Value Innovation, a key component for early stage software companies
As an early stage software company, finding ways to stand out from your competitors can be a daunting task. However, one strategy that can help you differentiate yourself from the competition is value innovation through the blue ocean strategy.
The blue ocean strategy is a business concept that was introduced by W. Chan Kim and Renée Mauborgne in their book “Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant.” The idea behind the blue ocean strategy is to create a new market space that is uncontested by existing competitors, allowing your company to thrive and grow without the constant threat of competition.
Value innovation, which is a key component of the blue ocean strategy, involves creating a product or service that offers unique value to customers at the lowest cost. This value can come in the form of new features that solve a problem in a more efficient or effective way, AND by offering a lower price point that allows customers to save money.
Value Innovation Example
OPTe provides unique value by integrating best-in-class software with an online platform for creating feature-rich wp websites, at the lowest cost on the market.
For early stage software companies, value innovation through the blue ocean strategy can be a game changer. By identifying a gap in the market and creating a product or service that meets the needs of customers in a new way, you can establish yourself as a leader in your industry.
To implement the blue ocean strategy, companies can start by analyzing their current market space and identifying areas where there is untapped potential. This could involve conducting market research to understand customer needs and preferences or analyzing existing data to identify trends and opportunities.
Once you have identified an area of untapped potential, the next step is to create a product or service that meets the needs of customers in a unique way. This could involve developing new features, creating a new pricing model, or finding other ways to differentiate your company from the competition.
In conclusion, value innovation through the blue ocean strategy can be a powerful tool for early stage software companies. By creating a new market space and offering unique value to customers, you can establish yourself as a leader in your industry and set yourself up for long-term success.
It’s funny, I googled business and marketing strategy books a couple of days ago. Blue Ocean was one of the recommended books. Now I’m seeing it pop up everywhere. I’m doing a business strategist course at the moment so it’s on the mind. As is marketing as I’m an entrepreneur.
That’s great! It was really helpful in putting my practice into context as an innovator. The key takeaway for me was positioning your service-product-brand at the highest value for the lowest cost “value innovation”.