I had an interesting discussion with a friend of mine about business hours. Already, some people can work when the want and that’s great. Some people work better between 8-12am and other between 12-4pm and again others like to work late at night. I think that in the future more people are able to work when they want and that will be interesting.
I think that after some threshold local businesses will adapt this behavior. This is simple game theory.
This is a typical Coordination game and quite intuitive. Only when both parties agree on a convention both will be in an equilibrium.
However, it’s quite interesting because as soon as businesses adapt to this new situation they will have a competitive advantage, i.e. 24/7 customer support. This will in turn lead other businesses adopting the new convention. Voilà, and there’s a Tipping Point scenario.
What is it about?
There are red and blue oceans. Red oceans are highly competitive markets (e.g. commodities). In contrast blue oceans are markets with a low rate or non competition. The authors explain how to construct & execute a blue ocean strategy.
There are several tools to construct and execute a blue ocean strategy. Some new ideas are targeting non-customers and tipping point leadership. The idea of targeting non-customers is easy. Before the Ford T-Model cars were expensive, so many people don’t bought them. Ford invented the T-Model which was really cheap, therefore non-customers converted to customers for this business.
The tipping point leadership is based on the popular tipping point phenomena. To change a company fast try to influence the key players (important and well respected people). These key players will allow you to influence a lot of people with a small effort.
You will notice that this book is written by academics. You can’t read it so fluently because there is some unnecessary complexity. However it got some nice examples of companies building blue oceans and shows how you can construct your own blue ocean strategy.