Michael Jones
This time, we're looking at a very exciting business strategy: Blue Ocean Strategy.
Michael Jones
What is it?
Michael Jones
Well, this strategy argues that most companies are fighting in Red Oceans,...
Michael Jones
...where they're competing for market share.
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Now, the Red Ocean refers to the bloodshed during this fierce competition.
Michael Jones
Blue Ocean is where you create a whole new market,...
Michael Jones
...where in the beginning, there are no competitors.
Michael Jones
This is a whole new way of thinking about business strategy.
Michael Jones
While they're focusing on market share, where often you're competing on price or volume,...
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...here, you have no competition to worry about.
Michael Jones
Let's look at an example, Starbucks.
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Before Starbucks, coffee shops mainly competed on who could offer the cheaper coffee...
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...or the better quality coffee.
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However, Starbucks changed the coffee industry business...
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...by combining the comfortable atmosphere of a hotel lobby,...
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...big sofas, and relaxed style with still cheaper prices coffee, and best quality.
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By combining these factors, they've made a whole new kind of coffee shop experience.
Michael Jones
And at the beginning, they have no competitors.
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Apply this to your business.
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Think what you and your competitors are doing the same way.
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Don't just compete against them,...
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...think of a whole new way of approaching your business.
Michael Jones
A useful site to help you is blueoceanstrategy.com.
Michael Jones
This site gives you lots of tools and tips to help you create your own Blue Ocean.
Michael Jones
Thank you and good luck!
