Blue Ocean Strategy: Are you all the same??

Business owners know how tough it is “out there”; out in the ocean of competition, regulation, fickle consumers, long hours and reduced cash flow.

Several years ago I read a book that I encourage you to read, called “Blue Ocean Strategy,” written by W. Chan Kim and Renée Mauborgne of The Blue Ocean Strategy Institute. I confess that I start many business books but finish few and find that many of them are overly complicated and go off in too many directions. THIS book I read from cover to cover and could not put down. If you’d like a three minute intro and overview here is a great Youtube link: http://www.youtube.com/watch?v=HJH0g-EPGDs

But here’s what The Blue Ocean really means: it means you have no Competition-- unless you think you do. Do you understand that? It doesn’t mean you have no Competitors (meaning others doing the same or similar things), but since every person and business is unique it means that no one is exactly like you. So what separates YOU from everyone else?

Let’s explore two of the most competitive fields in Newport Beach: real estate and beauty. According to the business licenses filed with the city as of 2010 there were 1470 in the real estate field. As much as YOU may think that one realtor is the same as another, they would disagree. Some specialize in first time buyers; others in investment property, commercial real estate, short sales, REOs, working with certain ethnicities or languages and the multitude of individual tracks of homes in the areas. The Blue Ocean Strategy states that instead of swimming in the same Red Ocean as the other 1469 Realtors, each of them trying to devour each other, find the One Thing (or more) that makes you different and unique. That is your Blue Ocean and if you understand the process you can/will can OWN IT. And once YOU understand it, your mission is to make sure everyone else does, too.

The book, Blue Ocean Strategy gives many examples of how certain companies have truly been able to separate themselves from all or most of their competition, including Southwest Airplanes, Cirque du Soleil and others like them. There are many airlines to choose from, but most of us that have flown Southwest would agree that they are unique in what they do. Jet Blue is in that same category, but they are really not head to head competitors. And Cirque du Soleil? Are they a theater act? A circus? Yes- and yes.

The local beauty industry has 634 businesses licenses filed, which is the second highest of any INDIVIDUAL type of business in town. There are more business consultants and those that provide services, but they are not as easily defined. The beauty industry is (at face value) easy to compare apples to apples. Are all Stylists the same? How about Nail Salons? Cosmetic surgeons? The truth is that they are all different. Yet OUR perception is that they are the same. The goal of each individual is to show the world (and potential customers) that is not true and they are truly different.

The challenge is that if you ask All of these individuals, the Realtors, Hair Stylists, Insurance agents, Financial Planners, for that matters ANY profession that has lots of competition, “WHAT makes you different and better?” you will get the same pat, standard answer.

“Because I care.”

“Because I give 100% service.”

“Because I have passion for my job and for my clients.”

All those are probably true, but they are not enough.

One of the biggest goals that we have as business consultants is to teach every business about Competitive Positioning. If you would like to know more, please let us know and plan on attending our next “Helping 100 Businesses for 100 Days” event planned for January.