Owing to the fierce competition that SMEs and big Multinational Corporations have posed in the world of travel and tourism industry, it most surely is hard for the new and budding startups to survive and make their presence felt by others. In the pursuit to rise to the top, organisations with a strong footing are pretty successful in adopting various business and marketing strategies and providing the needed impetus to their growth and development. It often is believed that be it any industry, such big corporations would always have the upper hand and with their competitive edge owing to huge economies of scale, are able to make it hard for other firms to survive in the travel industry. But, let’s not forget that with feasible and efficient strategies and plans, no force in the world can stop your startup from outgrowing even these large sized firms in just a matter of time. So, to enlighten you on one such tactic, that you can apply to your travel startup, we are here with the ‘BLUE OCEAN STRATEGY’.
WHY IS A BUSINESS STRATEGY SO CRUCIAL FOR A STARTUP?
Whenever recession falls on the industry, or a huge competition surges, balance sheets for especially the small firms, often turns red. This is when a business strategy becomes inevitable for the businesses to apply. In their early stages of life cycle, start up ventures aim with all their will and might at gaining a certain amount of traction, amidst the intense competitions from other well established players, the heated economic pressures and the high risks associated.Therefore, for startups, it is very crucial to adopt well laid out strategies. A coherent strategy is both imperative to the success of the startup as well indicative of the leadership skills of the entrepreneurs.
WHAT EXACTLY IS THE BLUE OCEAN STRATEGY?
The blue ocean strategy demands that businesses seize opportunities and take the initiative to invent and innovate. It requires businesses to disrupt the market and create a new market space with negligible competition.
Here, demand has to be created, with growth opportunities, both profitable as well fast. In addition to this, market rules are considered mutable accompanied by a large unexplored and potential market. The cornerstone of the Blue Ocean Strategy is value innovation- innovation where a company’s actions favour both its cost structures and value proposition.
HOW CAN IT BE ADOPTED BY THE STARTUPS?
We strongly recommend the following ways in which you can revolutionize the destiny of your startup by creating a vast blue ocean for your own business:
Reconstruct the market boundaries
A startup needs to widen the boundaries of its market and analyze the important factors of the micro as well as the macro environment to find new ways for business expansion.
For example: in 2006 when people wanted to watch something for leisure purposes, they could either go to the cinema, rent a DVD or go to YouTube. Those are all different products but they are satisfying the same need. Such breaks between the substitute products are the best place for finding blue ocean ideas. In 2007, this gap was shut and sealed by the very famous, Netflix, which offered a way to watch popular movies and TV series all just a click away.
These are the joint groups of companies working in the same industry background and competing on th bases of the same elements, for example, same price, degree of rarity etc.
Such competing companies get so stuck up in their internal wars that they fail to pay attention to the other companies belonging to some different group that ultimately take advantage of this and find a blue ocean here.
For example, companies producing boomboxes were stuck up trying to beat each other offering superior sound quality while those making radios were trying to create the most compact solutions. But, using the blue ocean strategy here, Sony amalgamated those two features and created the Walkman player, that was compact as well as with wonderful sound quality.
The customer chain
Sometimes, one needs to analyze your customer chain to decide whether the blue ocean company can create a new value for its other participants because most often the buyer is not the ultimate consumer.
For example, photo printers for personal use emerged as the companies decided to offer a product to private clients who used to go to the photo lab to print their personal pictures.
Additional products and services
Value is quite often found to be latent in the accompanying services and products, that don’t get enough attention. It is highly advisable for startups to create blue ocean products that have them built-in. One must aim at enriching the product that other competing firms may have failed to offer.
For example, Polaroid came up with the Polaroid 300 Instant Camera which unlike traditional cameras uses bright colors and looks more like a cute toy than an actual piece of equipment. This way it has been designed so as to bring out an emotional element to the product along with the functional component.
With all that being said, we hope, that now your startup walks on the footsteps we have laid down as mentioned above and instead of adjusting to the trends, it uses them to increase the value of your product.