Red ocean trap six in our series is the myth that blue ocean strategic thinking is all about lower prices. This is not at all the case.
Remember the value/cost tradeoff? Often times company decision makers, consultants, and entrepreneurs feel that meeting or beating the competition on price is the way to compete or beat the competitor or survive.
In blue ocean strategic thinking terms, there are times to raise or create certain elements of a product or service so as to create buyer value. This may often be done simultaneously with saving costs.
Possible questions to ask yourself?
What factors does the industry my product or service serves compete on?
What are possible substitutes or alternatives to my service or product?
How might my offering be raised or lifted to serve audiences never before served.
This type of questioning is being done right now by a lot of companies. These are the companies that have the greatest chance of success. This would be the case in any business environment but it’s never been more true.
If your company is fortunate to have financial stability or a decent war chest, it is suggested that you answer the above questions independent of financial motive. That’s right, just ask and find ways to serve possible audiences. Don’t keep score. Don’t account for margins. Just serve.
In doing so, take notes. Ask questions. Share other’s story.
If you want to have a conversation around any of the red ocean traps, blue ocean strategies, or just need to vent about your business, shoot me a message. You may also schedule a chat. No strings attached. I love to talk business.
Sherman G. Mohr is a Nashville, TN based Insead Certified Blue Ocean Strategist. He’s also C0-Founder of a couple of tech companies. Some on the right side of today’s power curve. Others not so much.