The first thing every entrepreneur or small business owner needs to know is that if they want to grow and scale, they need to move away from competing. Instead they should move into and create new markets. They don’t need to go against established players with many times the financial and marketing resources. We’ve seen how small companies can grow very fast and quickly become big by not going head-to-head but by creating. Why go against Goliath when you don’t have to?
Take citizenM Hotels. A company founded in 2008 that by applying the tools and process outlined in Blue Ocean Shift sidestepped the intense competition of the hotel industry and created the new market of affordable luxury hotels. Five-star comfort at prices accessible to three star customers. Who wouldn’t like that? No wonder they have guest ratings in the superb and fabulous category and occupancy rates 80% higher than the industry average. And they did that while eliminating almost 40% of what the industry competes on, making them arguably one of the most profitable hotel chains in the world. Today they are rolling out to major cities across the world.
That’s the real opportunity we see for startups and small companies to grow and scale. To shift from competing to creating and fueling growth by offering unprecedented value.