Today’s post covers blue ocean strategy frameworks for solopreneurs part three. In our previous posts on blue ocean strategy frameworks, we covered the As-Is Strategy Canvas and the ERRC Grid or Eliminate, Reduce, Raise, Create Grid. There are some final details in section two of the book Blue Ocean Strategy that need to be covered before we move on to chapter three.
As a reminder, I am re-reading Blue Ocean Strategy, How to Create Uncontested Market Space and Make the Competition Irrelevant with an eye toward translating it into language appropriate for the solopreneur or small business owner.
There are three characteristics of a good strategy. The first characteristic of a good strategy is focus. When you read any strong case study, you’ll find a disciplined focused approach. While there may be multiple key factors of competition, the best strategy will focus on one specific area and perfect it.
Let’s learn more from blue ocean strategy frameworks for solopreneurs part three.
Characteristic number two is the divergence of the company’s or offering’s value curve. This means the strategy grew from looking across alternatives. Let me share an example. When a small garden center owner saw competitors in South Florida selling small exotic plants for high dollars, she looked across her world of connections and found alternatives to the offerings made locally.
She brought in plants from Hawaii at a very competitive price and with great retail markups now has an alternative offering that previously unknown customers now want. She didn’t consider her competition’s offerings as something to simply offer at a better price. She diverged and ended up with a different value curve.
The third characteristic is a compelling tag-line. Note that the tag-line may be for internal use. The tag-lines best use is in delivering a clear message, making a truthful offering, and reinforce trust and interest. One of my favorites is from Cheeky Cocktails. This small but growing concern seeks to capture the at-home bar market with its line of fresh cocktail mixers. Its tag-line? “Bar-quality syrups & juices for cocktails in the home”. It’s hard to imagine a more clear message conveying a truthful offer that leverages our inherent trust of bar quality cocktail preparation.
As chapter two ends, one learns the importance of reading value curves that come from the As-Is Strategy Canvas. This is where a wealth of knowledge about your current status and where you and the industry you are in are heading.
If your strategy canvas’ value curve indicates a presence of focus, divergence from the competition, and a compelling tag-line, then you are on the right track and are learning from blue ocean strategy frameworks for solopreneurs part three.
On the other hand, when your value curve lacks focus, your cost structure will likely be high and your business model will be more complex than necessary. When your strategy lacks divergence, your offering is me-too in nature and you won’t stand out. When you lack a compelling tag-line, it is symptomatic of being internally focused, or perhaps you are innovating for innovation’s sake.
When your company’s value curve mimics your competition, you’re in a bloody red ocean of competition. This isn’t a bad discovery! Consider it a call to action!
If your value curve is at the high range across all factors of competition, it suggests that you are overdelivering and may have a need to assess whether or not the investments are paying off. Not every solopreneur can last like Amazon when it comes to long term investments in the value proposition.
These first three posts cover the essentials of the importance of the strategy canvas, the ERRC Grid, and the four actions framework.
If you’re interested in learning more about blue ocean strategy implementations for your company or may have an interest in taking part in the first Blue Ocean Strategy for Solopreneurs please let us know. Click here for the contact form and drop us a line.