Wednesday, April 15, 2015

Blue Ocean Strategy sounds like the name of A Cirque du Soleil show.

Blue Ocean Strategy sounds like the name of A Cirque du Soleil show.
To bring in unlimited’ potential with little or no borders seeded in a traditionally creative deviant space was an impressive feat for a circus. There was evidently fertile ground for a blue Ocean strategy. Artistic works, to paraphrase their mission ‘invoke the imagination, provoke the senses, evoke emotions globally’ with a goal of ‘pursuit of its dreams and business practices. … strive to position itself in the community as a responsible proponent of change.’  While extending the limits of the possible … ‘
Unless the creative disruption is even clearly repugnant (or not a trendy repugnant i.e. ugly dog competition) there is still potential for success if it is well managed and clearly defined in an undefined market. Sometimes the unattractive at first find great attractiveness for the publics dollars.  We often look at disruptive people as troublesome, unruly, disorderly, rowdy and unmanageable.  Some see opportunity in this adjective.
How many industries are here now that were not 20 years ago?  Many creative people have seen needs and blown in the creative to emerge with a business. Creating an open space to grow into. Red and Blue oceans. Red exists and has guidelines pre existing standards and practices and markets.   Dominating particular sectors established profits for a loyal and maybe less knowledgeable customers.   Even in the service sectors which have been showing quick growth in the last few years some old established companies are still making good money.  Than expanding to online opportunities for pre-bagged groceries or delivery of laundry,  pick up by FedEx for fixing your computer with quick delivery,  amazing.     

The blue ocean engines have a long growth opportunity model.   While red oceans are declining in developed markets. 

‘Disruptive … do not have a clearly defined market. And, because there is no defined market, sources of revenue for disruptive technologies are not identifiable.
The products have a well-defined market too….It appears, there is hardly any room for disruption but that’s only until you understand the characteristics of a disruptive innovation.’


This paradox of strategy is gets creative juices flowing especially in a free market environment.  Even where homogenized markets looking for price more differentiation becomes more challenging, maybe there are new disruptive price  models like dynamic pricing with Walt Disney and the lion King.  
Similar to original VW bug niche, what was it?
Saturn Cost structure set price low stress, lower price point, common man, easy to repair, inexpensive to maintain. Little rust mostly plastic with shopping cart ad’s. no dents…!  Still safe, affordability, diverse interior options, inside versatility, built in adjustable lumbar support on seat adjustable steering wheel, good gas mileage ie lighter car, sedan first to enter market. Culture was cultivated … picnics, Internet sites sharing of stories (grass root feel)    
How did they fail… cost and design got out of hand. They lost there niche thinking they were following the loyal Saturn owners upward mobility with bigger more expensive cars and SUV’s.  Then bailout by GM had to slim down Saturn was out.

Look for and plan for the disruptive opportunity while managing it well and continuing to see the picture.   Great opportunities aren’t there and well-managed Will show great profits.  There are plans in place for constructive companies even though it sounds like a paradox.   I look forward to the next disruption to make all of our lives better and richer.

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