CREATING “BLUE OCEANS” STRATEGY ON THE EXAMPLE OF VODPROM AND VOD TOKEN
What is business? You can talk for a long time on this topic, but the first thing that any experienced entrepreneur will answer is competition.
Even if a company is developing by leaps and bounds, it is vital for it to keep abreast, monitor the market situation and “spy” on the success of competitors.
Why it is important
And is it possible to discard boring business plans? Theoretically, yes, if you are the only supplier of a highly demanded product among the population.
Now, likelihood of such a situation is zero. Several companies create goods and services at once, and a potential buyer always has plenty to choose from.
Nothing remains but:
- LOWER PRICES;
- INCREASE SALES;
- IMPLEMENT LOYALTY PROGRAMS;
The result of such approach is maximum load and minimum return. Due to small profits, the quality of service is falling, the business is still teetering on the brink, and competition continues to grow. It is also important that new, even more competitive entrepreneurs are already entering the market.
How to develop in the conditions of growing competition and what does blue oceans have to do with it?
Briefly about the strategy
As a business solution, blue ocean was first described in the eponymous book by Kim Wichan and René Mauborgne in 2005.
The Blue Ocean is your personal initiative, a new direction in the implementation of a sought-after product. You can promote a mass product or service by crafting special needs of your target audience.
Creating blue ocean, you control an area that belongs only to you. This does not increase competition, but makes your business profitable and sustainable by carefully working with UNMET needs of the buyer.
EXAMPLE — Ford T. Before the advent of the first Ford cars, each car was assembled by hand and only on an individual order. As a result, each such project was very expensive and inaccessible to the general population.
The first model of the Ford car was released in 1908 and cost half as much as cars before it. After 16 years, the price fell by half again, which allowed Ford to think over and implement his own blue ocean.
The solution was to produce cars in a conveyor way. A separate worker was responsible for each step of the process, which helped to reduce not only energy costs (by 60%), but also prices for buyers.
Result: cars became available to everyone and almost completely replaced horse-drawn carts.
In those years, massive piracy of music tracks was becoming a big, rampant problem. Apple took this agenda into account and infiltrated a new, unoccupied niche.
To do this, the corporation enlisted the support of five record labels, paying them and the musicians up to 70% of the cost of each downloaded track.
Result: labels received profits and copyright control, users — a wide range of music and ability to download a desired track in good quality. Apple itself has ensured a steady growth in popularity for many years.
So what is the strategy about?
The European Institute of Business Administration (INSEAD) staff survey lasted over 10 years. It was based on data on the activities of global companies over the past century (more than 25 industries).
It made it possible to determine the factors used by those who created their own blue oceans. Companies integrated their values and innovations, used technological progress, and through innovations maintained closer contact with the buyer.
And most importantly, they diligently worked out any non-standard needs.
Thus, it can be concluded that the blue ocean is:
- CREATION OF A NEW MARKET AREA
- IMPLEMENTATION OF NEW DIRECTIONS (DEMAND)
- LACK OF FIERCE COMPETITION
- RIGHT BALANCE OF VALUES AND INNOVATION
Can it be argued that this approach is much simpler? No, but it brings more pleasure and profit. You come up with new solutions, establish close contact with the target audience, always stay in the black and do not immerse yourselves into petty work with minimal return.
How to integrate strategy into business
1 Analyze adjacent areas.
A potential client has different ways of solving the same situation. Research similar industries and offer buyers several different options.
2 Implement new solutions.
This is especially true for those areas in which the buyer is an intermediate link between the product and the end consumer. An example is pharmaceutical companies that are rapidly shifting their focus from healthcare workers to all segments of the population.
3 Expand opportunities for clients from different niches.
Is your product in the premium segment? Think strategically and think about what will help customers move from a low level to a higher one
4 Consider complex solutions.
A product can be sold with an in-demand related service for a minimal fee. You can add something extra to almost every offer, i.e. something that will make the consumption process even more comfortable.
UNICAP is an example of successful implementation
Here, the concept of blue oceans is fundamental to UNICAP’s international policy course.
We create new markets, promptly respond to any changes and competently allocate capital, focusing on the most progressive investment niches.
Result: significant savings and stable development of the most needy industries.
Let us note that the integration of this strategy helps the project to increase business potential and help new teams. We help to acquire profitable projects and implement reforms, using any, even the smallest crisis for development.
What’s special: dynamic integration of the principle of anti-fragility, which allows us to act quickly and accurately in the most demanding environments. We consistently study any circumstances and are not afraid to be proactive.
All this helps us to achieve guaranteed success in the implementation of the most complex and innovative projects, including the example of the VODPROM transnational corporation.
About the project
VODPROM is a project company based on the UNICAP PFI-project.
The corporation fully complies with the principles of sustainable development of the United Nations and adheres to the ESG approach — environmental, social and corporate management. The combination of these principles provides the company with stable development based on mutually beneficial and trusting partnership with the state.
UNICAP considers environmental issues and the problem of fresh water scarcity, focusing on the lack of sufficient attention to the issue of cleaning natural water sources.
Over the past century, the demand for water has increased by 500%, more than 80% of diseases are transmitted through contaminated water. With the growth of urbanization, disappointing statistics continue to increase.
Pollution of water resources is a problem of developed countries where the lack of water is not felt at the household level. Unfortunately, this is a common self-deception that endangers the health of millions of people around the world.
UNICAP designs, builds, finances and operates the infrastructural, socially oriented VODPROM municipal water treatment project, and the PFI (Private Financial Initiative) concept provides the project with a safe and crisis-free development over the coming decades.
What is included?
- Modernization of housing and communal services (through a public-private partnership agreement with governments). We create regional factories, build industrial water treatment facilities.
- Transfer of the main activity to online (with the help of blockchain). We adapt the VODPROM platform, create unique equipment for monitoring and controlling water resources. We integrate into existing facilities.
- Further management and development of the mechanism by the society through the VOD token and ICO.
Investments in the system of water treatment and water supply are the most beneficial for the world community, since the reduction in the level of morbidity and mortality depends on the quality of water.
You can influence important global health decisions using the principle of “equal opportunity” and without going through numerous bureaucratic procedures.
With the active participation of caring and responsible people, we will be able to organize the initial formation of capital and, using online voting, direct targeted funds to the most problematic areas of life.