Blue Ocean Strategy in Recession
CHICAGO, Ill. (PRWEB) December 1, 2008 -
As the looming recession pressures businesses to minimize the damaging effects of the current economy while still trying to make forward motion, many companies are searching for new strategies to help them through the crunch.
Chicago based business strategist and speaker, Mike Bolden, has developed a series of articles aimed at introducing businesses to the Blue Ocean Strategy, and to teach them how to use Blue Ocean Strategy to maintain profits and growth, and how to lower costs while still maintaining differentiation and innovation.
The first article of the series focuses on identifying features or benefits of a product or service which customers could use less of, and reducing the amount or degree of that feature. This lowers the product costs without reducing the value or perception of value for the customers. Bolden calls the phenomenon "selective feature reduction".
"Basically, you're taking costs out, while maintaining overall perceived utility. The selective feature reduction actually increases the relative value of your product or service - so you win by subtraction," Bolden explains.
Bolden says these strategies are especially important in light of the current state of the economy and unprecedented low consumer confidence.
"If you reduce less desired features to customers, you reduce your costs without hurting your product offering. Your overall costs drop thousands or millions of dollars - depending the scale and volume of your business, without damaging the brand," he said. "This costs reduction can be passed on in a price reduction to the customer, and widens your market base by stealing customers from private labels or the lower costs producers of your industry."
"Not only do you widen your margins, but you increase your market share by flanking lower costs brands in their own market space," Bolden continued.
The "Blue Ocean Strategy in Recession" series demonstrates that even in the midst of an economic downturn, businesses can substantially reduce costs, and grow profits and revenue.
For more information on Blue Ocean Strategy and to read Mike Bolden's "Blue Ocean Strategy in Recession" articles, go to Mike Bolden's Blue Ocean Strategy Web site at http://www.MikeBolden.com/