Recently, I had the privilege of participating in a seminar dedicated to facilitating innovation and creativity in the SMEs sector. The event was a success, drawing a sizable and diverse audience who are eager to find inspiration in a constantly changing business landscape.
The Hong Kong economy, often seen as a major commercial powerhouse, was the first topic we focused into. A high sense of uncertainty seemed to be growing amongst the participants. The major concerns evolve around the high local operational costs, the scarcity of available labor, and the intense competition from mainland China and other neighboring countries. In an attempt to shift the tide from pessimism to optimism, I shared an enlightening experience from my recent trip to Edinburgh, Scotland.
During my recent visit, I was surprised by the sight of many empty retail spaces even in the most prime locations, a strong indication of the harsh economic climate faced by the city. Some of my personal friends in the restaurant business voiced great concerns similar to those in Hong Kong, painting a very gloomy picture of the catering industry. Yet, amidst the depressing environment, there were exceptional successful restaurants bustling with activity, commanding long queues and requiring bookings made weeks in advance.
This observation led me to investigate deeper into the characteristics of their success: Why do certain restaurants thrive while others falter? The answer, it seemed, lay in the strategic application of the Blue Ocean Strategy in their business models. These successful establishments were not just selling food; they were offering unique experiences. Whether through inventive cuisine, an inviting ambiance tailored to a specific clientele, or impeccable service, they distinguished themselves. Their success was not by chance but the result of deliberate planning and execution, creating a business model not easily replicable.
The essence of the Blue Ocean Strategy lies in innovation and creativity to create new value for customers, unlock new demand, and reveal uncontested market spaces. It is not always about reacting to known customer needs but about anticipating and creating needs that customers themselves may not yet recognize. The influential research by W. Chan Kim and Renee Mauborgne, which introduced the Blue Ocean Strategy, offers a comprehensive plan and practical tips for navigating and creating these new market spaces. Many transformation stories such as Netflix, Tesla and Uber are truly inspiring.
After challenging the participants to rethink their current business models, I witnessed a definite shift in their mindset. The room energized with new discussions, brainstorming sessions, and a willingness to explore uncharted territories. Some attendees were already sketching out plans for market research and prototyping new products and services. Their shift from very pessimistic to taking a lead for change is very enlightening.
This article is not about the elaborate details of the Blue Ocean Strategy or the methodology of its implementation. It is about the importance of adopting a growth-oriented and innovative mindset. Believing in the possibility of improvement and having a strong sense of purpose that can help overcome even the most daunting challenges.
It is important to maintain a strong belief that opportunities are always present, regardless of the market space in which you operate.
If you easily give in to the idea that the market is too saturated or lack of new prospects, that belief may well become your self-fulfilling prophecy. On the contrary, if you can embrace a Blue Ocean mindset that can motivate you to a path for transformation, you might well be able to turn adversity into great opportunity.
Questions:
From your experience, how relevant is the concept of Blue Ocean strategy applies to your business?
Will you like to share with us some of your personal examples?
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