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.
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2 comments:
In Blue Ocean Strategy, surrender is shaped extra hastily than fought over.
Great article Scott. This is one of my all time favourite books and definitely a must read for anyone wanting to start their own pt business.
Many thanks
Jason
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