Capitalism rewards creativity as well as competition:: NY Times

Words of wisdom from one who knows.

I read this in the context of my own industry [insurance] and my experiences of the last 10 years [the last 2/3 in particular] and recognise the lack of creativity.

Too many business owners operate as “managers” who put too much effort into bemoaning market issues but lack the vision to create change and to fulfil the role of Leaders: in their own firms or in an industry that (like banking) has actively discouraged the invaluable input of contrarians. As a result they are doomed to do little more than play hard in a market of “me too” organisations, products and relationships!

…we often shouldn’t seek to be really good competitors. We should seek to be really good monopolists. Instead of being slightly better than everybody else in a crowded and established field, it’s often more valuable to create a new market and totally dominate it. The profit margins are much bigger, and the value to society is often bigger, too.

via The Creative Monopoly –

Just what is a "Blue Ocean Strategy?"

I thought that this was a far better summary, of what “Blue Ocean” is about, than I could manage. Well worth a read as it may spark THE idea that provides you and/or your business with a “new path” through these tough trading conditions:

Renee Mauborgne, Co-Author of Blue Ocean Strategy

Summary: The primary concept is simple: Blue Oceans represent unknown, uncreated market space. They become wide open opportunities once discovered and executed. Red Oceans, on the other hand, represent known markets. These are highly competitive, segmented, bloody, shark-infested waters with shrinking opportunities. Throughout history, markets are born as blue oceans and evolve to red through competition, commoditisation and over supply. The goals of a blue ocean strategy:

Create uncontested space

Make competition irrelevant

Create and capture new demand

Break the value-cost trade-off

Align your entire system in pursuit of low cost, high margin Read more of this post