I have recently been reading up on the rise and huge success of Netflix and how they used the “Blue Ocean Strategy” to change the rules of the game.
Put simply the Blue Ocean Strategy is innovating in ways which make your competition irrelevant.
Netflix disrupted the market, instead of competing on price or being a little bit better than other movie rental suppliers, Netflix changed the way people rented movies. First they charged a monthly flat subscription fee and allowed people to keep the movies as long as they wanted. Then they moved into the streaming market place, next partnerships with Apple TV and Smart TV’s for built in apps allowing for customers to sign up immediately and more recently developing a smart algorithm which makes recommendations based on what you have already watched.
What Netflix did so brilliantly is create a new space, they stopped competing in a crowded ocean of movie rental companies and made a new space where there was no competition.
Blockbuster had the change to buy Netflix in 2000 for $50 million. The CEO of Blockbuster thought it was a very niche market and passed on the opportunity. Netflix is now valued at $32.9 billion. I wonder if Blockbuster had changed the questions they were asking if they would still be around today?
So what questions do you ask in your business? By changing your question can you change your result, how can you step out from the ocean of sameness around you, stand out, and make waves in a new ocean?