We call a bloody business environment a Red Ocean.
Here are examples of how a Red Ocean looks like:
Having started several traditional businesses after retiring from my day job, I’ve learned why most businesses close down or fail to take-off. I thought starting a business thru a small franchise will give me a higher success rate and is also the best way for me to learn the basics. For the first few months, I enjoyed good sale, until someone puts another similar stall beside me. In just a few months, there were several more stalls selling the same stuff. I find it very hard to grow since all of us were competing for the same market,
Same thing happen with my boutique. Luckily, although competition is heavy, I was able to survive because of the ideal location I got and low overhead cost, but for the same reason, growth is slow to none.
Same with my real estate venture. A year ago, I utilize and find web advertising as a powerful method of prospecting were I get a good number of inquiries everyday that usually end to a sale. But given the growing number of agents learning and competing for good web spots, it has now been transformed into another “BLOODY RED OCEAN” in a very short time.
With these Red Ocean experiences, I pondered upon if there is a better way of doing decent business without getting slaughtered and with that search, I stumbled upon a great new school of thought which is the Blue Ocean.
1. Reconstruct market boundaries thus making competition irrelevant, and an impenetrable market possible.
2. Focus on the big picture, not the numbers
3. Reach beyond existing demand.
4. Get the strategic sequence right,
5. Overcome organizational hurdles, and
6. Build execution into strategy.
If you want to be in business this days, which ocean do you want to swim?