?
The calm and peaceful blue ocean is what you need, a market uninfected by competition where you create demand, rapid and significant growth with more competition non-existent since the rules of the game are still to be defined.
This approach is based on the following points:
1. Rebuilding the frontiers of the market
2. Prioritizing substantive questions rather than numbers
3. Aiming beyond existing demand
4. Successful strategic sequencing
Here are 4 avenues to follow to embark on this ocean of happiness:
Strategic groups: creating a map to innovate
A classic analysis which consists in grouping by similar strategy several companies from competing sectors in order to create a map that will allow you to mix the characteristics of several strategic groups. In this way you will be able to bring out a new, more innovative and efficient strategic model.
Complementary products and services: rely on cross-selling.
This track is based on the principle of cross-selling, the initial goal of which is to increase the customer's shopping cart by offering him other products. It is rarely used as a springboard to change the value brought to its market. The question you should ask yourself is: in the context of the use of my offer, what determining element of the complementary offer should I value? You should also be interested in the entire experience cycle i.e. before, during and after purchase.
Functional and emotional aspects: balance or modify them?
Currently each sector of activity tries to balance the functional and emotional aspects of their offer. But what would be wiser would be to look for a way to radically change the functional / emotional balance accepted as the industry standard.
Major trends to analyze
All businesses are short-term driven and follow societal, economic and cultural trends . Stop following but rather try to be an actor. Start by trying to find out what the market will look like if a particular trend is taken to its ultimate consequence.
In short….
"The only way to crush the competition is not to try to crush it" by creating new demand
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