A Business strategy outlines a roadmap for the business that directs the entire management of the company to achieve success. As a business owner, it is very important for you to think about where you would want your company to function? Will it be in Blue Ocean or Red Ocean? For a company to remain in the market and be at the top of the game, it’s very important to change from the Red ocean to the Blue ocean strategy.
A Business Strategy wherein the demand gets created thus resulting in high growth opportunities is basically a Blue ocean strategy. It involves creating a new market for customers through innovation and creativity in an entirely undefined market space and in a non-existing industry. Contrary to this, a Red ocean strategy is basically a market that includes a lot of competition. It’s more difficult to survive here as there’s always a pressure to beat the cutthroat competition.
For stepping into Blue Ocean Strategy, here are 5 tips that will help you succeed:
- The Key is to be Authentic: Authenticity can be applied to any area of your business. For example, if you are a product-based company, then coming up with an entirely different design that in today’s world may be considered as irrelevant but eventually once clients and customers like it, it will result in a profitable venture. On the other hand, if you are a service-based company then thinking about offering something that’s unique, such as using environment-friendly materials throughout the company can be a great start.
- Adding a different perspective to your business: What is it that’s causing concerns to your customers or is a problem that your customers face in day to day life? How can you eliminate that in your own way? These can be the beginning points for your new strategy. Adding an entirely new perspective will result in eliminating these problems and result in happy customers.
- Adding a new segment: It’s always great to try out new things or make changes to the ongoing activities. One such sector is your segment. You must have been in a particular area of business for ages, but there’s no such rule that you must continue in that same segment. In today’s DNA world, every other second something new comes up in the industry. To be on par with the new trend and new technology it is equally important to understand what’s working currently and how can you step into that particular new area. Adding a new segment can be a great beginning to step into a blue ocean.
- Eliminate nonvalue added activities: To keep your costs low, the first thing you should do is check for all the services/products that are currently adding minimum or no value to the company. This would eliminate unnecessary ongoing activities, thus resulting in saving money on non-value-added items. This is very important to stay relevant in business. This would help chase both cost and differentiation rather than choosing between the two.
- Different Target audience: Experimenting is very important. It helps you explore new opportunities. On similar lines, targeting an entirely different audience with a proper plan can be a great way of increasing the revenue of your business.