Think about these questions:
Are you facing increased competition? Focused more on cost cutting at the expense of innovation and investment? Do you blame slow or no growth on the market? Are you commoditizing your travel experience rather than seeking out your ‘ideal guest’ and aligning your assets/attributes with customer expectations? Do you look like all others in your sector? If so – can you list how you truly differ from others? If you answered yes to the first questions, and then struggled with the last one, you could be swimming in a RED OCEAN.
Red oceans reflect a culture, management approach and way of thinking that focuses on competing in existing markets – rather than creating uncontested market space (BLUE OCEANS) – also commonly known as a unique niche market with a highly targeted customer.
Red ocean thinkers focus on beating the competition rather than making the competition irrelevant (Blue Oceans)
Red ocean companies concentrate on exploiting existing demand rather than creating and capture new demand (Blue Oceans).
Red ocean companies concentrate on value-cost trade offs or pricing for value as you know your customer so well and what they are willing to pay for (Blue Oceans)
And, my personal addition to this list, from award winning authors of Blue Ocean Strategies … Innovative, companies focus on the customer, the customer experience and manage their business through coaching and mentoring vs control and command.
Need a good read? Get this book today! It’s on sale because it was published in 2005, but 40 million readers later, the principles are just as applicable today — that is if you want to be different!