Ricky’s Online Business Blog

The blue ocean strategy is more than just a business fad.  Now we can hear more and more people talking about it.  I can read more bloggers talk about “blue ocean” and “red ocean”.  Consultants and trainers are preaching about it.  Businesses, even non-profit organizations, are starting to adopt it.  One author even predicts that BOS (blue ocean strategy) will be prevalent for many years to come.

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?

One day when I was driving, I saw an advertisement at the back of a taxi that reads “Business, Finance and More”.  It’s BFM, a new radio station on business news and programmes!

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!

Last Saturday I got an escape to Africa with the likable Alex the Lion, Marty the Zebra, Gloria the Hippopotamus, Melman the Giraffe…

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!