Creating Blue Oceans

Who do you call your target customer?

In most industries, all the fundamental strategic differences among customers are captured by a small number of clusters called “strategic groups.” Most companies focus on improving their competitive position within an existing strategic group.  But why not create your own strategic group which can draw customers away from several of the traditional groups simultaneously?

Consider the International Date Line, and its possible application in establishing a new strategic group within the office rental market. Essentially by crossing this imaginary line you can gain or lose an entire day. By building an office complex right on it, a real estate developer could cater to a new strategic group: Business tenants looking for an exotic, off-shore presence, and at the same time seeking a solution for effective time management. 

Being in the middle of the Pacific Ocean would certainly be exotic. And here, whenever overwhelmed with work or hopelessly behind schedule, occupants could simply walk over to the part of their office that was a day behind, and immediately have an extra 24-hours to catch up. Conversely when having little going on, they would just step across the line in the other direction, and it would instantly be one day later.

[Image via lexico.]

Is your buiness positioned for growth in 2010?

Is your buiness positioned for growth in 2010 — or will it become another lava casualty?  As we head into a new year, we feature a recent article from Entrepreneur magazine which spotlights top growth strategies for 2010.  Amongst them:  Changing how you do business in an industry through distinctive strategies and Blue Ocean-like thinking. 

As an example, the story gives a brief insight into how redbox is re-defining the movie rental business.  Via MSNBC:

Redbox is a series of self-serve kiosks located at very convenient locations like grocery stores and drug stores. Rental costs $1--with no late fees--and you can return your DVD at any Redbox location

Redbox is competing against Blockbuster, Netflix and digital downloads of movies. So how can a company succeed by making people drive to pick up their DVDs again?

The company did so by taking a "Blue Ocean" approach (a new way of thinking, as discussed in W. Chan Kim and Renee Mauborgne's book Blue Ocean Strategy) in the crowded "Red Ocean" (a more traditional approach) movie rental industry just like Netflix did a few years ago.

Redbox knew there was an opportunity in DVD rentals outside of what the biggest players were doing. The key was finding a competitive position that would meet an unmet need.

By taking this "Blue Ocean" approach, Redbox changed the game based on some key consumer insights:

• Consumers don't want to wait for their movie in the mail. Movies are as close as thenearest Redbox, located in the places people already frequent (so they seem even more convenient).

• Consumers don't want to pay subscription fees. Redbox lets you rent on your own terms and timeline.

• Consumers don't like late fees (a confirmation of Netflix's strategy).

• Redbox lets you reserve your favorite movies at your most convenient location through the company's website.

The result: Redbox grew by 147 percent last year, and it grew by 105 percent the year before.

[Image via Money Listens.]

The Perfect Calm Series: Six Solutions for Saving Water and Saving Lives

One of the most exciting spheres of application for Blue Ocean Strategy is the realm of Social Capitalism. This explosive market space is at the intersection of successful business and lasting social impact. Traditionally these two spheres were considered separate, but the two can be pursued simultaneously via Blue Ocean Strategy. Periodically, we feature stories which illustrate stimulating ventures, ideas and concepts targeting this very market space.

Especially fitting in light of Gabor’s recent visit to Chile, we select the story:  Six Solutions for Saving Water and Saving Lives.

Do you know of other companies, organizations or business visionaries sailing along the intersection of good business and social good? Share your ideas with the Creating Blue Oceans Community.

[Image via Fast Company.]

The Air Force gets involved

It was a good thing that Chile did not come under aerial attack last Monday, as Gabor met with the Commander of the Chilean Air Force, General Ricardo Ortega, and his top brass of advisors, for a behind closed doors luncheon at the prestigious Air Force Club in downtown Santiago.  The meeting was quite amicable and touched on several areas where the public or military sector of Chile could use some fresh perspectives.

[Image via Defense Industry Daily.]

CEOs embrace Gabor’s message of Unconventional Wisdom and Blue Ocean Strategy

Today we share with our readers the closing installment of our week-long coverage of Gabor’s visit to Chile.  The bouquet of high profile activities, ranging from multimedia interviews to private and public events, came to a close with a highly charged final session.

On Friday, dozens of CEO’s from Chile’s most respected companies and organizations gathered at the Ritz-Carlton Hotel for an invitation-only presentation on the theme of Defying Conventional Wisdom and Blue Ocean Strategy by Gabor.  At the end of the well-received presentation — which  underscored the need for Innovation  in a region which has long been dominated by more traditional thinking — Gabor challenged participants to be the first Latin American company on the Top 50 list of most innovative global organizations.

The session was wrapped up with an interview on CNN Chile.

Don’t miss out!  As a reminder, selections from recent interviews with Gabor will be made available to our readers in the upcoming weeks.  To be the first to know, send an email to info@creatingblueoceans.com .  

[Image via Ritz-Carlton Hotels and CNN Chile.]

Tuning-in to Gabor’s Innovation message

During this action-packed week in Chile, Gabor made the rounds with the country’s most prominent news providers — coordinated by Soledad Rodriquez and business bureau.  Here is a behind the scenes glimpse.
 
