Uncharted: Navigating the Hazards Below Blue Oceans pt.1
Once upon a time, in the world of digital agencies, there lived a visionary owner named Alex. Alex was determined to create a Blue Ocean Strategy to set their agency apart from the competition and pave the way for exponential growth. However, Alex was so captivated by the idea of venturing into uncharted market spaces that they overlooked a fundamental aspect of Blue Ocean Strategy.
It's a toolset. And just like any other mechanic working with tools, one toolbox may be missing parts you need to find elsewhere.
As Alex began implementing their Blue Ocean Strategy, cracks in the plan started to surface. They encountered unexpected obstacles, struggled with their company's strengths and weaknesses, and learned first-hand how fast competitors adapt to the ever-shifting market landscape, leading to costly missteps and overlooked opportunities, ultimately causing any strategy to flounder.
A Compass On An Open Sea
A tool I've learned to incorporate when developing new Blue Ocean Strategies is a SWOT (Strengths, Weaknesses, Opportunities, and Threats) Analysis. This strategic planning tool helps businesses identify their internal strengths and weaknesses, as well as external opportunities and threats. It can help companies understand their competitive position and uncover potential avenues for growth or differentiation.
Combining BOS + SWOT
When combining the two approaches, a SWOT Analysis can enhance a Blue Ocean Strategy by providing complementary insights that help a business identify its internal strengths and weaknesses, as well as external opportunities and threats. These insights contribute to a more robust and effective Blue Ocean Strategy.
Here are some ways a SWOT Analysis can complement a Blue Ocean Strategy:
Identifying strengths: A SWOT Analysis can help recognize core competencies, resources, and capabilities. Companies can better assess opportunities across a Blue Ocean Strategy Canvas's competitive factors by understanding strengths.
Recognizing weaknesses: Understanding internal weaknesses through a SWOT Analysis can help businesses identify areas for improvement or elimination. By addressing weaknesses, anyone can strengthen their overall value proposition.
Uncovering opportunities: A SWOT Analysis helps identify external opportunities that may align with a company's value proposition or capabilities. These opportunities can serve as a starting point for exploring new market spaces or identifying areas to raise and create value in a Blue Ocean Strategy context.
Assessing external threats: On its own, Blue Ocean Strategy is about eliminating competition, but competition is a weed that will grow wherever there's water, and if you have Blue Ocean, That's a lot of room for invasive species to thrive. By examining external threats with a SWOT Analysis, businesses can anticipate challenges that may arise in a new market space. This awareness can guide enterprises in preparing for potential obstacles when pursuing a Blue Ocean Strategy.
Organizations can combine SWOT analysis insights with the Blue Ocean Strategy process to create a more holistic picture of the business's competitive landscape. A company can use its identified strengths and opportunities to inform decisions on what factors to raise or create while addressing weaknesses and threats can guide decisions on which factors to eliminate or reduce.
Prepare For Depth
Before diving into any strategic shift, it's crucial that you go through the exercises that help you visualize the landscape you are working within. Blue Ocean Strategy is an excellent toolset, but it's essential to use the right tool for the job—no one wants to use a sledgehammer to swat a fly.
Incorporating tools like a SWOT analysis into your risk assessment and mitigation efforts can increase the likelihood of success when venturing into uncharted market spaces with a Blue Ocean Strategy. As a digital agency owner, embracing this approach can propel your business to new heights, setting you apart from competitors and driving growth in an ever-evolving industry landscape.
As for our visionary owner Alex and our hypothetical agency's future, they will add a few other tools to their repertoire, and we'll continue the journey in my next article.
Thanks for reading. Let me know in the comments if you find this article helpful.
Stay up-to-date with the latest articles on simplifying technology, driving innovation, and fostering social impact. Subscribe now and join our growing community of tech enthusiasts, professionals, and change-makers. Together, we can shape the future!
