How to be a Game Changer
In Blue Ocean Strategy, Renée Mauborgne & W. Chan Kim explain why we should break away from the market share game. They then go on to explain how to systematically think Different, create new value innovations and sail to new waters.
Red Oceans are the contested market spaces in which we all fight. The customer is known, the competition has stagnated, and the game is to invest more to get less. The ultimate example of a Red Ocean is a commodities market, and even high-tech companies can become simple commodities.
Blue Oceans, on the other hand, are uncontested markets. These companies have figured out how to change the game from COMPETITION to CREATION. You can do this by:
Rethinking the Costs of your current offerings
Rethinking the Structure of your current business.
Rethinking the Value Propositions of your existing customer base
Eliminating the High-Cost-Low-Value aspects of your business to create offerings that maximize customer value - even if that means they lack features you are accustomed to offering.
Creating new Value Propositions by looking across time, markets, supply chains, and product usage events to discover synergies and new product offerings.
The Barksdale Insight
Modern management theory and practice is focused on improving today's margins. This is very difficult, and its challenges have matured many great leaders.
We should not conclude however, that the activities that forged us, are themselves noble activities worth continuing.
The difficulty of hunting mammoths and avoiding sabertooth tigers certainly challenged our prehistoric ancestors...
but it was the creation of new markets (cultivation and trade), not bigger clubs that ensured our species' survival.
Are you cultivating the offerings of tomorrow, or simply building better spears?
You have smart dedicated people. Why aren't you getting more ideas for breakthrough products?