Flirting With Blue Ocean Strategy: iDate 2010 Blue Ocean Strategy Presentation
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description
The online dating industry is mired in a red ocean; an enormous number of websites are engaged in an expensive and oftentimes futile battle to gain tiny market share at great expense. The attached presentation was given at the iDate 2010 Conference and focuses on how to apply Blue Ocean Strategy to the online dating industry to stop competing and make competition irrelevant.
Transcript of Flirting With Blue Ocean Strategy: iDate 2010 Blue Ocean Strategy Presentation
Copyright Michael OlenickBlue Ocean Strategy® Kim & Mauborgne [email protected]
Who Am I?
Michael [email protected]
• Certified Blue Ocean Strategy Consultant
• Partial list of inventions:• Online Pregnancy Calendar (sold to iVillage)• Web Print Framework (sold to Avery Dennison)• Photo Stamps (licensed to stamps.com)• Avery Photo ID System (sold to GE)• iDivorce.com• Co-founder, pregnancy.org• Blue Ocean Strategy Createware
Copyright Michael OlenickBlue Ocean Strategy® Kim & Mauborgne [email protected]
What is Blue Ocean Strategy?
Value Innovation• Redefine markets to make competitors
irrelevant• Red Ocean vs. Blue Ocean
Fair Process• Managerial Roadmap• Employee communication and involvement
affect productivity
Tipping Point Leadership• A tiny number of people are disproportionately
influential• Applies to organizations and customers
Copyright Michael OlenickBlue Ocean Strategy® Kim & Mauborgne [email protected]
Blue Oceans vs. Red Oceans
Red Ocean Blue Ocean
• Compete in existing markets • Redefine boundaries: make new markets
• Beat the competition • Make the competition irrelevant
• Chase existing customers • Create and capture new customers
• Trade off cost and value to buyers • Increase value while decreasing cost
• Align organization towards differentiation or low cost
• Align organization towards differentiation and low cost
Adapted from “Red versus blue.” Full presentation at www.blueoceanstrategy.com/downloads/bos_web.pdf© Kim & Mauborgne
Copyright Michael OlenickBlue Ocean Strategy® Kim & Mauborgne [email protected]
“Make the competition irrelevant” – Nintendo Wii
“IDC does not believe that any of the three [game] consoles will be able to dominate…”── TG Daily, March 2, 2007
Source: NPD, Jan. 2009
ELIMINATE REDUCE
RAISE CREATE
• Movies • HD Video• Real-time physics
• Fun• Ease of learning
• Magic Wand
“Duh – you don’t buy a Wii or a 360 or a PS3. You buy a Wii and a 360 or PS3.”── Ezra
Copyright Michael OlenickBlue Ocean Strategy® Kim & Mauborgne [email protected]
How? Value Innovation
• Research Key Factors of your site offer buyers the most value and Increase them. Create a new key factor or two.
• Eliminate and Reduce factors whose value don’t align with cost.REDUCECOSTS
INCREASEVALUE
VALUEINNOVATION
Identify Buyers & Non-Buyers
Analyze Across the Six Path Framework
Extract Key Factors
Eliminate-Reduce-Raise-
Create
Create new Strategy Canvas
Copyright Michael OlenickBlue Ocean Strategy® Kim & Mauborgne [email protected]
Secret Sauce: Non-Buyers & the Six Path Framework
Buyers• Current Customers• Unlikely to leave
Tier 1 Non-Buyers• Current Customers• Likely to leave sometime soon
Tier 2 Non-Buyers• Non-Customers• No good reason they’re not buyers
Tier 3 Non-Buyers• Non-Customers• Appear to have no interest
Time/Trends
Chain of Buyers
Strategic Groups (Trade Up/Down)
Alternative Industries
Complementary Products & Services
Functional/Emotional Appeal
Buyers & Non-Buyers Six Path Framework
Copyright Michael OlenickBlue Ocean Strategy® Kim & Mauborgne [email protected]
Today’s Dating Industry: Mired in a Red OceanProblem Example
“Value” is commoditized • “Men will get disappointed if they send out flirts, send out emails, and don’t get a response.”
• “Women are extraordinarily sensitive to the value of the site.”
Expensive Technology Arms-Race • “It’s extraordinarily expensive to add new tech.”• Everybody is trying to “introduce and find new
ways for members to communicate online.”Non-Buyers Ignored • “You have a limited number of people; the
marketplace of people who would use a dating site is limited.”
• “There’s a perception [online dating is] porn.”Red Ocean competition on same Key Factors
• “There is already a site for whatever you can imagine or dream … or soon there will be.”
• “You look at dating sites over the past ten years and there hasn’t been much change.”
Copyright Michael OlenickBlue Ocean Strategy® Kim & Mauborgne [email protected]
Distilling Key Factors
Time/Trends
Chain of Buyers
Strategic Groups (Trade Up/Down)
Alternative Industries
Complementary Products & Services
Functional/Emotional Appeal
Six Path Framework
Communities of interestOn-site communicationDon’t embarrass meRespect my preferencesDon’t waste my timeBe my shrinkSend a teeming hordeNew tech platforms
Copyright Michael OlenickBlue Ocean Strategy® Kim & Mauborgne [email protected]
Eliminate-Reduce-Raise-Create
ELIMINATE REDUCE
RAISE CREATE
• Be my shrink• Send a teeming horde
• On-site communication• New tech platforms
• Respect my preferences• Don’t waste my time
• Communities of interest• Don’t embarrass me
Copyright Michael OlenickBlue Ocean Strategy® Kim & Mauborgne [email protected]
Next Steps & Q/A
• Buy the book• Read the book (seriously!)• Remember: Reducing & Eliminating are tougher, but more
important, than Raising & Creating
• To find a consultant: www.blueoceanstrategy.com/net/training_org.php
• To contact Michael:• Michael Olenick
Tel: +1 [email protected]
