So, this week I presented my synopsis on the terrific book Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant by W. Chan Kim and Renee Mauborgne.  The group was the entire team at a growing firm, one that is vibrant, alive, energetic…  The kind of place people like to show up for work.

But, near the end of my presentation, one of the participants asked me this question:  “What is a good red ocean strategy?”

You can just sense what is behind that question.  “This blue ocean strategy idea is pretty cool, but in our real world, we are often competing in a very crowded marketplace?  We are not in some blue ocean.  We swim in a churning red ocean.  What do we do?”

It’s a terrific question.

To refresh:  the analogy of a red ocean points to a world where there are so many voices, so many competitors, going after the same big bucket of business, that a company is ”fighting for its life” in this very crowded ocean.

Here’s the chart from the book Blue Ocean Strategy, which contrasts the two oceans:

Red Ocean Strategy	Blue Ocean Strategy
Compete in existing market space	Create uncontested market space
Beat the competition	Make the competition irrelevant
Exploit existing demand	Create and capture new demand
Make the value-cost trade-off	Break the value-cost trade-off
Align the whole system of a firm’s activities with its strategic choice of differentiation or low cost	Align the whole system of a firm’s activities in pursuit of differentiation and low cost

So, if the ocean you swim in is red, what do you do?  I haven’t found a book that directly addresses this question.  But, I’m going to take a stab at it.  Here it is:

The Randy Mayeux Red Ocean Strategy for Companies in a Crowded Marketplace

Element #1 – Make sure you are as good as the competition around you – preferably a little better (at the price you offer).

You have no chance of competing if their product, or service, is better than yours.  Now, obviously, you can’t offer a Lexus at a Chevy Cruze price.  But at the price you offer your product or service, make sure the quality is up to or above par with your competitors.  If it’s not, you have little chance of success.

Element #2 – You really, really do have to be better than the competition with your level of customer service, and your overall customer experience.

This is so obvious.  And it will.not.happen by accident.  Customer service that wins the day boils down to three elements:

be very competent,
be nice,
and be super prompt.

So, whoever in your company deals with any customer (hint: that is pretty much everybody in your company!), make sure that person knows what he is talking about and what she is doing, is nice and pleasant in each customer interaction, and is incredibly prompt in responding to the customer in every instance.

The goal:  the customer never ever says “I really don’t like dealing with that company.”  Instead, the customer says:  “You know, I really do like dealing with this company.”  Until that happens, you will lose to the company that does this better than you do.

Element #3:  Be really easy to “use.” 

Is your product or service easy for the customer to use?  Is your web site, and your entire business interactive process, easy to use and access?  Convenient!  No hassles!  (read this blog post:  We Really Don’t Like Hassles — So, our Agenda: Create “Hassle Free” ).

Element #4:  Be visible and “loud” – right up to the edge of being obnoxiously so.

This one is tough.  In a crowded marketplace, you’ve got to make sure people think about you – often.  So your company has to be out there in front, top-of-mind.  You really do have to be the loudest one in the room.  But not so loud as to be obnoxious.  Tough balance!

So, your folks all need to use every tool possible – virtually, and in person.  Be a networking maniac, at live networking opportunities, and constant feeding of the virtual networking opportunities.  If people are going to find you when they need you, they have to know you!  Right?

Read this earlier post:  How to Market Yourself.  Though it speaks to individuals, it  is certainly applicable to companies.

Update (suggested by Mike Covert, President of Ignite Partnership):
Element #5:  Be easy to refer.

Since the life blood of business is this — “I like what you do, so I’m going to tell others about you” — make it easy for folks to make those referrals.  And, always be grateful for such referrals.  Do not treat them shabbily — they are extremely valuable.

So, here it is — Your Red Ocean Strategy:

Be Good
Be Attentive
Be Easy to Use
Be Noticeably Top-of-Mind
Be easy to refer

Good luck in the swirling waters of your own red ocean portion of the world.