All the country and expatriates – example of how

All that changed when the oral care companies introduced their own whitening products that were safe, of good quality and had a lower cost. A huge demand was seen from the people who did not have a dentist, or could not afford these services in a dental office.According to Hutson (2017), to start thinking of a Blue Ocean, firms need to forget the current consumers and the competition, and focus on noncustomers who will be the core of the blue ocean market.2.6 Technology BalanceThe phenomenon of breaking out of the traditional boundaries of the market is the first principle of Blue Ocean strategy. This principle addresses the search risk that affects companies. The challenge is to identify the blue ocean opportunity with the highest potential to succeed.For most industries, a small number of strategic groups understand the underlying strategic differences among industry players. Strategic groups can be ordered hierarchically based on two dimensions – price and performance. An increase in the price is expected to result in a corresponding increase in performance. A majority of the companies try to improve their competitive position within this strategic group, but the key is to create a blue ocean across these existing strategic groups and break out from the narrow mind-set (Kim & Mauborgne, Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant, 2005).According to Prematunga (Prematunga, 2009), the well-known tea brand Mlesna attracted an entirely new group of customers who were initially noncustomers of the industry. These were affluent customers who were prepared to pay several times more than a typical housewife. These customers included travellers from abroad, private sector corporate personnel travelling abroad for business, VIPs representing the country and expatriates – example of how different strategic groups were used in a blue ocean strategy.A handful of products and services were used in isolation, other products and service offerings affect the value of most. In red oceans, rivals necessarily compete within the frame of the industry’s product and service offerings. Value additions are often hidden in complementary products and services.The key is to devise a strategy that can increase the value proposition of the company, making use of the value of complementary products and services (Kim & Mauborgne, Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant, 2005).According to Randall (2015), blue ocean strategy is about getting the customer offering right before anyone else by generating value through innovation. A blue ocean strategist gathers insights on reconstructing market boundaries by investigating noncustomers, not by looking at existing customers.A blue ocean strategy was not just about being a pioneer of a market and innovation. It was about being the first to do something right by creating value through innovation. A look at the technology giant Apple’s products is proof enough for this – none of Apple’s top-selling products have been the first in their respective categories. Yet the products successfully linked innovation to value (Medium, 2015).According to Medium (2015), in most blue ocean cases that heavily involved technology, like Apple’s iPhone, Intuit’s Quicken and Salesforce.com, the success of what these offered depended comparatively less on technology, and more on the fact that customers perceived these offerings to be simple, easy to use, fun and productive. Thus, when technology is involved, it is critical that it is linked to value by defining how a product or service facilitates a leap in productivity, simplicity, ease of use, convenience and fun.Companies in most cases mistakenly assumed that successful blue ocean strategies revolved around cutting-edge technologies. These businesses generally drove towards developing new products and services that are too farfetched, too complicated or lack the required complementary environment to unlock a new blue ocean market (Medium, 2015). So, the authors agreed that there should be a balance between technology and what is being offered, for a blue ocean strategy to succeed.Kim and Mauborgne (2015) stated that, technology, when involved, should be linked to value by defining how the product or service provides a leap in productivity, usability, simplicity, convenience and fun, regardless of how advanced technologically the product or service is. Value innovations, not just technology innovations, are responsible for opening commercially tempting new markets.A look at Sri Lanka’s current state with regards to the use of smartphones and internet revealed some facts, important to support the case on the success of PickMe. According to statistics, the ownership of desktops and laptops in Sri Lanka has fallen drastically in the first 6 months of 2016, compared to the same period in 2015 because of the increase in smartphone and tablet use (Wettasinghe, 2017).The increase in smartphone use has been evident with the increase in internet and email use across households, which was 15.1 percent and 8.6 percent across all types of devices in the first half of 2016. As per the Census and Statistics Department, this is an increase from 11.8 percent and a drop from 8.8 percent in the same period in 2015 (Wettasinghe, 2017).Furthermore, Wettasinghe (2017) stated that according to the digital marketing firm zMessenger, around 40 percent of Sri Lanka’s 14 million mobile subscribers own a smartphone, and the company had indicated that the internet penetration of Sri Lanka is at 29.3 percent. According to the government, Colombo has an internet penetration of 30 percent.

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