In a complex world, you don't need to choose a complex strategy to build a valuable business. That's the beauty of it.
Most of it is a choice (based on factors like personal inclinations, arbitrage opportunities, market gaps, and so forth) of which hook you want to use to tackle the market.
From there, it's a matter of sticking with that hook until it makes your business take off. However, the tricky part is that execution needs to be relentless, and it might take years before your vision starts to be shaped by the market!
Now that you are warned, what are some "strategy hooks," or as I like to call them, "strategy levers" to get you started?
A complete list is below, with links on the titles, which will bring you straight to the complete resource!
In the business world, a Blue Sea is a space/market easier to navigate as it’s not crowded like the classic red ocean. However, the Blue Ocean focuses on creating uncontested markets. The Blue Sea strategy looks at zooming as much as possible within existing markets to find your minimum viable audience.
Recap: In this issue, there are ten strategy levers!
- Blue Ocean Strategy: This approach involves redefining market boundaries and creating new markets with uncontested spaces. The goal is to provide exceptional value to customers at a lower cost. It involves finding new ways to innovate and render competition irrelevant, thus breaking the traditional trade-off between value and cost!
- Blue Sea Strategy: Similar to the Blue Ocean concept, the Blue Sea strategy emphasizes finding less crowded spaces within existing markets. The focus is on identifying a minimum viable audience and delivering unique value within those niches. This starts from the assumption that you can build an extremely valuable business by looking at a tiny niche (a microniche). The exciting thing is, with the Blue Sea Strategy, you create options to scale over time!
- Constructive Disruptor: This strategy involves being open to change, adaptation, and innovation to shape the industry's future. It focuses on pillars like lean innovation, brand building, supply chain optimization, and leveraging digitalization and data analytics. Through this strategy, you leverage the company's existing distribution network to launch new products that further tap into that distribution.
- Disruptor: Disruptive innovation, coined by Clayton Christensen, describes how new products or services initially target the bottom of the market and eventually displace established competitors through innovation and market adaptation. The disruptor will start from the bottom of the market and slowly, then suddenly, move upstream!
- Niche Player: A microniche is a subset within a niche, which can be leveraged by digital businesses to prevent direct competition with large platforms. As a microniche grows into a niche and eventually a market, scaling becomes feasible.
- Blitzscaler: Blitzscaling emphasizes rapid growth under uncertainty to establish a first-scaler advantage. This approach prioritizes speed over efficiency and aims for market domination.
- Continuous Blitzscaler (Amazon Flywheel): This strategy, used by Amazon, focuses on improving customer experience to drive traffic, thereby enhancing the selection of goods and decreasing prices. The positive cycle continues as lower prices attract more customers.
- Octopus Strategy (OYO Model): The OYO business model involves expanding into various verticals from its initial aggregator role, covering a broad spectrum of short-term real estate offerings.
- Gatekeeper's Model: In a world dominated by tech giants, this model suggests that small businesses need to pass through these gatekeepers to reach key customers, making them crucial enablers for global business reach. In that respect, a small business can learn the access key to gain distribution through these gatekeepers. And on the other side, if you want to build a gatekeeping company, you need to focus on building massive distribution.
- Surfer Model: The Surfer Model entails crafting a business approach that capitalizes on inherent conflicts within the dominant player's business model. By strategically designing a model that exploits these conflicts, you create a structure that disrupts the entire established company's framework, rendering them incapable of effectively countering your approach. This method relies on identifying vulnerabilities in the dominant player's strategy and leveraging them to build a resilient and competitive business model.
With ♥️ Gennaro, FourWeekMBA
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