Without much thinking I replied, “Don’t be a magazine.” Before that, I had been habitually telling people to operate a successful bookstore, don’t be a bookstore; to be a successful nasi lemak store, don’t sell nasi lemak. That is, be bold to come out of your product category, create your own market space and be perceived as offering something different or more than what you sell.

As a matter of fact, I know of one magazine which is not really in magazine business.  The company behind is actually in branding business. They charge clients fees to certify their brand, give them brand awards, and promote them in a number of ways, magazine being one main channel. No wonder I can’t find advertisements in the magazine.

I guess the lecturer asked me about magazine because he knew I used to write a column for a magazine called MBA Edge Quarterly. Again, if I had resources and owned a magazine like this, I would do it in different way, rather than a traditional one going around soliciting for advertisers and presents only good things about MBA. Create an MBA 2.0 magazine!

Question – Why am I different from others?
Answer – Do you have to be like others?

Don’t seek to be like others! Everyone of us is unique and has our own destiny to realize in life!

From marketing point of view, the commercial is also great. Pantene shampoo is a functional product and has its conventional market of shampoo users. But now it seeks to cross over from functionality to emotional appeal. Instead of using logic to tell us why it is a better brand, it seeks to attack our emotion and win our heart over.

Not only will it persuade more people from the its traditional market to use the product, those who don’t use their kind of shampoo maybe bought over too. Who knows I might decide to buy Pantene for my family next time? Perhaps this is one of the blue ocean strategies to conquer a new market.

And the tagline is inspirational – You can shine!

By the way, I consider the Thai language very beautiful phonetically. It is a language I wish to learn if I had extra time.

While I’m facing the same problems competing in such fragmented hosting industry, these are a few pointers we managed to come up with.

Firstly, don’t try to fight them with even larger space at even lower price.  How about going to the other extreme, by selling small but enough hosting space at half or quarter of their prices?  For example, selling only 100MB at just RM80?  But the customers need to be educated that they actually won’t make use of so much space.

Secondly, expose the tricks (even deception) used by hosting providers.  Nowadays anyone can sell any large amount of hosting space at cheap rates using the “overselling” kind of business model.  This works because statistically an average customer will not use even 10% of the space promised to them.  Some customers are “space-greedy”.  They need to know the inconvenient truth in the hosting industry.

Thirdly, bundle hosting service with other services with prices you have more control on, such as web design.  This way, customers may not know even if you charge them double the hosting prices.

Fourthly, but a very bad strategy – fight the competitors with even larger space at cheaper price!  We know some customers will be lured into this but actually never use so much space anyway.  Nevertheless, I’m against this as it is over-promising.

Last but not least, seek out blue ocean strategies that you no longer need to compete with other hosting providers in such a red ocean.  But seek out new markets and sell to them some services which include hosting service.

Just as an example, how about an online service for couples getting married?  Many couples get married every week.  More and more couples start to want a wedding web site to commemorate such big event!  In providing such service, you no longer compete with other hosting providers but customers will have unknowingly bought your hosting service anway.

Trying to keep to my principle not to do what others were already doing, I proposed a new strategy to the owner.  However, I didn’t proceed in the venture as we couldn’t agree on the right business model.  At the end of discussion, the owner still preferred a business model 90% identical with the existing one!

Nowadays, many youngsters look for friendship and relationship on social network web sites, But besides casual relationships, there are others who look for serious life partner.  So there are many offline dating and matching services around.  Naturally, some of them get online and here come these online dating and matching web sites.

The problem is that, do people trust the Internet to look for their future husband or wife?  Most do not.  They don’t think Internet as a safe place.  Instead, they consider it full of cheaters.  The trust for the channel is just not there.  We may disagree, but this is the market perception, at least for my (older) generation.

Internet presence might work for an offline matching service using the Internet to promote their service, automate some business processes and value-add to their offline offerings.  But how about a purely online matching service?  Will it work?

If you were to operate such an online matching service, how do you make it big on the Internet?  Difficult, if not impossible.  This calls even more badly for a blue ocean strategy.  Let’s not be so bounded and bondaged by the same old thought just as other competitors in the industry.

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.

Looking at the development of Internet in the past one and half decade, we can see the role of Internet users changing, from mere consumers of information in the 90′s, to producers and publishers of information on the Internet nowadays!

Just think about it.  In the good old days, we surfed the World Wide Web to read up what the site owner wrote. Then with the development of web authoring tools, the more technical people among us learned to design and publish web pages on the Internet.  Around the turn of the millennium, any IT student (including me) could do up a web page!

With the flourishing of social networking web sites in past few years, even non-technical people got to express themselves on the Internet.  Nowadays, more than 9 out of 10 college students own a piece of virtual property on Facebook or Friendster!

