Start up in the Blue Ocean June 2023 Vol. 19 No. 1 | Page 4

4 PACIFIC BUSINESS PARTNERS JUNE 2023
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provide an image of your market position . Let us have a closer look at the five competition factors :
First and foremost , we can beat the competition and stand out from them by having a superior product design ( or service design ), in the form of higher quality , better functionality , superior technology , a better shape or something else . Your company can also show its superiority by creating a better buying experience for the customer throughout the entire purchasing process . This can be done at several points during the buying process ; from the decision to buy , through delivery , use of the product and on to the follow-up service or maintenance , disposal , or re-purchase . You can do so by giving a personal service and just making it simple , easy , and comfortable to deal with company .
As a third factor , some companies gain ground by being better at creating good and long-lasting customer relationships . This is done by having a continuous dialogue with the customers , by listening to their requests or by some other means gaining their trust to such an extent that they might not even consider changing to other products , even if they are both better and cheaper .
The same applies to the fourth way of being better than the competition , namely , to create a brand that is so attractive that it will keep the customers for life , because it has the right aesthetics or represents values that the customer can identify with .
Finally , the fifth and last way to stand out from the competition is to offer a better price . Many businesses are focused on keeping costs down and being more efficient than others in the market . By continually striving to keep costs down , you can stand out and make more money by being the cheapest in the market .
In the checklist on the next page , there are more examples of how you can be more competitive within these five areas . It is not necessarily about being better in all the areas but about choosing where to concentrate your efforts and resources into being better . That is why some of the five competition factors should be given greater priority while others should be given less or completely ignored if they are not relevant .
Setting yourself apart from the competition
All the ideas on how to beat the competition presented above appear to be good , but there is a certain danger to this whole way of thinking . It takes a lot of resources to be the best at all times , and the attempt to be the cheapest one might end up with you being the one who makes the least money .
There is , however , an alternative to constantly trying to be better and cheaper than the competitors : Being different and moving to a spot without competition : The blue ocean . To be in the blue ocean means that you are trying to make your competitors irrelevant by designing your products and your company in a way that positions you outside the common notions of how a company acts in the industry . In relation to the Position Map , you might say that you are adding new factors to compete for . The trick is to identify these new competitive factors .
There are several ways to identify them . One way is to consider whether you can create a whole new market by going beyond the traditional limits of your industry , and maybe become part of several industries at the same time , like the restaurant that becomes a school for chefs , or the bank that becomes a store or the computer manufacturer that is also a music business .
Another way to create a blue ocean is to look for customer groups that others have overlooked . Maybe the situation in the industry is that all the big and well-established players are focusing on the same part of the market and are not interested in a smaller niche . If you are able to find an uncultivated niche , you will also be alone in the ocean , or rather the little pond , where you will be a big fish . In the Position Map , this corresponds to adding a new area ( blue stick ) to compete in .
A third and final way of creating a blue ocean is to find new and unprecedented ways of compiling products , perhaps by creating total solutions that meet all the client ’ s needs in a specific situation . You can meet a wider range of needs by finding other products that the clients are going to purchase before , after or at the same time as they purchase from you . Examples include airline companies that offer insurance , fitness centers that offer dietary advice , or book shops that offer coffee shop facilities when buying a book . If it is possible for your company to meet more needs with just one , total solution , you might sometimes be able to set yourself apart from your competitors .
Emotional barriers
Although the blue ocean might seem attractive , there are also some emotional barriers that keep entrepreneurs from moving into it : The fear that the water is too deep , so to speak . The feeling of being in deep waters is not so much about questioning whether your idea is good enough , as entrepreneurs seldom lack this confidence . It is more likely to be the fear that competitors will steal your idea , follow in your footsteps and turn the blue ocean red .
The fear of competitor intrusion is not always unfounded . If you as an entrepreneur cultivate a new market , the big fish might follow you and take over the market . On the other hand , it might be a great advantage for pioneering entrepreneurs that other players enter the new market . A competitor may help the market mature and prepare the customers more quickly to buy . It might take some time if you have to “ educate ” the clients to buy a new concept all by yourself , and you will appear much more trustworthy if you are not the only one in the world selling the new product or service .
Competitors might also be good for you as they can show up the differences and bring out your strengths . Even though two companies are competitors , they might have entirely different profiles - and market positions - and may not even be interested in each other ’ s customers . In such a situation , it is an advantage to have a competitor as your customers get a clear image of what the alternative is and become more aware of why they have chosen your product .
Instead of fearing the competitors , you should choose the mindset that competitors are an advantage for your company . That also goes for the type of competitors you might call rivals . These are the ones that you are competing against directly on price when you are making offers . They might even be the ones that you can learn the most from .
Get better at everything
Part of the joy of starting your own company is to put your own mark on it . That is why we keep trying to be both better and different from the competitors . But as an entrepreneur with a new company , the problem is not always being sufficiently different from the competitors , but rather that you are not enough like them .
The biggest challenge in the early phases of your company ’ s life cycle is to be just as professional and competent as the competitors in your line of business , who may have many more years experience . Therefore , you may want to start by trying to imitate the best in your industry . The best companies are not always the ones that are different but simply the ones that do everything really well . To do so is always the best way to get a good market position and to stand out from your competition .
Suggestions for the next step
• Make a list of your competition or competitive products
• Do some research on the competitor ’ s products and compare them to your own
• Decide in which areas you want to be like the competitors and in which you want to stand out .
The Blue Ocean
The notions “ the red ” and “ the blue ocean ” come from the book “ Blue Ocean Strategy ” ( by W . Chan Kim and Renée Mauborgne ) that was published a few years ago . It is widely considered a new classic within the area of business strategy . The key message of the book is that companies , instead of strengthening their position in the existing market , should create new markets where the competitors are irrelevant and non-existent . The idea of differentiating oneself from the competition is not new , but in “ Blue Ocean Strategy ” it gets a new language as well as new tools . One of these tools is the “ Strategy Canvas ” that has inspired the Position Map in this article .
© Growth Wheel International Inc . and David Madié