Jan 21 2009
Compete Today vs. Compete Tomorrow
Yes I admit I’m a blue ocean strategy fan. My PC desktop is an ocean viewing. I even tend to look at everything through the lense of blue ocean vs. red ocean.
The problem is, we just can’t ignore competing in the red ocean, whether now or in future. Perhaps our industry is still red. Perhaps a blue ocean will also turn red after some time. Competitive strategies still have an important place in business and marketing.
I heard that a telecommunication company in Malaysia has two teams of people planning their business strategy, one called “Compete Today”, another called “Compete Tomorrow”.
As the names suggest, the “Compete Today” team plan strategies to outsmart their competitors in today’s market. Whereas the “Compete Tomorrow” team brainstorm and explore new markets and plan strategies for the future.
So I’m learning not to just look up to anything “blue ocean” as good and look down on anything “red ocean” as bad. A more holistic perspective is required.
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let’s said you come out with a good new strategy (blue ocean), and if people copy yours, thus the competition turns red, you still have to compete in red.
if people copy yours, improve it, got his blue ocean, then your blue ocean is no more great blue ocean, you have to rethink again…
Thanks Siak Hooi for input. You are much welcome
As I understand it, having a blue ocean is more than just having another product feature, a new look, new packaging or another service, all of which can be easily copied in short time.
It is more than just differentiation, but it is offering a new value proposition to current customers and non-customers, yet at a lower cost! How can this be? Need to “eliminate” and “reduce” some values and “raising” and “creating” other values.
Well, it is said that blue ocean can be turned red also, but it takes relatively longer time to copy. Even if a firm successfully copies the strategy, it is just a follower to the market leader. The initial benefits will have been enjoyed by the first mover.
Look at the case of Exabytes who does not have own data centre and 24-hour phone support – http://www.rickysoo.com/2008/11/19/exabytes-from-good-to-great/
Can other hosting providers who are having own data centre and 24-hour phone support just drop these and follow what Exabytes are doing? Can MAS go no-frill like AirAsia overnight? Not so easy, especially when it involves sacrifice.