When blogs were popularized in more recent years, we change from owning a member page on Friendster to owning a blog!  Now virtually any Internet user can express themselves and shout on the Internet by blogging.  Even those who used to consider Internet as a scary place started to speak up!  Think about it.  It’s easier to learn WordPress than Microsoft Word!

So the Internet population has been transformed from content consumers to content “prosumers” (producer-consumer).  The technologies have turned non-users of the Internet to voice our thoughts, to using the Internet to rave about anything!

But many people in this country are still not using the Internet yet.  But watch and see.  When mobile Internet becomes so pervasive in our mobile phones, there will be more people surfing the Internet on mobile than through PC.

If most mobile users know how to send an SMS message now, they will know how to “micro-blog” in the future.  Microblogging tools such as Twitter may not be so popular and useful now.  But it will be in the future as more non-Internet users become Internet users via mobile phones.  At that time, even more people will publish content on the cyberspace!

Some time ago I received an email from a Singaporean who just took a course in BOS at UCSI Blue Ocean Strategy Regional Centre, and commended how good the training had been.  I soon surfed to their web site and found it interesting.  But I didn’t notice their building was quietly being constructed right near my house until I passed by recently!

It is good news that more and more businesses are becoming aware of the dangers competing in red ocean, and the importance of creating their own market (blue ocean) by making the competitors irrelevant.  Easier said than done.  But it is achievable.  And there have been many success stories, both locally and abroad.

It is good for the businesses as they can transform their businesses and earn like never before.  They will no longer need to rely on competitive tactics, and even unethical ones, to outsmart one another.  It is good for the market as businesses truly listen and study what it needs, and even discover what it really needs.  It is good for the society as our lives can be improved through creativity and innovation in blue ocean strategy.

But what happens when everyone is doing BOS?  Not every BOS will be good BOS strategy.  Some can be BS strategy.  It will be interesting to see what happens in future when “blue ocean strategy” is as commonly understood and practiced as “differentiation”, “segmentation” and “branding”.

Are you not on the BOS bandwagon yet?

I turned on the radio and tuned to FM 89.9 immediately.  I was so delighted to have found such a channel that I have long yearned for

I’ve been the type of person who don’t listen to music while driving.   No, I was not like this when I was younger.  I spoilt my car audio speaker before for playing rock music too loudly in early years of driving.  It is also not that I don’t like music.  If you go karaoke singing with me, most likely I’ll sing more than you.  But as I grew older, I just became the kind of person who would not turn on car radio for music any more.

But apart from its normal programmes, BFM is music most of the time!  In order not to miss any good business programmes, now I keep the radio on while driving and listen to music after so many years!

The moral of this story is that, BFM turned me from a non-customer into a customer.  Just as Nintendo successfully turned non-customers such as adults to its Nintendo Wii video game console, BFM just successfully turned me into listening to music!

Instead of taking away existing customers from competitors in the market, this is defining a new market boundary by appealing to non-customers and turning them into customers.  A blue ocean strategy!

Thanks to Exabytes who treated business partners, suppliers and customers to watch Madagascar: Escape 2 Africa in Cathay Cineplex, free of charge!

As we could see, the cinema hall was packed with people.  As we walked around the cineplex and The Curve shopping mall nearby, many people were carrying the free bags given by Exabytes.

From a humble beginning of a few staff members just a few years ago, Exabytes have grown into the most successful, interesting, admirable, enviable and happening hosting provider in Malaysia!

Not to mention many awards they have  won over the years, including the prestigious Golden Bull Award given to the best SMEs in Malaysia, not one time, but two years in a row – last year and this year again!

Years ago I already thought of using their services, but was bogged down by my hesitation to switch provider.  I also considered their lack of their own data centre, and lack of 24-hour phone support as their down sides when compared to another I was using.

But as their boss Chan told me, even if they had the money for a data centre, why use it for a data centre while it could be used for other better purposes?

We know the web hosting industry in Malaysia is a typical red ocean.  But Exabytes seem to have adopted the four action framework (Eliminate, Reduce, Raise, Create) in the blue ocean strategy, among other things they have done.

Unlike some other providers, they eliminated the need for their own data centre.  They reduced their phone support to the minimum.  These two alone are very costly yet not very productive for a hosting provider.

But they raised the quality, variety and innovation of their products by catering to the niche markets such as students, bloggers and resellers.  And most importantly, (to the customers ) they created the FUN in hosting with them with their regular freebies, prizes, giveaways, PR events such as this movie day.  Hosting service is very much a functional product, but Exabytes are not just providing the functionality, but appealing to our emotions as well.  I believe they are also among the most interesting companies to work in!

The thrust of a blue ocean strategy lies in the value innovation, the innovation of values offered to customers yet at a lower cost.  They save much money and do away many headaches by eliminating and reducing unproductive things, but use it to raise and create something very interesting and impactful.  Money well spent!

