For family business to sustainably growth, Blue Ocean Strategy may be one of the keys as it focuses on being different or creating new space for growth.
Getting out of the bloody Red Ocean doesn’t need magic and by adopting Blue Ocean Strategy, there is a framework called ERRC (Eliminate, Reduce, Raise, Create). Blue Ocean Strategy does not require a systematic frame of mind, and these are four sharp questions you should ask your business today.
First, what should be eliminated? Don’t be afraid to throw away industry standards that are no longer cared about by consumers. Consumer behavior is driven by several factors, including:
– Technology that makes customer service and experience faster and easier
– Economic changes such as inflation and income that affect purchasing power
– Personalization demands
– Psychological factors
– Social and environmental trends, for example, prefer to buy products that are pro-sustainability and care about animals.
Second, what should be reduced? Cut things that cost a lot but have minimal impact. Efficiency is one of the important factors in business and has an effect on the competitive level of our products, which has a positive effect on better prices for consumers.
Third, what should be improved (Raise) above industry standards? The ability to always produce better comes from a company culture that supports innovation and creates better ones. Everything can be done if we don’t just look at the end result but pay attention to the process.
And last but not least, what should be created (Create) that has never been offered by anyone so far? In addition to understanding the competition, to understand what has not been offered can be done by understanding the community and their growing needs. Understanding sociology is one way to understand what products are not yet offered in the market.
By daring to throw away unimportant things and create new value, you not only save your budget, but also automatically give birth to products that have no competitors worth it.
Now try to pay attention to your surroundings. What industry standards, be it in F&B, fashion, or media, that you think are boring and should be eliminated immediately?
Real growth comes from creating new space—not fighting for old markets. If you want smarter strategy ideas, explore more on KVB.global. Share this with your team and follow Kultur Voice Business or KVB to rethink competition.
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