For those of you involved in the business world, you’re probably already familiar with the terms ‘blue ocean strategy’ and ‘red ocean strategy,’ business strategies used to maximize profit.
Initially, the concept of ocean strategy was developed in Europe and North America in the 19th century when capitalism was thriving. At that time, competition was believed to be the driving force of capitalism, pushing entrepreneurs to “fight tooth and nail” to maintain their market share and increase profits.
To cope with this fierce competition, entrepreneurs tried to minimize production costs to make their products affordable, a strategy known as Red Ocean Strategy (ROS).
Over time, entrepreneurs realized that this relentless competition would eventually harm the market as a whole. This realization led to the birth of the Blue Ocean Strategy (BOS) in 2004, aiming to seek new markets and locations with innovative products.
Ironically, BOS repeated the same mistakes, turning the oceans red again due to unavoidable competition in maintaining the market.
So, is there another ocean strategy to address this issue? Yes, there is! Let’s dive into the following article!
Green Ocean Strategy
Despite the “green” tag, Green Ocean Strategy (GOS) has nothing to do with the environment! GOS is a business strategy that emphasizes market sustainability for the short, medium, and long term.
GOS focuses on developing products and services that meet consumer needs by optimizing resource use and enhancing operational efficiency.
Instead of prioritizing competition like ROS or BOS, GOS emphasizes collaboration, communication, and well-being. This doesn’t mean entrepreneurs don’t compete at all, but competition isn’t the primary goal in GOS.
If you want to implement GOS in your business, there are three stages to consider:
1. Explore
In this initial stage, you can identify the weaknesses of your competitors, one way being by examining sustainability reports, which are usually free and publicly available. By reviewing these reports, you can pinpoint areas where your business can “outpace” others.
For example, if you analyze a competitor's sustainability report and find they have a poor track record in handling emissions pollution, you can leverage this opportunity to highlight the positive environmental impact of your business.
2. Examine
After exploring your competitors, this stage requires you to comprehensively assess your own business's capabilities and resources.
Ensure that your business goals align with your capabilities and resources to avoid any imbalance or roadblocks along the way.
3. Execute
After exploring competitors and assessing your own business, it's time to execute the appropriate strategy. One important step before execution is to determine the roles necessary to implement the strategy.
For instance, if your business focuses on environmental sustainability, ensure that key roles such as analysts and environmental specialists are included.
So, what do you think? Interested in diving into the green ocean?
Don’t worry, Fitie is here to help you navigate the green ocean!