So Exabytes, congratulations on your success.  I believe you will not sit on your laurels, but grow from strength to strength to become not just a good company but a great one!  Syabas!

However, as I browse through the web sites of law schools on the Internet, such as that of ATC (Advance Tertiary College), I don’t quite find what I want, unless I don’t mind taking a single subject in courses like ICSA. These law schools cater for those who want to be lawyers, but not working people who want to learn more about law like me.

According to an insider, the higher education industry in Malaysia is very competitive. Not many private colleges are making money. In fact, many are struggling and are on the verge of closing down. There are thousands of colleges, institutions and training centers registered with the two government ministries in Malaysia. But how large is our population?

The colleges need to seek a way out, not to fight head to head with other colleges, but to seek their own way. I guess they need their own blue ocean strategy.

One example is not to see what other colleges offer and follow suit. That is, not to benchmark others. But they are to look beyond their traditional customers and find out what non-customers want.

Take my case as example. Law schools like ATC could look beyond their traditional market boundary consisting of those who want to take up law as their career. Perhaps they could offer law courses to those currently not their customers who are interested in gaining some knowledge in law, and catering for what they need.

Colleges could design new courses in response to what the market wants. They could win by devising and executing a blue ocean strategy. But sometimes you need a paradigm shift to look beyond what is being done now…

How about you? Are you able to find the course that you would like to take?

I’ve been holding certain things very dearly too.  But when I look into these things, I could find that they may not be as valuable as I’ve been thinking them to be.  Are they really that important?

Sometimes these things can even keep me from focusing my time and resources on the most important life goals.  They may be good things, but may not necessarily the best ones in life.   The enemy of “best” may be called “good”.

Perhaps sometimes we need to learn how to let go certain things, so that we can no longer be bondaged by them any further.  Surely there will be pain forgoing something which have been very dear to us so far in life.

In the four actions framework (Eliminate, Reduce, Raise, Create) according to the Blue Ocean Strategy, a business may need to examine what it offers and find out what is not really important and necessary, and learn to eliminate them (but raising and creating other values).  I heard that if there is no pain and resistance to do so, then there is not really eliminating anything.

Similarly there will be pain and resistance to let go something which have been valuable in our life.  But if we don’t learn to stop going after these things, we can be like chasing after the winds, achieving nothing much at the end.  Let’s say NO to these things so that we can say YES to more important things!

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…

The blue ocean strategy is not only applicable to businesses, but in other contexts as well, though we can’t apply everything directly in those settings. In particular, the four actions framework is useful in planning our own personal life.

Whether we like it or not, everyone of us is a Me Inc., and we are the CEO of our own life. We do have a mission to complete on this earth in this life. And to achieve this, we have been bestowed with resources such as time and money.

The four actions framework can be used to differentiate ourselves (or our business) from others yet at a lower cost. It asks four main questions – what to Eliminate, what to Reduce, what to Raise and what to Create (ERRC)? Let’s take an example how I might want to plan my expenses:

Eliminate – In recent years, I have developed a habit of eating out in expensive restaurants with others, that now I patronize these places even when eating alone! I don’t have to spend so much when eating by myself. I need to cut this expense completely!

Reduce – I need to reduce buying seemingly useful but actually unnecessary items such as books and magazines. I don’t have so much time to read all of them!

Raise – I should spend more on high-leverage expenses which give good returns in long term. For example, taking classes to educate myself in business, finance and technology can go a long way toward success in life.

Create – I may want to consider some investment instruments such as shares, which as a risk-averse person I never tried. Of course, getting educated first in these is essential to avoid losses.

I find it helpful to that many things in business and life can be applied through this ERRC model. Is there anything you want to get ERRC’d too?

While I should not divulge much details on their strategies, suffice to say that they are both market leaders in their own market space. They have strategies in place to create new markets and make their competitors irrelevant.

What I like about them is that they painstakingly and devotedly shared their knowledge and experience in strategizing for the benefits of the business community. Hopefully more and more Malaysian companies will discover our own blue ocean strategy and bring our country to new heights!

I heard they are not paid for their speeches. However, it is still good PR and CSR service for their companies as they educated us on the technical aspects of their products – mineral water of Spritzer and cord blood stem cells of StemLife. I have learned something new

Here are a few lessons that impact me most:

• Value innovation – Offering innovative values to customers yet at a lower cost.
• Strategy canvas – A visual tool to assess the state of a firm and reorient it against competitors.
• Four actions framework – Deciding what to eliminate, reduce, raise and create.
• Attracting non-customers – Redefining the market by looking beyond existing customers to non-customers.

Here are two incoming events conducted by Lifelong Learning initiative by MCA (I’m not affiliated to MCA):

1. Talk on blue ocean strategy on 24th April
2. Reading session on blue ocean strategy and the success stories of Malaysian enterprises on 26th April

Would you like to join me?  Please contact me here.