In a business landscape where the competitive rivalry often appears insurmountable, organizations are constantly in search of strategies that not only allow them to survive, but also thrive in ways previously unimagined. The Blue Ocean Strategy presents a fresh approach, emphasizing the creation of uncharted market arenas—’blue oceans’. At its core, lies the 4 Actions Framework. By addressing four pivotal evaluative questions, organizations can steer themselves towards unique value propositions, reducing costs, and setting themselves apart from competitors.
1. Eliminate: Rethinking Industry Assumptions
The first step in this strategy is to scrutinize and question the very elements the industry takes for granted. Are there factors considered essential but might not be critical to consumers?
Case Study: Cirque du Soleil Traditional circuses banked heavily on animal acts and star performers. Cirque du Soleil eliminated these, opting instead for a unique blend of theatre, music, and acrobatic performances. This bold move distinguished them from other circuses, creating an entirely new category of entertainment.
2. Reduce: Cutting Down the Excess
Just because something has always been done in a certain manner doesn’t mean it’s the best way. By reducing specific elements beneath industry norms, firms can shed unnecessary baggage, resulting in cost savings.
Case Study: Southwest Airlines
Southwest significantly reduced elements like in-flight meals, seat assignments, and inter-airline baggage transfers. This allowed them to offer competitive prices, becoming a leader in the budget airline segment.
3. Raise: Exceeding Industry Standards
Where can value be added? What can be done better than the competition? By identifying and amplifying elements beyond industry benchmarks, companies can differentiate themselves in ways competitors haven’t.
Case Study: Apple’s iPhone In a market dominated by feature phones and business-focused smartphones, Apple raised the bar in terms of design, user interface, and functionality with the iPhone. The result was a groundbreaking device that transformed the mobile industry.
4. Create: Venturing into the Unexplored
Perhaps the most ambitious of the four actions, this involves introducing elements that the sector has never considered. This is where true innovation lies.
Case Study: Netflix Instead of just being a DVD rental service, Netflix created an online streaming platform. This move not only revolutionized home entertainment but also reshaped the entire movie and TV industry.
Dr. Dawkins Brown, the executive chairman of Dawgen Global, aptly stated, “Innovation is not merely about doing different things but about seeing things differently.” The 4 Actions Framework is a testament to this sentiment, urging businesses to recalibrate, rethink, and re-imagine their offerings.
By embracing the 4 Actions Framework, organizations don’t just find a way to survive in the fierce competitive arena. They redefine the game, setting new benchmarks, and charting waters previously thought inconceivable. The result is a distinct value proposition, leaner operational costs, and an enviable market position.
