Business policy and strategy
It Is rather odd that a few companies have Invested In adopting a strategy that would allow them to get out of. A situation where many businesses are competing in the same market with very similar products, where profits are eaten up by the costs of competition. .TLS situation Is called a Red Ocean. In their book. Kim and Unbroken . Chart out in detail how businesses can achieve high growth and profits by creating new demand In an uncontested market space, or a “Blue Ocean”, rather than by competing head-to-head with other suppliers for known customers in an existing industry.
Most would think that applying Blue Ocean Strategy would mean creating a new product or finding a new market ? activities which could be as costly or even more costly than head-to-head competition. -But this Is not the case. John Baby, the senior strategy consultant and Blue Ocean Strategy expert of Impetus, describes how Crispy Creme applied this business strategy and came out on top without having to come out with a new product or engage in different market: While others try to compete with the closest competitors, it begs to ask: “Are we really
In the business to make the
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Key managers took to the field to gather Insights from other establishments that their industry would not consider as competition; here they realize that they are simply not competing for a larger share of a segment but rather toy 2 With this perspective they learned that there is a large and uncontested market out there that their industry simply ignores and now has become the subject of courting. Instead of bringing emphasis on internal processes, they turned their attention towards the actual Human Experience. Using tools such as the Buyer Experience
Cycle and the Buyer Utility Map managers were able to empathic with what is going on with the customer Before, During and After the use of their service offering. This developed a greater sense of empathy for their customers. Also by using the Buyer Utility Map, their managers were able to identify customer problems even before they happen. While many companies are familiar with Blue Ocean Strategy, there still remains a misconception that BOSS is about abandoning everything that we are doing now for something totally new and untested.
The case proves however that BOSS is a matter of hanging the perspective away from competition towards things that create true value back to the customers (both existing and future customers). By using tractable tools and frameworks, managers are awakened towards a bigger picture of opportunity and an in-depth understanding of customer needs. But how exactly did Crispy Creme make long standing and well known donuts brands in the Philippines irrelevant through its adoption of Blue Ocean Strategy? Well, that’s something you have to hear John talk about and you can reach him by clicking “here”