In another article, we had learned how Nintendo Wii made a giant leap, bounced back from big losses, and generated revenue in billion dollars. What they did is leaving that cruel competition and focusing on new market: casual gamers who need simpler and more intuitive gaming experience.
This strategy is in line with the creative mindset : “How do we think, plan, and execute something different to make competition irrelevant.”
Based on Blue Ocean Strategy, these are 4 challenging questions we need to consider and adopt into our business:
- Which of the elements of the industry have to be eliminated?
- Which elements should be reduced below the standard of industry?
- Which elements should be increased above the standard of industry?
- Which elements should be created that industry has never offered?
The first two questions force us to rethink the factors competed in even for a long time although they are no longer important or just hassle us without giving significant results. By considering it, we can reduce cost. Spending less means we’re able to allocate the rest budget into other needs.
The next two questions encourage us to increase the value and create a innovation movement that has never done before. It means creating advantages for both the company and buyers.
To make it more concrete, there is a tools to visualize that. It names Strategy Canvas. Check this out.
Let’s practice it right now! Take a sheet of paper!
In the horizontal axis, capture all factors that the industry are competing on and investing in. In the vertical axis, capture the level of offering. Then, rate them based on each factors offers by putting the dot. When you’re finished, connect the dots to make a curve.
What next? Plan an action by reorienting focus from competitors, it would be seen from your own curve. Make sure you make ‘different curve motion’ compared with your rivals. Focus on becoming alternatives and make a relationship with non-customers of the industry.
Forget about becoming the best. Better to become the only one, right?