Gabor put on his best radio face to do an interview with one of Chile’s most respected radio hosts, Beatriz Sanchez, of ADN 91,7 Radio Chile. The interview focused on the timing of Gabor’s visit and the immediate applicability of the message and methodology he brings.

 

Next up, Gabor was chauffeured straight to the studios of TVN 24 Horas, Chile’s leading TV broadcasting company, for an interview with Finance and Economy journalist and television impresario Sebastian Pizarro Cristi.
 
And the afternoon was rounded out with a conversational interview with Emilio Maldonado, journalist of the most prominent economic daily newspaper of Chile, Diario Financiero.
 
A common theme throughout the interviews was the motivational effect of the current crisis for organizations to embrace unconventional thinking and strategy.  With so many media channels utilized, executives and government officials in Chile can’t help but hear the message.

In the upcoming weeks, we will be making portions of these interview available for our readers.  To be notified immediately once they become available, send a note to info@creatingblueoceans.com .

Telmex sets sail for Blue Oceans

Next up in our series covering Gabor’s high-profile visit to Chile, we visit the sunny, seaside town of Vina del Mar.  Vina del Mar served as the inspirational backdrop for the Workshop led by Gabor this week for the senior management of Telmex.
 
Telmex is the first company in Chile to apply the joint principles of Defying Conventional Wisdom and Blue Ocean Strategy, positioning itself as a true pioneer in a region where a tendency toward more traditional thinking is widespread.

The company didn’t just get its feet wet, it plunged fully in. Its entire 60 member team of top executives took part in the mind-opening session, with the intent of becoming a success example not only within Chile, but also within Telmex’s international group of companies.

After the Workshop, as seen in the photo to the right, Gabor is spotted with a couple of the brave participants from Telmex’s executive team: Francisco Chaparro, Communications Manager and Patricio Varas, Marketing Manager.

About Telmex:  Telmex Internacional,  is a Mexican holding company. The Company through its subsidiaries in Brazil, Colombia, Argentina, Chile, Peru, and Ecuador provides a range of telecommunications services, including voice, data and video transmission, Internet access and integrated telecommunications solutions; pay cable and satellite television; and print and Internet based yellow pages directories in Mexico, the United States, Argentina, and Peru.

To schedule your organization’s highly-rewarding and insightful Workshop led by Gabor, get in touch with us at info@creatingblueoceans.com .

INFOWEEK cover story — exclusive interview with Gabor

Continuing in our week-long coverage of Gabor’s activities in Chile, today we share with our readers a sneak peak of the cover story from INFOWEEK, Chile’s leading Innovation magazine.  The December issue, coming out this week, features an exclusive interview with Gabor.

To read the full article in Spanish, click HERE (opens in PDF).

For those readers who would like an English copy of the article, send us a quick note to info@creatingblueoceans.com .

The December issue of INFOWEEK will be available at all major booksellers and newsstands throughout Chile beginning this week.

Touching down in Santiago de Chile

This week we have a special treat for our readers.  All week long we will be covering Gabor’s high-profile visit to Chile — ranging from multimedia interviews to private and public events on the theme of Defying Conventional Wisdom and Blue Ocean Strategy.  Gabor’s visit is in partnership with business bureau, Chile’s boutique provider of innovative concepts and events. 

It is no coincidence that Gabor’s recent arrival is happening in tandem with Chile’s pivotal Presidential elections, where Innovation has become a focal issue in one of the only global economies to weather the recent global financial crisis (see PDF report The Chilean Economy in the Current Global Financial Crisis).  For an enlightening overview of the current social and political landscape, and why the emphasis on Innovation, we bring to you a recent article entitled “Healing Chile’s Malaise.”

From BusinessWeek:

Chile has come a long way since 1990, when democracy was restored after 17 years of military rule. The economy has been one of the world's fastest-growing, inflation is a distant memory, the poverty level has fallen to 13% from 45%, and per capita gross domestic product has quadrupled, to US$10,100...

Many Chileans feel a certain malaise. They know their country is one of the most prosperous in Latin America due to fiscal discipline and the profound free-market reforms of the past 30 years. But Chile's explosive, Asian-style growth of the 1990s has given way to expansion averaging just 3.5% annually this decade. And despite efforts to diversify, volatile copper earnings continue to account for more than half of total exports. So Chile's leaders are seeking to reduce that dependence and nurture a knowledge-based economy via better schooling and more innovation.

While Chile ranks well on innovation vs. its Latin American peers, the government and business leaders know it must do more.

[Image via Vantage World Travel.]

The Perfect Calm Series: In Denmark, Ambitious Plan for Electric Cars

One of the most exciting spheres of application for Blue Ocean Strategy is the realm of Social Capitalism. This explosive market space is at the intersection of successful business and lasting social impact. Traditionally these two spheres were considered separate, but the two can be pursued simultaneously via Blue Ocean Strategy. Periodically, we feature stories which illustrate stimulating ventures, ideas and concepts targeting this very market space.



This week, we select the story:  In Denmark, Ambitious Plan for Electric Cars.

Do you know of other companies, organizations or business visionaries sailing along the intersection of good business and social good? Share your ideas with the Creating Blue Oceans Community.

[Image via btrplc.]