Create a new marketplace within in your business.
This means understanding what makes your business venture unique and added value vs your competition. You will then swim in clear waters and optimise profitability.
In this process you should ask yourself questions such as:
- Do I want to improve value or innovate on value? There is a fundamental difference
- What is the context in which my product is used?
- Who are my customers and who are my non-customers. How can I change the tiers?
Don’t try to protect trends (e-commerce, social media) but rather find out how the trend will change value to customers and change the business model.
Vital: Set target pricing and then figure out the max cost structure around it. Stick to PRICE because this is what market is willing to pay for your product or service.
A good example from Blue Ocean adaptor hotel operator CitizenM