Ricky’s Online Business Blog

Recently I responded to an advertisement on newspaper about a seminar on blue ocean strategy. The ad claimed to show us the blue ocean strategy for Malaysian businesses. I overlooked the fact that the ad did not contain the organizer name.

I ended up attending an MLM-like business opportunity meeting (though technically it’s not MLM). I was ushered into the hall and was taken care by a special “consultant” assigned to me.

I expected to learn something about blue ocean strategy. But throughout the three-hour session, they kept talking about their products, company background and marketing plan. All they knew about blue ocean strategy was to keep saying that they are a blue ocean company!

I got fed up and left the meeting before it ended. Well, at least tell me what made them a blue ocean company. But I may be wrong. They may have taught us about blue ocean strategy at the end. Anyway, I don’t feel they are anything like a blue ocean company.

But to be fair to them, the way they recruit new members is quite attractive to business people, who are their target group and who are likely to be attracted to the famous blue ocean strategy, though some people could feel cheated after attending. Their business model is also quite unique, harnessing the benefits of MLM yet not an MLM company. Other than that, I feel their products are ordinary and competing with many other similar ones.

I don’t understand their blue ocean strategy – how they have raised or created new value for customers and lower their costs by eliminating unnecessary buyer values. I also feel they seem to sell their products more to members than to end-customers. Maybe they have identified members as their “target non-customers” to be converted into customers according to blue ocean strategy. But do you think this is healthy practice?

The consultant called me up later. Here’s a summary:

Consultant: Why did you leave early?
Me: I didn’t get what I want – to learn about blue ocean strategy as advertised.
Consultant: But we have shown you we are a blue ocean company!
Me: The seminar is all about your company, not about blue ocean strategy.
Consultant: Yes it’s about a business opportunity with a blue ocean company!
Me: Tell me what you know about blue ocean strategy.

The consultant changed topic and never called again…

It’s a cut throat competition in Malaysia, not to mention we are also competing with hosting service providers around the world, even Google!

Just a few years ago hosting providers were offering hosting space for less than 50MB. Now they must offer space in terms of gigabytes (and even more)! The competition seems to be based on who can offer more space, and so we have to offer more space to keep up with others. This translates into higher costs for all players.

Just a few years ago we could charge RM280 for 30MB. Now you can get gigabytes at the same price and even more! Hosting providers are constantly pampering the market with lower and lower price. This translates into lower margins for all players.

Hosting space and price alone are enough for us to suffer. With lower and lower margin, it may not be profitable to keep doing the same things. Perhaps this industry is also no longer attractive for new entrants. But luckily my company can survive thanks to the number of customers we having, for now.

Anyway I found one or two hosting companies doing quite well in seeking a way out of this, by offering hosting packages bundled with other products, charging unbelievably low price for the first year, packaging their services as tangible products, branding themselves as solution partner to certain market niches such as bloggers, and doing other innovative things.

I do have a few ideas to make the red ocean a little bluer. Just sit back and watch out, who knows I may surprise you?

I wish to praise Pizza Hut for coming up with an online order and delivery service, especially when McDonald’s and KFC are not doing so currently. I can just choose my favorite pizzas, make payment online and get them delivered to my place!

But recently I encountered problems when trying to place order online to get it delivered to a friend in another city. It was supposed to be a surprise delivery to him. But I was annoyed that Pizza Hut kept calling my friend a few times asking, “Ada order pizza?” (did you place order?), “Sudah dapat pizza?” (have you got your pizza?).

I lodged my complaint through their online feedback service (credits to them for collecting feedbacks online). Here are some suggestions I wish to put forward here, not only to Pizza Hut, but also any business planning online order and delivery service.

Allow me to order online and have it delivered to other address. I’m not able to do so now. As a result, I had to create a separate account for my friend. Better still if I can maintain different addresses online for my parents, family and friends, under one single account.

Don’t waste time calling to confirm order, especially when I had completed the payment process. Are you having any communication problem at your backend?

Have a more user-friendly online ordering system. Pizza Hut’s online order is Flash-based. While Flash is ok for me, a fallback to non-Flash site should be available, especially for those who can’t install additional software to use Flash or have limited bandwidth to access a Flash site. Furthermore, the Flash used does not add value to its user-friendliness. I really had to click around to find out how to place order and checkout.

Maintain records of past orders for relationship marketing. You can do as what Amazon does to track my preference and recommend suitable items to me to save my time. Also, you can put me into a mailing list to keep me updated on your latest offerings.

Anyway, I believe Pizza Hut would listen to customer feedback and perfect their service. Kudos to them for having such service. Keep it up!