Most companies compete instead of innovating and creating new means of generating profit. See the Smartphone and Tablet war between Apple, Samsung, RIM and Nokia.
We also have the competition based on price that occured when Airtel took over Zain Nigeria. MTN Nigeria and Glo Nigeria joined the price war. To what result?
They are contesting for thesame customer thereby creating Red Ocean. Red Ocean is what happens when companies are fighting in the same market for the same customers. Blue Ocean is calm water where competition in non-existent or irrelevant.
When Etisalat Nigeria came into the country, I notice they had products for all category, but focused more on the youths. Many of the people I have observed around me who are raving fans of Etisalat are young people. Many of whom are using mobile phone for the first time.
Easy clique, a plan that allows you to connect with your friends at a very low rate, make midnight calls and send lots of messages for free became a hit among the youngsters. To top it up, there is the usual 15mb weekly that you get for free each time you recharge NGN200 airtime.
This young people who are between 15yrs and 25yrs are growing and will change roles soon. With Etisalt giving them a rich first experience, they are more likely to remain with Etisalat and maintain their first line.
MTN Nigeria has had a fill dominating the corporate and high end spenders for a while. Etisalat has been busy building this untapped young audience for a while and growing from strenght to strenght. This is what I admire about the strategy used by Etisalat.
I am interested to see how this will go down three years from now, especially with Etisalat lunching and testing its 3G network. I for one, would cross over to Etisalat as soon as the 3G service gets better.
You can learn from how Etisalat emplyed this strategy and apply Blue Ocean strategy in your own business venture too.
How do you handle competition in the industry you operate? Will you like to use Blue Ocean strategy too?
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