FEATURE- Swim, Jump and Fly with Blue Ocean Strategy

By Timothy A. Edward

In this leap year, individuals and businesses are on a new playing field and implementing the Swim, Jump and Fly concept with the Blue Ocean Strategy which will stand in good stead. ‘Swim’ means learning how to overcome initial fears and taking the steps towards achieving goals. ‘Jump’ stands for the need to be encouraged to take risks and embrace change. And ‘Fly’, it represents the need to soar to new heights and live a life of purpose and passion.

To reap the full benefits of the Swim, Jump and Fly concept, the Blue Ocean Strategy seems the ideal choice. For, it focuses on creating uncontested market space and making competition irrelevant. It encourages businesses to move away from the traditional “red ocean” of cutthroat competition and instead, create a new market space where they can thrive and grow. This strategy has been successfully implemented by various Sri Lankan companies like Dilmah Tea, Jetwing Hotels and The Good Market, just to mention a few.

The key components of the Blue Ocean Strategy include:

1. Creating new demand: Instead of competing in existing markets, the blue ocean strategy focuses on creating new markets and industries by identifying unmet needs and creating products or services that address them.  For example offering unique and authentic Ayurvedic treatments and wellness experiences.

2. Differentiation: The strategy emphasises the importance of standing out from the competition by offering unique products or services that have a clear differentiation from existing ones. Clothing brands that focus on creating a unique and memorable shopping experience for its customers will fall under this category.

3. Cost-effectiveness: The blue ocean strategy also emphasises the need for cost-effectiveness. This can be achieved by eliminating unnecessary features or services that do not add value to the customer and focusing on what is truly important to them. A good example would be airlines identifying a niche market by offering direct flights from Sri Lanka to previously underserved destinations such as China, Japan and the UK.

4. Value innovation: This is a key concept in the blue ocean strategy, which involves creating new value for customers while also reducing costs for the company.  One example under this category is the introduction of PickMe, which entered the market with a unique business model that focused on both convenience and affordability when compared to traditional taxis and three-wheelers.

5. Non-disruptive: Unlike traditional disruptive strategies that aim to overthrow existing players in the market, the blue ocean strategy focuses on creating new markets and industries without causing harm to existing players. Classic example is the introduction of online grocery shopping and delivery services.

6. The four actions framework: This framework helps companies identify and eliminate factors that are taken for granted in their industry, reduce or eliminate factors that are overvalued by customers, increase factors that are currently under-delivered, and create new factors that the industry has never offered before.  Example: Dialog offering affordable data and call plans, introducing a loyalty programme called 'Dialog Star Points', and creating a digital platform called 'MyDialog' which allowed customers to manage their accounts, pay bills, and purchase services online etc.

7. The six paths framework: This framework helps companies explore new opportunities and identify untapped market spaces by looking at different ways to redefine their industry, create new offerings, and discover new customers. Cinnamon Air, that provides seaplane and land plane services to various destinations within the country can be seen as a company that utilised this framework.

8. The Blue Ocean Canvas: This is a visual tool that helps companies to systematically and holistically look at their business and industry from the perspective of the blue ocean strategy. It includes four key elements: buyer utility, price, cost, and adoption cycle. Many leading apparel manufacturer use this.

9. Execution: The blue ocean strategy emphasises the importance of execution and implementation to turn ideas into reality. This involves identifying key actions and initiatives, setting clear timelines and targets, and constantly reviewing and adjusting strategies as needed.

10. Continuous innovation: The blue ocean strategy is not a one-time event but a continuous process of innovation and adaptation. Companies must constantly search for new opportunities and adapt their strategies to stay ahead of the competition and sustain their success.

The time is ripe for us to swim, jump and fly high with the blue ocean strategy to make Sri Lanka once again the sought-after business and tourism destination.