Article by Justin Hayslett, Sr. Global Advisor at Lombard Global, Inc. www.lombardglobal.com and  www.justinhayslett.com

Maybe it’s time to do something different.

Maybe it’s time your business stops copying and begins to innovate.

Maybe it’s time to set your business apart with a new global business strategy.

In this article, we are going to share an organizational strategy that can help you move your organization into uncontested waters, and how you can use this in your overall international business strategy.

Many times, organizations look at how they can beat their competitors. The Blue Ocean Strategy shows how your business can make its competitors irrelevant by creating a completely new market.

Here are five areas of The Blue Ocean Strategy:

1) Create Uncontested Market Space

2) Make the Competition Irrelevant

3) Create and Capture New Demand

4) Break the Value-Cost Trade-Off

5) Align the whole system of a company’s activities in pursuit of differentiation and low cost

The cornerstone of the Blue Ocean Strategy is:

Value Innovation:

This is the pursuit of both building value and lowering cost. By focusing on value innovation you make your competitors irrelevant by creating a whole new market.

Here are some frameworks to help your organization think through these issues:

4 Actions Framework:

Reduce

Which organizational factors should be reduced well below the industry standard? Plain and simply, radically innovate. Check out an article about the Tato Nano and how they completely re-invented its car and value chain to radically lower prices: Social Innovation – Innovative Cost Reduction to meet a social need.

Comb every area of your value chain to see how you can change the cost structure in your industry.

Eliminate

Which of the factors that the industry takes for granted should be eliminated? Analyse the industry you are in carefully.

You’ve probably heard the old story about the new married couple. On their first Thanksgiving the loving couple began making dinner together. Everything went well until it got to cooking the turkey. The wife grabbed it, and began cutting in it half. Almost out of desperation, the husband yelled out, “Stop.” You’re going to make it dry. Why are you doing that?”

The wife, startled, replied back, “This is how you make turkey. My mom always did her turkey this way.”

To get to the bottom of the situation the two began making some calls. First, the mother. The wife asked, “Mom, why do we cut the turkey in half before cooking it?” “Well, because that’s what my mom has always done,” she said.

Not stopping the search, the wife picked up the phone and called her grandma. “Grandma,” she said, “why did you always cut the turkey before cooking it in the oven?”

“That’s easy dear,” quickly replied, “my oven was too small to fit it in whole.”

What assumptions are being made in your industry that your organization can remove, and gain a competitive advantage?

Raise

Which factors should be raised well above industry standards?

Think Apple. The truth is, they do everything better than their competitors. That’s one of their key competitive advantages. Likewise, you be the best in your industry.

In his book The Dip, Seth Godin talks about quitting. His premise is to quit doing what you can’t be best at, and put everything into what you can be best at. Become the best in the world at whatever it is you do.

Maybe your organization needs to cut some areas, so you can focus on other areas, so you can be the best.

Create

What factors should be created that the industry has never offered?

Think differently, out of the box.

The book Blue Ocean Strategy uses examples of Yellow Tail for Wine, Cirque Du Soleil, and The Nintendo Wii.

ERRC Grid

Use the ERRC Grid to answer these questions and help create a new organizational value curve.

Begin to think differently about your industry. Especially as you look to expand your business and add a global strategy.

Ask the right questions and get some better answers, so you can blow your competitors away. Growing your business globally takes a strong and thorough International Business Strategy to succeed. Thinking through these frameworks can help you on your way.

To learn more buy the book –

Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant

Picture By: by draGnet ★