28 January 2009

Blue Ocean Strategy – personal training style

A red ocean personal trainer competes against the tens of thousands of personal trainers in the market for clients by doing free sessions, cutting prices, handing out brochures and trying to get a competitive edge over the next trainer.

Using a blue ocean strategy, with lessons from the must read book 'Blue Ocean Strategy', by W. Chan Kim and Renee’ Mauborgne, a personal training business focuses on making the competition irrelevant by creating a leap in value for buyers by opening up new and uncontested market space.

Consider what Vision are doing with weight loss and Curves open a store every 4 hours somewhere in the world. Their blue ocean strategy taps into the female clientele, 30 minute workouts and non threatening environment of their gyms.

In the red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. Here, companies try to outperform their rivals to grab a greater share of existing demand. As the market space gets crowded, prospects for profits and growth are reduced. Products become commodities, and cutthroat competition turns the red ocean bloody.

Blue oceans in contrast, are defined by untapped market space, demanding creation and the opportunity for highly profitable growth. Most blue ocean businesses are created within a red ocean by expanding existing boundaries like Curves and Vision. Competition is irrelevant because the rules of the game are waiting to be set.

Create your Blue Ocean now.

21 January 2009

helplessness

Martin Seligman changed the world of traditional thinking by proving the theory of helplessness. This is an important behaviour to understand if your in business. By containing three different dogs in three different boxes and studying their response to three different circumstances, Martin was able to prove his theory of helplessness.

Circumstance 1: the dog when probed with a light electric shock was able to turn off the shock by nudging the bar with his nose.
Circumstance 2: the dog when probed with a light electric shock was unable to turn off or change the circumstance no matter what he tried.
Circumstance 3: the dog when probed with a light electric shock was given a mixed version of circumstance 1 and 2.

After a few weeks of this 'therapy' all the dogs were put in a small box with sides that allowed the dog to jump out, when probed. Dogs 1 and 3 jumped out of the situation, whilst dog 2 simply gave up and laid down. Seligman had discovered that whenever the efforts to change results seem fruitless the expected behaviour will be to lay down and surrender.

This test was repeated using humans and the exact behaviour was confirmed. Helplessness according to Seligman, sits between pessimism and optimism. For a more detailed overview I suggest reading Seligman’s book titled 'Learned Optimism' for a more thorough overview and detailed explanation. Awesome read.

In striving to achieve business goals, when all around you seems hopeless and there looks like there is no way out you will feel like laying down and giving up. It will be emotion, passion, purpose and desire that drive you from despair. When you feel like you are getting zapped from all directions financially and personally in time consuming activities, it will be the change between the ears that will be the most significant. The lesson is in the journey and quite often we learn the most when we are in tough situations. A common observation of successful business owners is that of having your back against the wall and being in a position of having to fight your way out.

If you find yourself in this position you need to pull yourself up again and keep putting one foot in front of the other. Fight for your cause ethically, stay true to your values and know your on track. Ask yourself, what is the lesson? Then keep on trekking wiser for your journey.